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CommandBar raises $4.8M to make web-based apps searchable

James Evans, Richard Freling and Vinay Ayyala, co-founders at CommandBar, were working on a software product when they hit a wall while trying to access certain functionalities within the software.

That’s when the lightbulb moment happened and, in 2020, the team shifted to building an embeddable search widget to make software easier to use.

“We thought this paradigm feels like it could be useful, but it is hard to build well, so we built it,” Evans told TechCrunch.

On Monday, CommandBar emerged from beta and announced its $4.8 million seed round, led by Thrive Capital, with participation from Y Combinator, BoxGroup and a group of angel investors including, AngelList’s Naval Ravikant, Worklife Ventures’ Brianne Kimmel, StitchFix president Mike Smith and others.

CommandBar’s business-to-business tool, referred to as “command k,” was designed to make software simpler and faster to use. The technology is a search interface that sits on top of web-based apps so that users can access functionalities by searching simple keywords. It can also be used to boost new users with recommended prompts like referrals.

CommandBar in Clubhouse. Image Credits: CommandBar

Companies integrate CommandBar by pasting in a line of code and using configuration tools to quickly add commands relevant to their apps. The product was purposefully designed as low-code so that product and customer success teams can add configurations without relying on engineering support, Evans said.

Initially, it was a difficult sell: One of the more challenging parts in the early days of the company was helping customers and investors understand what CommandBar was doing.

“It was hard to describe over the phone, we had to try to get people on Zoom so they could see it,” he said. “It is easier now to sell the product because they can see it being used in an app. That is where many new users come from.”

CommandBar is already being used by companies like Clubhouse.io, Canix and Stacker that are serving hundreds of thousands of users. The most common use case for CommandBar so far is onboarding new software users.

He intends to use the new funding to grow the team, hiring across engineering, sales and marketing. The beta testing was successful in receiving good feedback from the early customers, and Evans wants to reflect that in new products and functionalities that will come out later this year.

Vince Hankes, an investor at Thrive Capital, was introduced to CommandBar through one of its pre-seed investors.

His interest is in B2B software companies and applications, and one of the things that became obvious to him while looking into the space was the natural tension between the simplicity and functionality of apps.

Apps are sometimes hard for even a power user to navigate, he said, but CommandBar makes something as simple as resetting a password easier by being able to search for that term and go right to that page if it is configured that way by the company.

“The types of companies interested in their product are impressive,” Hankes said. “We began to see demand from a broad range of companies that weren’t obvious. In fact, they are using CommandBar as a tool for deeper customer engagement.”

 

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SenpAI.GG wants to be your AI-powered video game coach

With most popular online video games, there’s a huge gap between being a good player and a great one. A casual player might be able to hold their own against other casual players, only for a random pro to wander by and chew through everyone like they’re somehow playing with a different set of rules.

Could an AI-driven voice in your ear help close that gap, if only a bit? SenpAI.GG, a company out of Y Combinator’s latest batch, thinks so.

Much of that aforementioned gap boils down to practice, muscle memory and — let’s face it — natural ability. But as a game gets older/bigger/more complex, the best players tend to have a wealth of one resource that’s oh-so-crucial, if not oh-so-fun to gather: information.

Which guns do the most damage at this range? Which character is best suited to counter that character on this map? Hell, what changed in that “minor update” that flashed across your screen as you were booting up the game? Wait, why is my favorite weapon suddenly so much harder to control?

Staying on top of all this information as players discover new tactics and updates shift the “meta” is a challenge in its own right. It usually involves lots of Twitch streams, lots of digging around Reddit threads and lots of poring over patch notes.

SenpAI.GG is looking to surface more of that information automatically and help new players get good, faster. Their desktop client presents you with information it thinks can help, post-game analysis on your strategies, plus in-game audio cues for the things you might not be great at tracking yet.

It currently supports a handful of games — League of Legends, Valorant and Teamfight Tactics — with the info it provides varying from game to game. In LoL, for example, it’ll look at both teams’ selected champions and try to recommend the one you could pick to help most; in Valorant, meanwhile, it can give you an audio heads-up that one of your teammates is running low on health (before said teammate starts yelling at you to heal them), when you’ve forgotten to reload or how long you’ve got before the Spike (read: game-ending bomb) explodes.

SenpAI.GG’s in-game overlay providing League of Legends insights. Image Credits: SenpAI.GG

Just as important as the information it provides is the information it won’t provide. In my chat with him, SenpAI.GG founder Olcay Yilmazcoban seemed very aware that there’s a hard-to-define line here where “assistant” blurs into “cheating tool” — but the company follows certain rules to stay on the right side of things and prevent their players from getting banned.

They won’t, for example, ever take action on a player’s behalf — they might fire an audio cue to say “hey, you should heal that teammate,” but they won’t press the button for you. They’ll only generate their real-time insights from what’s on your screen — not anything hidden within the running process. They also won’t do things like reveal an enemy’s location just because your teammate is also running the app and can see them. Think “good player standing over your shoulder,” not “wall hack.” The company says that they’re always within each game developer’s competitive fairness guidelines, and only work with approved/provided APIs.

It’s a good idea because it’s one that, arguably, never gets old. With each new game they support, they’ve got a new potential audience to serve. Meanwhile, it’s not as if the old games/insights will expire — a game’s big ol’ book-of-stuff-you-need-to-know tends to only get bigger and more complex as a game ages and the patches pile up. There are games I’ve been playing for years where I’d still love a voice assistant that says “Oh hey, the recoil on the gun you just picked up has gotten way more intense since the last time you played.” SenpAI.GG isn’t there yet, but there’s a ton of natural room for growth.

Yilmazcoban tells me that they currently have over 400,000 active users, with a team of 11 people working on it. The base app is free, with plans to offer advanced features for a couple bucks a month.

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3 invaluable founder lessons I learned on my immigration journey

I was four years old when my dad first showed me a computer. I immediately asked him if we could take it apart to see how it worked. I was hooked.

When I learned that Windows and Mac were based in the United States, I was 10. Since then, I’ve wanted to come here to launch my own tech business.

What I didn’t realize back then was that the first half of that dream — coming to the U.S. — would provide me with essential training for realizing the second half — launching a business.

As it turns out, the behaviors, attitude and mindset required to traverse the U.S. immigration system are many of the same ones required to navigate the uncertain waters of entrepreneurship.

The behaviors, attitude and mindset required to traverse the U.S. immigration system are many of the same ones required to navigate the uncertain waters of entrepreneurship.

In 2019, I launched Preflight, which makes smart and fast no-code test automation software for web applications. One big reason the business currently exists is that, in my journey to getting asylee status in the United States, I became really good at three things: accepting uncertainty, building resilience and maintaining a positive mental attitude.

I needed them all to get Preflight off the ground.

The many paths to the U.S. (and launching a startup)

I had my first shot at making my longtime dream a reality when I was applying to college as an undergraduate. I figured if I could go to school in the United States, I could find a way to stay and start a business.

After doing some research, though, I realized that U.S. colleges were too expensive.

But I figured getting out of Turkey, my home country, would be a start. I looked around for affordable schools and saw that France had good options. So I went to France.

Unfortunately, even after three attempts, I wasn’t able to get a student visa. So I headed back to Turkey and went to college there. After graduation, I knew I had a second shot at the U.S.: a master’s degree. I applied to computer science programs and got accepted — a huge win!

I first arrived in Georgia, where I got my TOEFL certification, then enrolled at Tennessee State University, where I got a teaching assistantship.

Keep in mind, to do all this, I had to have the right visas. I needed a student visa for my master’s degree, but if I wanted to work after graduation, I’d need a work visa.

The thing is, though, I didn’t want to work at a “job.” I wanted to start my own business, which requires a different type of visa altogether.

Oh, and there was another factor at play: I was enrolled at Tennessee State from 2014 to 2016, during the lead-up to the election of Donald Trump. So in addition to trying to figure out which visa I could reasonably get, I had to deal with the fact that the rules for visas could all change in the coming months.

These experiences are similar to what many founders deal with every day in the process of launching and running a business.

We don’t know if our products will work or if they’ll find a market. We don’t know how changing regulations might affect what we’re doing. We have no idea when something like a pandemic will pull the rug out from everything we’ve built.

But we keep going anyway. In my experience, the most successful founders are the ones who don’t wait for all the pieces to fall into place — they know that will never happen. They’re the ones who do the best they can with what they have. They trust that they’ll be able to adapt and adjust when things inevitably change.

Which brings me to my next lesson.

Resilience: Hearing “no” as “not yet”

Hearing “no” isn’t fun, especially when that “no” is about something you’ve wanted for more than a decade.

I experienced a lot of “no”s in my immigration journey, as one visa attempt after another failed. If I’d let any one of those failures stop me, I wouldn’t be where I am today — working at my own startup in the U.S.

The lesson I learned was to hear “no” as “not yet.” It’s been invaluable to me in my journey to becoming a founder.

For example: In 2014, while I was in graduate school, I learned about Y Combinator and decided that I wanted to be a part of it. Throughout grad school, I applied and got rejected three times.

The clock was ticking on my student visa, so I decided to shift my tactics. I applied to jobs at companies that were Y Combinator graduates to see what I could learn.

In 2016, I got hired at ShipBob, a Chicago-based company that was in Y Combinator’s Summer 2014 batch. I joined the team as its first full-time developer and the first one based in the States. From there, things changed dramatically.

For starters, I learned a lot. In my time with ShipBob — just two and a half years — we grew from 10 people to more than 400. I built two apps and applied to Y Combinator twice more and got rejected both times.

But in my work growing and leading a team of developers, I saw a need for a product that didn’t yet exist: a smart, fast, no-code test automation tool.

My team was spending way too much time building tests for ShipBob’s latest updates to make sure existing functionalities worked when we deployed. But when the code changed too quickly, our tests were outdated. It was incredibly frustrating.

Then we hired two quality assurance engineers and it took them four months to get 10% automated test coverage.

These problems led me to an aha moment: I could build a company to address this. A tool that is fast in test creation and can adapt to the UI changes.

That company is Preflight, and it’s the one that finally got me admitted to Y Combinator in the Winter 2019 batch. I was ecstatic when I heard that we’d been accepted. But then I realized that I couldn’t actually work on Preflight full time with my current visa status — at least, if I wanted to one day make a salary, I couldn’t.

And that brings me to my next point.

Maintaining a positive mental attitude as you face (many) challenges

My professional life wasn’t the only thing that changed dramatically while I was at ShipBob. My immigration status also evolved.

ShipBob applied for and got me an H-1B visa, which made me eligible to work in the U.S.

But when I got accepted to Y Combinator on my sixth application, I knew I needed an alternative: If I left ShipBob to run Preflight, I would lose my H-1B and my ability to work in the U.S.

This kind of conundrum is all too familiar to most startup founders: There’s no new opportunity without a new challenge to accompany it.

So I did what any founder would do: I focused on the positive (I’d gotten into YC!) and dedicated myself to figuring out a different way to stay in the country.

First, I tried to apply for the EB-1 visa, but the required documentation was too burdensome. I don’t think any founder could prepare for that application without several months of preparation.

Then I tried the O-1. No luck.

So I asked ShipBob if I could take an unpaid sabbatical, which would let me keep my H-1B status while I attended Y Combinator and worked on Preflight. They agreed. My brothers, who had both moved to Chicago and started working at ShipBob (you’re welcome, guys!) agreed to support me (thanks, guys!).

Finally, I had a solution that worked — but only for the time being. If Preflight was successful, I’d have to find a different way to stay in the country.

Transferring my H-1B to Preflight wouldn’t work, in part because it would require me to yield 70% to 80% ownership to my co-founder and agree that he could fire me at any time.

But there was another option I’d been reluctant to lean on: asylee status. In 2016, there was an attempted coup in Turkey (that’s the official story, anyway). I won’t get into the political details, but my family and I were supporters of the movement blamed for the attempt. As a result, we were at risk of imprisonment if we stayed in Turkey — and eligible for asylum status in the U.S.

I applied, but hoped that I’d land a work visa in the meantime, partly because asylum status can take years to get approved and partly because there was no telling whether the current administration would change the rules to make me ineligible before my status came through.

When I got accepted to Y Combinator, my asylum status was pending. When my initial sabbatical from ShipBob ran out, it was still pending. I asked for an extension and got it (thanks, ShipBob!). A few months later, I figured I could not get the visa sorted. I wanted to focus on my business and use asylum-pending status, which would give me work authorization for two years. I was therefore able to work on and take a salary from Preflight.

Putting it all together

My asylum was granted early this year, four years after applying. Getting asylee status was a big win because it meant I could realize my dream of running a business in the U.S. So I was, in some ways, at the resolution of my immigration journey — but I was just at the beginning of my journey as a founder.

Right away, I had my first experience applying all the lessons I’d learned in the last six years: We wanted to raise our first funding round. That funding would let me start taking a salary.

All told, we approached more than 100 VCs before we got a yes. But we did get that yes, and we raised a seed round of $1.2 million in September 2019.

It was a big win for Preflight, but it didn’t have the transformational power for the company I’d hoped for. That’s because, after closing our round, we didn’t focus on sales and marketing to the extent that we should have.

After several months of frustrating results, I consulted with my advisers about how to proceed. They offered me insight that seemed obvious once I had it — but that I may not have gotten on my own — which was discussing everything that’s happening internally with the investors. And the outcome was me being the CEO.

In the month and a half after I adjusted course based on my vision, I grew Preflight’s revenue 600% in just about two months.

The only constant is change

The whole startup ethos of disrupting what’s not working to improve people’s lives is based on the premise that the world is constantly changing. The global disruption caused by COVID-19 underscored that in a major way.

Founders who accept that change is inevitable and who embrace uncertainty, develop resilience for when things go wrong, and maintain a positive mental attitude about the ups and (especially) the downs of running a startup will be the ones who succeed for the long haul.

I’ve known since I was 10 that I wanted to run a company in the United States. Given the choice, I would have opted for a much smoother road to entrepreneurship. But what I’ve discovered is that the difficult immigration path I had to follow provided exactly the training I needed to succeed in the challenging role of a founder.

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Platform as a service startup Porter aims to become go-to for deploying, managing cloud-based apps

By the time Porter co-founders Trevor Shim, Alexander Belanger and Justin Rhee decided to build a company around DevOps, the pair were well versed in doing remote development on Kubernetes. And like other users, they were consistently getting burnt by the technology.

They realized that for all of the benefits, the technology was there, but users were having to manage the complexity of hosting solutions as well as incurring the costs associated with a big DevOps team, Rhee told TechCrunch.

They decided to build a solution externally and went through Y Combinator’s Summer 2020 batch, where they found other startup companies trying to do the same.

Today, Porter announced $1.5 million in seed funding from Venrock, Translink Capital, Soma Capital and several angel investors. Its goal is to build a platform as a service that any team can use to manage applications in its own cloud, essentially delivering the full flexibility of Kubernetes through a Heroku-like experience.

Why Heroku? It is the hosting platform that developers are used to, and not just small companies, but also later-stage companies. When they want to move to Amazon Web Services, Google Cloud or DigitalOcean, Porter will be that bridge, Shim said.

However, while Heroku is still popular, the pair said companies are thinking the platform is getting outdated because it is standing still technology-wise. Each year, companies move on from the platform due to technical limitations and cost, Rhee said.

A big part of the bet Porter is taking is not charging users for hosting, and its cost is a pure SaaS product, he said. They aren’t looking to be resellers, so companies can use their own cloud, but Porter will provide the automation and users can pay with their AWS and GCP credits, which gives them flexibility.

A common pattern is a move into Kubernetes, but “the zinger we talk about” is if Heroku was built in 2021, it would have been built on Kubernetes, Shim added.

“So we see ourselves as a successor to Heroku,” he said.

To be that bridge, the company will use the new funding to increase its engineering bandwidth with the goal of “becoming the de facto standard for all startups.” Shim said.

Porter’s platform went live in February, and in six months became the sixth-fastest growing open-source platform download on GitHub, said Ethan Batraski, partner at Venrock. He met the company through YC and was “super impressed with Rhee’s and Shim’s vision.

“Heroku has 100,000 developers, but I believe it has stagnated,” Batraski added. “Porter already has 100 startups on its platform. The growth they’ve seen — four or five times — is what you want to see at this stage.”

His firm has long focused on data infrastructure and is seeing the stack get more complex, saying “at the same time, more developers are wanting to build out an app over a week, and scale it to millions of users, but that takes people resources. With Kubernetes it can turn everyone into an expert developer without them knowing.”

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Introducing the Open Cap Table Coalition

On Tuesday, the Open Cap Table Coalition announced its launch through an inaugural Medium post. The goal of this project is to standardize startup capitalization table data as well as make it far more accessible, transparent and portable.

For those unfamiliar with a cap table, it’s a list of who owns your company’s securities, which includes your company shares, options and more. A clear and simple cap table should quickly indicate who owns what and how much of it they own. For a variety of reasons (sometimes inexperience or bad advice) too many equity holders often find companies’ capitalization information to be opaque and not easily accessible.

This is particularly important for the small percentage of startups that survive in the long term, as growth makes for far more complicated cap tables.

A critical part of good startup hygiene is to always have a clean and updated cap table. Since there is no set format and cap tables are generally not out in the open, they are often siloed rather than collaborative.

Cap tables are near and dear to me as someone who has advised hundreds of startups over the past two decades as the founder of an accelerator, a venture partner and a senior adviser at a government-funded startup launchpad. I have been on the shareholder side of the equation as well and can assure you that pretty much nothing destroys trust between shareholders and startups quicker than poor communication, especially around issues such as the current status of the cap table.

A critical part of good startup hygiene is to always have a clean and updated cap table.

I really like the idea of a cap table being an open corporate record, because the value proposition to the companies is clear. From the time a startup creates a cap table, it’s prone to inaccuracy, friction and mistakes. What this means in practice is that startups may spend money on cap-table-related issues that they should be spending on other things. From a legal process perspective, the law firm that is brought in to help with these issues has to deal with tedious back-end work, so the legal time isn’t high value for either the startup or the law firm.

The value proposition for equity holders is equally clear. All equity holders have a general and legal interest in a company’s capitalization information. They have the right to this information, which they may need for a variety of reasons (including, if things ever get really bad, an aggrieved shareholder action). So making this information clear and easily accessible is a service to equity holders and can also encourage more investment, especially from less experienced investors.

When I imagine what this project could become in the next couple of years, I think back to late 2013, when Y Combinator announced the SAFE (simple agreement for future equity). I think the SAFE is a good analogy here, as no one knew what it was and people wondered if this was a nice-to-have rather than a must-have for startups. But the end result was a dramatic improvement in the early-stage capital-raising process.

While the coalition’s founders include Morgan Stanley’s Shareworks, LTSE Software and Carta, it’s also heavy on Big Law, with Cooley, Goodwin Procter, Wilson Sonsini Goodrich & Rosati, Orrick, Gunderson Dettmer, Latham & Watkins, and Fenwick & West rounding out the group of 10 founding members.

So what’s the real motivation of seven law firms, which together saw revenue of over $10 billion in 2020 to collaborate on an open cap table product for startups? Deal flow.

Big Law has been trying for a couple of decades to build relationships with startups at the stage where it makes no sense for a startup to be dealing with a massive and expensive law firm. Their efforts to build startup programs have often fallen short and received mixed reviews. They have also been far too heavy on the self-serve and too light on the “we’re going to give you our regular Big Law level of services at a small fraction of the costs just in case you make it big and can one day pay our regular fees.” So these firms are trying to separate themselves from the rest of the Big Law pack by building this entrepreneur-friendly tech.

The coalition has already produced its initial version of the open cap table. The real question is whether this is going to be a big deal, as the SAFE was, or whether it’s going to be a vanity solution in search of a real problem. My best guess is that if this coalition gets all the relationships right, doesn’t get greedy and understands that there is a social good component at play here, this could be, reasonably quickly, as impactful as the SAFE was.

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Serverless Stack raises $1M for open-source application framework

Open-source framework startup Serverless Stack announced Friday that it raised $1 million in seed funding from a group of investors that includes Greylock Partners, SV Angel and Y Combinator.

The company was founded in 2017 by Jay V and Frank Wang in San Francisco, and they were part of Y Combinator’s 2021 winter batch.

Serverless Stack’s technology enables engineers to more easily build full-stack serverless apps. CEO V said he and Wang were working in this space for years with the aim of exposing it to a broader group of people.

While tooling around in the space, they determined that the ability to build serverless apps was not getting better, so they joined Y Combinator to hone their idea on how to make the process easier.

Here’s how the technology works: The open-source framework allows developers to test and make changes to their applications by directly connecting their local machines to the cloud. The problem with what V called an “old-school process” is that developers would upload their apps to the cloud, wait for it to run and then make any changes. Instead, Serverless Stack connects directly to the cloud for the ability to debug applications locally, he added.

Since its launch six months ago, Serverless Stack has grown to over 2,000 stars on GitHub and was downloaded more than 60,000 times.

Dalton Caldwell, managing director of YC, met V and Wang at the cohort and said he was “super impressed” because the pair were working in the space for a long time.

“These folks are experts — there are probably just half a dozen people who know as much as they do, as there aren’t that many people working on this technology,” Caldwell told TechCrunch. “The proof is in the pudding, and if they can get people to adopt it, like they did on GitHub so far, and keep that community engagement, that is my strongest signal of staying power.”

V has earmarked the new funding to expand the team, including hiring engineers to support new use cases.

Serverless initially gravitated toward specific use cases — APIs are now allowing its community to chime in and it is using that as a guide, V said. It recently announced more of a full-stack use case for building out APIs with a database and also building out the front end frameworks.

Ultimately, V’s roadmap includes building out more tools with a vision of getting Serverless Stack to the point where a developer can come on with an idea and take it all the way to an IPO using his platform.

“That’s why we want the community to drive the roadmap,” V told TechCrunch. “We are focused on what they are building and when they are in production, how they are managing it. Eventually, we will build out a dashboard to make it easier for them to manage all of their applications.”

 

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Founders: How well do you really understand seed-stage financing?

I’ve fundraised a lot. Tactically, fundraising is a skill like any other. You get better the more you do it. But practicing gets you nowhere if you don’t have a strong foundation in understanding a fundraising round’s core components.

As a founder, you will understand less than investors when it comes to fundraising. For investors, negotiating with founders is their full-time job. For founders, fundraising is just a small part of building a business. Understanding the basics of venture financing can help founders raise on better terms.

We’ll cover:

  • How financing works: SAFEs versus equity rounds.
  • How much to raise.
  • How to arrive at your valuation.

How financing works: SAFEs versus equity rounds

As a founder, you will understand less than investors when it comes to fundraising.

Venture financing takes place in rounds. The first stage is the pre-seed or seed round, then a Series A, then a Series B, then a Series C and so on. You can continue to raise funding until the company is profitable, gets acquired or goes public.

We will focus here on seed-stage funding — your very first funding round.

SAFEs

Post-money SAFEs are the most common way to raise funding. These documents are used by Y Combinator, angel investors and most early-stage funds. You should raise on post-money SAFEs using standard documents created by YC. Standard documents have consistent terms that have been drafted to be fair to both investors and founders.

By using the standard post-money SAFE, your negotiation can focus on the two terms that matter:

  1. Principal: The amount you want to raise per investor.
  2. Valuation cap: The value of your business.

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Yummy raises $4M, aims to be ‘super app of Venezuela’

Yummy, a Venezuela-based delivery app on a mission to create the super app for the country, announced Friday it raised $4 million in funding to expand its dark store delivery operations across Latin America.

Funding backers included Y Combinator, Tinder co-founder Justin Mateen, Canary, Hustle Fund, Necessary Ventures and the co-founders of TaskUs. The total investment includes pre-seeding capital raised in 2020.

“This appears to be a contrarian bet, but Yummy has quickly become the No. 1 super app in Venezuela and proven that the team can scale the business in a difficult territory,” Mateen said in a statement. “Now Vicente and the rest of the Yummy team will expand into more traditional markets with the necessary experience and support to overcome inevitable challenges that they will face.”

Vicente Zavarce, Yummy’s founder and CEO, launched the company in 2020 and is currently part of Y Combinator’s summer 2021 cohort. Born in Venezuela, Zavarce came to the U.S. for school and stayed to work in growth marketing at Postmates, Wayfair and Getaround before starting Yummy. Zavarce was a remote CEO over the past year, stuck in the U.S. due to travel restrictions, but said he is making the most of it.

Yummy’s app can be downloaded for free, and the company charges a delivery fee or merchant fee. In contrast to some of his food delivery competitors, Zavarce told TechCrunch Yummy’s fees are “the lowest in the market” so they do not affect the merchant’s ability to use the app.

Yummy order heat map. Image Credits: Yummy

The company is pulling together additional key components for its super app strategy, which includes launching a ridesharing vertical this year. Yummy has already connected more than 1,200 merchants with hundreds of thousands of customers.

And, over the past year the company completed more than 600,000 deliveries of food, groceries, alcohol and shopping. It reached $1 million in monthly gross merchandise volume while also growing 38% in revenue month over month.

Over the past eight years, the political and economic challenges faced by the country have led to its recent adoption of the U.S. dollar, Zavarce said. In some cases up to 70% of transactions are happening in dollars on the ground. He said this has protected the business against hyperinflation and ultimately created the opportunity for startups to begin operating in Venezuela.

Because of that, combined with more consumer technology innovation over the past decade, Zavarce said there is no reason why Venezuela should not have the best last-mile logistics. It’s there that Yummy has an opportunity to connect multiple vertices into a super app with little to no competition.

“Eventually, other players will enter, but because we have a super app, we already have an amazing frequency of usage,” he added. “We also already have exclusivity with 60% of the food delivery marketplace, which has enabled us to build a moat around the market. We believe we are the right people to execute on this and feel it is our responsibility to do it.”

Plans for the new funding include user acquisition — the company has close to 200,000 registered users already — and to expand in Peru and Chile by August. At the same time, Zavarce will spend some of that capital to attract more users across Venezuela. He also expects to be in Ecuador and Bolivia by the end of the year.

 

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Edtech startup Microverse raises $12.5M to bring income share agreements to the developing world

Edtech startup Microverse has tapped new venture funding in its quest to help train students across the globe to code through its online school that requires zero upfront cost, instead relying on an income-share agreement that kicks in when students find a job.

The startup tells TechCrunch it has closed a $12.5 million Series A led by Northzone with additional participation from General Catalyst, All Iron Ventures and a host of angel investors. We last covered the company after it had closed a bout of seed funding from General Catalyst and Y Combinator; this latest round brings the startup’s total funding to just under $16 million.

The company’s vision has seen added pandemic-era traction as larger tech companies have embraced remote work that spans geographic boundaries and time zones. Microverse has now brought English-speaking students from over 188 countries through its program.

Since we last chatted, CEO Ariel Camus says the startup has landed some 300 early graduates in positions at tech companies including Microsoft, VMWare and Huawei. The company says its has above a 95% employment rate for its students within six months of graduation so far, pushing past one of the bigger issues that income-share-agreement-based schools have had stateside — getting graduates employed.

Microverse does have notably less generous terms than counterparts like Lambda School when it comes to when students begin loan repayment, the terms of both are actually quite different, as noted in my previous article:

While Lambda School’s ISA terms require students to pay 17% of their monthly salary for 24 months once they begin earning above $50,000 annually — up to a maximum of $30,000, Microverse requires that graduates pay 15% of their salary once they begin making more than just $1,000 per month, though there is no cap on time, so students continue payments until they have repaid $15,000 in full. In both startups’ cases, students only repay if they are employed in a field related to what they studied, but with Microverse, ISAs never expire, so if you ever enter a job adjacent to your area of study, you are on the hook for repayments. Lambda School’s ISA taps out after five years of deferred repayments.

The startup has made efforts to streamline their online program since launch to ensure that students are being set up to succeed in the full-time, 10-month program. Part of Microverse’s efforts have included condensing lesson segments into shorter time frames to ensure students aren’t starting the program unless they have enough free time to commit. Camus says the startup is receiving thousands of applications per month, of which only a fraction are accepted in an effort to ensure that the small startup isn’t overcommitting itself early on. The startup estimates it will usher 1,000 students through its program this year.

The startup has big plans for the future, including working more closely with tech companies to ensure that students have easier access to job placement once they graduate.

“We have data now that the day we launch a partner program — which we haven’t done yet but we will eventually — it opens up the market by 5x,” Camus tells TechCrunch. “To get 10,000 students per year in a world where 90% of the world’s population doesn’t have access to higher education — it’s not going to be that hard, to be honest, I’m not too worried.”

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FamPay, a fintech aimed at teens in India, raises $38 million

How big is the market in India for a neobank aimed at teenagers? Scores of high-profile investors are backing a startup to find out.

Bangalore-based FamPay said on Wednesday it has raised $38 million in its Series A round led by Elevation Capital. General Catalyst, Rocketship VC, Greenoaks Capital and existing investors Sequoia Capital India, Y Combinator, Global Founders Capital and Venture Highway also participated in the new round, which brings FamPay’s to-date raise to $42.7 million.

TechCrunch reported early this month that FamPay was in talks with Elevation Capital to raise a new round.

Founded by Sambhav Jain and Kush Taneja (pictured above) — both of whom graduated from Indian Institute of Technology, Roorkee in 2019 — FamPay enables teenagers to make online and offline payments.

The thesis behind the startup, said Jain in an interview with TechCrunch, is to provide financial literacy to teenagers, who additionally have limited options to open a bank account in India at a young age. Through gamification, the startup said it’s making lessons about money fun for youngsters.

Unlike in the U.S., where it’s common for teenagers to get jobs at restaurants and other places and understand how to handle money at a young age, a similar tradition doesn’t exist in India.

After gathering the consent from parents, FamPay provides teenagers with an app to make online purchases, as well as plastic cards — the only numberless card of its kind in the country — for offline transactions. Parents credit money to their children’s FamPay accounts and get to keep track of high-ticket spendings.

In other markets, including the U.S., a number of startups including Greenlight, Step and Till Financial are chasing to serve the teenagers, but in India, there currently is no startup looking to solve the financial access problem for teenagers, said Mridul Arora, a partner at Elevation Capital, in an interview with TechCrunch.

It could prove to be a good issue to solve — India has the largest adolescent population in the world.

“If you’re able to serve them at a young age, over a course of time, you stand to become their go-to product for a lot of things,” Arora said. “FamPay is serving a population that is very attractive and at the same time underserved.”

The current offerings of FamPay are just the beginning, said Jain. Eventually the startup wishes to provide a range of services and serve as a neobank for youngsters to retain them with the platform forever, he said, though he didn’t wish to share currently what those services might be.

Image Credits: FamPay

Teens represent the “most tech-savvy generation, as they haven’t seen a world without the internet,” he said. “They adapt to technology faster than any other target audience and their first exposure with the internet comes from the likes of Instagram and Netflix. This leads to higher expectations from the products that they prefer to use. We are unique in approaching banking from a whole new lens with our recipe of community and gamification to match the Gen Z vibe.”

“I don’t look at FamPay just as a payments service. If the team is able to execute this, FamPay can become a very powerful gateway product to teenagers in India and their financial life. It can become a neobank, and it also has the opportunity to do something around social, community and commerce,” said Arora.

During their college life, Jain and Taneja collaborated and built an app and worked at a number of startups, including social network ShareChat, logistics firm Rivigo and video streaming service Hotstar. Jain said their work with startups in the early days paved the idea to explore a future in this ecosystem.

Prior to arriving at FamPay, Jain said the duo had thought about several more ideas for a startup. The early days of FamPay were uniquely challenging to the founders, who had to convince their parents about their decision to do a startup rather than joining firms or startups as had most of their peers from college. Until being selected by Y Combinator, Jain said he didn’t even fully understand a cap table and dilutions.

He credited entrepreneurs such as Kunal Shah (founder of CRED) and Amrish Rau (CEO of Pine Labs) for being generous with their time and guidance. They also wrote some of the earliest checks to the startup.

The startup, which has amassed over 2 million registered users, plans to deploy the fresh capital to expand its user base and product offerings, and hire engineers. It is also looking for people to join its leadership team, said Jain.

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