Author: azeeadmin

13 Jul 2020

BigCommerce files to go public

As expected, BigCommerce has filed to go public. The Austin, Texas, based e-commerce company raised over $200 million while private. The company’s IPO filing lists a $100 million placeholder figure for its IPO raise, giving us directional indication that this IPO will be in the lower, and not upper, nine-figure range.

BigCommerce, similar to public market darling Shopify, provides e-commerce services to merchants. Given how enamored public investors are with its Canadian rival, the timing of BigCommerce’s debut is utterly unsurprising and is prima facie intelligent.

Of course, we’ll know more when it prices. Today, however, the timing appears fortuitous.

The numbers

BigCommerce is a SaaS business, meaning that it sells a digital service for a recurring payment. For more on how it derives revenue from customers, head here. For our purposes what matters is that public investors will classify it along with a very popular — today’s trading notwithstanding — market segment.

Starting with broad strokes, here’s how the company performed in 2019 compared to 2018, and Q1 2020 in contrast to Q1 2019:

  • In 2019, BigCommerce’s revenue grew to $112.1 million, a gain of around 22% from its 2018 result of $91.9 million.
  • In Q1 2020, BigCommerce’s revenue grew to $33.2 million, up around 30% from its Q1 2019 result of $25.6 million.

BigCommerce didn’t grow too quickly in 2019, but its Q1 2020 expansion pace is much better. BigCommerce will file an S-1/A with more information in Q2 2020, we expect; it can’t go public without sharing more about its recent financial performance.

If the company’s revenue growth acceleration continues in the most recent period — bearing in mind that e-commerce as a segment has proven attractive to many businesses during the COVID-19 pandemic — BigCommerce’s IPO timing would appear even more intelligent than it did at first blush. Investors love growth acceleration.

Moving from revenue growth to revenue quality, BigCommerce’s Q1 2020 gross margins came in at 77.5%, a solid SaaS result. In Q1 2019 its gross margin was 76.8%, a slightly worse figure. Still, improving gross margins are popular as they indicate that future cash flows will grow at a faster clip than revenues, all else held equal.

In 2018 BigCommerce lost $38.9 million on a GAAP basis. Its net loss expanded modestly to $42.6 million in 2020, a larger dollar figure in gross terms, but a slimmer percent of its yearly top line. You can read those results however you’d like. In Q1 2020, however, things got better, as the company’s GAAP net loss fell to $4 million from its year-ago Q1 result of $10.5 million.

The BigCommerce big commerce business is growing more slowly than I had anticipated, but its overall operational health is better than I expected.

A few other notes, before we tear deeper into its S-1 filing tomorrow morning. BigCommerce’s adjusted EBITDA, a metric that gives a distorted, partial view of a company’s profitability, improved along similar lines to its net income, falling from -$9.2 million in Q1 2019 to -$5.7 million in Q1 2020.

The company’s cash flow is, akin to its adjusted EBITDA, worse than its net loss figures would have you guess. BigCommerce’s operating activities consumed $10 million in Q1 2020, an improvement from its Q1 2019 operating cash burn of $11.1 million.

The company is further in debt than many SaaS companies, but not so far as to be a problem. BigCommerce’s long-term debt, net of its current portion, was just over $69 million at the end of Q1 2020. It’s not a nice figure, per se, but it is one small enough that a good IPO haul could sharply reduce while still providing good amounts of working capital for the business.

Investors listed in its IPO document include Revolution, General Catalyst, GGV Capital, and SoftBank.

13 Jul 2020

Snapchat tests TikTok-style navigation for exploring public content

Snapchat could be gearing up to more directly challenge TikTok. The company confirmed it’s testing a new experience that allows users to move through Snapchat’s public content with a vertical swiping motion — a gesture that’s been popularized by TikTok, where it allows users to advance between videos. Snapchat says the feature is one of its experiments in exploring different, immersive visual formats for community content.

The test is focused on content that’s published publicly to Snapchat Discover, not your friends’ private Stories. But because Stories can have multiple parts, users will still tap to advance through the Story, as before. But in the new experiment, a horizontal swiping motion — either to the left or right — will exit the experience, instead of moving you between Stories, as before.

For anyone who spends much of their time on TikTok, the vertical swipe now feels like a more natural way to move through videos. And it’s almost disorienting to return to Snapchat or other apps where the horizontal swipe is used.

This test was first spotted by social media consultant Matt Navarra, citing a post from Twitter user @artb2668. One photo being shared shows the pop-up in the app which explains how to navigate the new experience, while a video gives you an idea for the feel.

Snapchat declined to offer specific details about the test, beyond clarifying it’s in the early stages and only viewable by a very small percentage of its user base.

“We’re always experimenting with new ways to bring immersive and engaging content to our mobile-first Snapchat community,” a spokesperson told TechCrunch.

The timing of Snap’s test is interesting, of course.

The Trump administration is currently threatening to ban TikTok in the U.S. due to due to the app’s ties to China and fears that Americans’ private user data will end up in the hands of China’s Communist Party. The app has already been banned in India for similar reasons. On Friday, Amazon instructed its employees to remove the app from their company-issued smartphones, before retracting that demand around five hours later. U.S. military branches have also blocked access to the app, following a Pentagon warning earlier this year. Meanwhile, Musical.ly (the app that became TikTok) has had its acquisition by China’s ByteDance come under a U.S. national security review. 

Amid the threat of TikTok’s removal, rival social apps have climbed the app store charts, including Byte, Likee, Triller, and Dubsmash. Instagram, meanwhile, has been expanding its TikTok-like feature, Reels, to new markets, including India. Even YouTube began testing a TikTok-like experience in recent days.

It’s no surprise, then, that Snapchat would want to do the same among its own user base, as well, given that the TikTok U.S. audience could be soon up for grabs.

The test also shows how influential TikTok has become in terms of dictating the social app user experience. Where Snapchat once had its concept for short-form Stories stolen by nearly every other social app, including most notably Instagram, it’s now the swipeable TikTok vertical feed that everyone is copying.

13 Jul 2020

Mighty Health created a wellness app with older adults top of mind

Virtual classes might make it easier to work out anywhere, anytime, but not for anyone. Mainstream fitness tech often targets the young and fit, in advertisements and cardio-heavy exercises. It effectively excludes aging adults from participating.

This gap between mainstream fitness and elders is where Mighty Health, a Y Combinator graduate, comes in.

Mighty Health has created a nutrition and fitness wellness app that is tailored to older adults who might have achy hips or joint problems. Today, the San Francisco-based startup has announced it raised $2.8 million in funding by Y Combinator, NextView Ventures, RRE Ventures, Liquid2 Ventures, Soma Capital and more.

Founder and CEO James Li is the child of immigrants, a detail he says helped him lean into entrepreneurship. He had the idea for Mighty Health after his father was rushed to the hospital for emergency open-heart surgery.

“Growing up, we can often think of our parents as invincible — they look after you and take care of you, and you usually don’t worry too much about them,” Li said. His dad survived the surgery, and Li thought about the evolving health needs and limitations of folks over 50 years old. He teamed up with co-founder Dr. Bernard Chang, the youngest-ever ED doctor to receive a top-tier NIH grant and the vice chair of research at Columbia University Medical Center, to create Mighty Health.

Mighty Health’s product is focused on three things: live coaching; content focused on nutrition, preventative checkups and workouts; and celebrations that let family members tune into their loved ones’ achievements.

The app has inclusivity built into its functionality. Everyday, a user logs in and gets a set of three to five tasks to complete, distributed among nutrition, exercise and workouts. The workouts are pre-recorded videos with trainers that have focused on the over-50 population. Think indoor cardio sets focused on being kinder to joints or lower her impacts.

Image Credits: Mighty Health

One customer, Elizabeth, is a 56-year-old mother who joined Mighty Health after suffering a cardiac incident. The app got her to start walking 9,000 steps a day, lose weigh, lower cholesterol and, best of all, discover a love for a vegetable she had recently written off: brussels sprouts.

Mighty Health’s other core focus, beyond fitness, is nutrition. The app pairs users with a coach to help them create healthy habits around nutrition and lifestyle. The coaching is done through text message. Li says this was intentional because in the early days of Mighty Health, he saw that coaching in-app was difficult for users to navigate.

Image Credits: Mighty Health

“You have to meet them in the middle where they are,” Li said. The live coaching is also met with phone calls, although 90% of coach interactions are text-message based.

The nutrition program also accounts for a diverse user base. Mighty Health chose not to offer or push recipes upon members, unlike a lot of other applications, because all countries and cultures might not find generic recipes accessible.

“Instead, we focus on the ingredient level,” he said. “We send them ingredients that they can piece together however they like at home in the way that they cook their cultural meals.”

The company offers a free seven-day trail, followed by a membership fee of $20 per month. It’s also having discussions with a number of health insurers to offer Mighty Health as a benefit.

With the new capital, the startup hired a few engineers and a designer to build out product integrations with fitness trackers, plus add new content. For now, Li sees his father’s progress with pride.

“Though I’m sure he sometimes thinks I just went from nagging him directly to nagging him through my product, he’s been eating healthier and exercising nearly every day,” Li said. So far, his father has lost 25 pounds.

13 Jul 2020

Former Tinder VP Jeff Morris Jr. opens up Product Club, an accelerator meant to stay small and focused

Startup accelerators tend to grow the size of each new class over time, as more of their portfolio companies find exits, their network of mentors expands, and they find new ways to scale things up. The most recognized example of this is almost certainly Y Combinator, which started with a group of just eight companies in 2005 and has since grown to over 150 companies per recent batch.

VC and former Tinder VP Jeff Morris Jr. is taking a different approach with his new accelerator, Product Club: starting small, and staying small.

The first batch of Product Club companies will be made up of just three companies. While Morris tells me this might grow a bit over time, he doesn’t see it expanding drastically. “I imagine it being up to ten,” he says. “But no more.”

“I’ve spoken to a lot of people who’ve built accelerators and have said ‘There’s no way you’ll find a winner with class sizes that small’,” Morris tells me. “But I’m kind of okay with that if it means we can be more hands-on.”

Product Club will invest $100k in each company, taking 5% equity in return. In addition to investment, the program will provide one-on-one mentorship with a different mentor each week, with each session “100% focused on product development.”

Though new, Product Club has already built up a pretty notable roster of mentors, including:

  • Danny Trinh (Head of Design at Zenly)
  • Merci Victoria Grace (Investor at Lightspeed, formerly Head of Growth at Slack)
  • Scott Belsky (Founder of Behance, CPO at Adobe)
  • Sriram Krishnan (Investor, formerly led consumer product teams at Twitter)
  • Manik Gupta (Investor, former Chief Product Officer at Uber)
  • Brian Norgard (Investor, former CPO at Tinder)
  • Jules Walter (Product monetization at Slack, co-founder of the BlackPM network)
  • Josh Elman (Board Partner at Greylock, Investor, former VP of Product at Robinhood)

They’ve also partnered with a handful of product designers who will provide hands-on help to the companies on things like branding and UX.

Morris tells me that he intends for Product Club to be a good bit more transparent than other accelerators traditionally have been. Rather than keeping things largely under wraps until Demo Day, he says, they’re “just going to tell everybody from the start who’s in each batch,” with the intent of doing things like founder office hours with users, with product development and changes happening mostly out in the open “almost like a change log.” They’ll have a Demo Day for investors, but it’ll be more of an overview and less of a reveal.

Product Club will operate as part of Chapter One, the early stage seed fund that Morris founded in 2017. Prior to becoming an investor, Morris led the revenue team at Tinder where he built things like Tinder Gold — the dating app’s subscription tier which lets you see who “liked” you without you first having to swipe. He was also the Director of Product Growth at Lambda School for a few months prior to parting ways with the company to focus on investing full time.

The program’s first session (the Summer 2020 batch) is scheduled to start on August 3rd, running for a total of ten weeks. They’re accepting applications immediately, with the deadline to apply currently set for July 19th. The program will be entirely remote, so applications are open globally.

13 Jul 2020

SaaS and cloud stocks finally give back ground

After a heated run, SaaS and cloud stocks dipped sharply during regular trading on Monday.

According to the category-tracking Bessemer cloud index, public SaaS and cloud stocks dropped around 6.5% today, a material blow to the value of some of the world’s most highly valued companies, measured by sector-averaged revenue multiples.

After recovering all their COVID-19-related losses earlier this year, SaaS and cloud stocks kept on rising, reaching new all-time highs with regularity. But earnings season is starting, meaning that the value of modern software and digital infrastructure companies will soon be tested against Q2 results — results that were recorded fully during the global pandemic.

To hear bulls — both private and public — tell the story, COVID-19 and its ensuing workplace disruptions have provided software companies with a huge boon. Namely, that customers current and future have radically changed their procurement models and will need more software solutions, more quickly, than they previously anticipated. (Stay tuned to The Exchange for more on this later in the week.)

The thought that there are more and better customers coming for SaaS and cloud companies made them relative safe havens in otherwise turbulent public markets; while other industries had uncertain demand curves, the thinking went, software companies were being pushed forward by an accelerating secular shift.

Today, however, the broader markets slipped from early-day positions of strength while SaaS and cloud shares dropped sharply. Prior patterns in investor behavior didn’t hold up, in other words.

Why today brought such sharp selling is not clear. No more, really, than reasons for prior days’ gains were clear at the time. Profit taking? Rotation to other sectors? Whatever you want to ascribe to the day’s declines you can make stick.

For our purposes here at TechCrunch, the dropping share prices of public software companies serves as an anti-signal for late-stage valuations in SaaS startups, and a general headwind toward venture investors making more early-stage bets in the sector. Of course, one day doesn’t change the game. But several days of sharp losses could begin to change sentiment, and days when shares of modern software companies drop by 6% are few and far between.

Earnings are next, but for many companies in the SaaS and cloud world, reporting their results just got easier. When expectations drop, everyone loses a bit of worry, right?

13 Jul 2020

A pledge to unite international students and tech

I count myself blessed to have been contributing my weekly Dear Sophie articles to Extra Crunch since the beginning of 2020. The inspiration for the column struck last December after I returned to the Bay Area from speaking at TechCrunch Disrupt. I was doing my hair, and I remember feeling the spark of the idea begin to take shape in my mind. Before I fully understood the shape of the thought, I knew it was already resonating in my heart.

The last three-and-a-half years have been hell for immigrants and hell for immigration lawyers. Probably a lot of caring government immigration adjudicators have felt it, too. But it’s like an abusive relationship: The people who keep getting knocked around by the administration are completely powerless and literally have no voice, as they are not entitled to the right to vote. Many immigrants live in fear that the cost of opening their mouths would be retaliation and deportation. So we need a new paradigm.

The latest insult to injury affecting high-skilled immigration, in the wake of consular closures and the the H-1B ban, is last week’s announcement that raises the possibility of the potential deportation of hundreds of thousands of international students currently enrolled in U.S. higher ed for taking online-only classes during COVID-19.

Even with litigation by Harvard, MIT and Johns Hopkins, and some programs offering qualifying courses for students to maintain enrollment, the clock is ticking. My firm is inundated by requests from students both local and even abroad, struggling to find a way to continue to simply “be” in the U.S. legally.

Many others are desperate to find employment to remain in status in the U.S. on OPT and STEM OPT work permits. Working visas such as the H-1B, a common option for many recent graduates, are also disintegrating. So many are scared that they could be forced to leave, as they have been now, for years.

Why is it hard to leave? Well, think about it. Immigrants are people. Your friends, your neighbors. Like you. Some international grad students who have been here for almost a decade completing cutting-edge research put down roots and might be pregnant now or have U.S. citizen children, not to mention, potentially have been working for decades for lucrative job opportunities ahead.

And then, beyond the obvious COVID-19 health concerns about departing the U.S. on international flights in the midst of a pandemic, some home countries aren’t even accepting citizens immediately and returning students may face long waits for flights with potentially exorbitant fees. Many students, families and university administrators around the country and around the world are scared.

So many immigrants are trying their best, but under this administration it feels like a Sisyphean task — never enough — as the rock keeps rolling back down the hill.

All last week I found myself fielding The Zoom Calls of Panic: the brilliant UX designer who tells me he’s in purgatory; the accomplished Ph.D. who laments that “the U.S. is the only country that won’t take me after I get my U.S. Ph.D.”; the amazing business woman crying that she needs an extraordinary ability visa not for herself but so that she doesn’t disappoint all the families of all the people for whom she has created jobs in the United States.

Yet also, last week, there were so many glimmers of hope, opportunities for my clients to make decisions, and chances I got to take to show somebody that they can have choices, routes, strategies and hope.

One of the most inspiring things was all of the employers who have been coming out of the woodwork to support international students and grads to sponsor them for visas. Five years ago, that was simply a matter of routine business necessity in a system that was predictable, secure, navigable and easily accomplished in volume. Now, meeting a U.S. employer excited to sponsor international students as an act of solidarity gives me chills as an act of courageous heroism.

One of the events that almost moved me to tears last week was when I stayed up late one night and dragged myself to put on makeup after I finally got my elementary school kids to bed. Bleary, I provided a rambling 40-minute YouTube live stream interpreting the F-1 visa ban for international students after they had requested this from me on LinkedIn saying “In Sophie We Trust” (no pressure!). During the live stream, I received a comment from David Valverde, founder of Pranos.ai. He said that he had been an international student and that he would pledge to consider international students for job openings at his rapidly scaling startup.

We stayed in touch throughout the week on LinkedIn, and every time a stranded international student with a tech background who needed a job contacted me, I sent them David’s way. We finally connected on Friday, and somehow egged each other on to commit to volunteering in a self-imposed 2.5-day “hackathon for social good.”

This weekend’s result? We proudly announce the Community for Global Innovation (CFGI), a movement centralizing how companies and individuals around the world can stand in solidarity with international students and the belief that everybody deserves a chance to succeed.

CFGI is a constellation of top startups, VCs, professionals, nonprofits, international students and grads. We pledge to support international students, create awareness and effect change.

Through the platform, companies take the CFGI Pledge to support international students: “If you’re international, no problem. In our team, everybody has a chance.”

We also teamed up with Welcoming America, a leading U.S. nonprofit, accepting donations to make the U.S. more inclusive toward immigrants and all residents.

We’re actively seeking the support of volunteers, corporate donors and community members such as international startup founders who know it’s time to share their stories.

Growing up as the daughter of an immigration attorney and an immigrant, I know that innovation can truly come from anywhere. Diversity is critical for innovation.

The technology we rely on every day was often invented and created by people who had the courage to leave their homeland and start a new life. We all benefit as they continually create more jobs in the world as we move to a new global interconnected economy.

Life is not a zero-sum game: When we can come together to support one person to succeed, it benefits us all.

Everybody deserves a chance.

As a result of CFGI, I’m blown away by what David is doing, and I’m so excited to see how others contribute. David’s company Pranos.ai is a revolutionary mass media platform that converts any window into a transparent digital HD display. David told me:

“Especially in an early-stage technology company, every new hire has an incredible effect on the company’s destiny. Hiring highly skilled top-talent at the beginning is critical to how Pranos.ai will create many hundreds of thousands, if not millions, of jobs globally through the growth of the gig economy.”

Pranos.ai was the first company to take the CFGI Pledge. They are open to considering any candidate based on merit, regardless of immigration status. David is proud to recruit a diverse team and stand in solidarity with international students.

pranos.ai

Image Credits: pranos.ai

And why do I care about all of this so much?

I know what it’s like to be on the outside. Even though I practiced as an immigration attorney right out of law school, I gave up my career for many years to take care of my two small children.

I experienced postpartum depression and things snowballed as my dad, who was my dear mentor and friend, passed away unexpectedly and then my marriage came to an end. I wondered how I could survive in Silicon Valley as a single mom without a professional network.

Imposter syndrome shook me to my core. I longed to be an entrepreneur but I found reasons that it seemed impossible, like that I didn’t know the slightest bit about coding.

So, I decided to serve others. I began my immigration law firm out of my kitchen and met clients at a Peet’s on Castro Street in downtown Mountain View that has since turned into apartments.

I offered pro bono immigration services to people facing deportation who had experienced persecution based on their sexuality and individuals who had experienced domestic violence. I thought, “Well, at least I can support others.”

Little did I know that my clients were actually the ones supporting me: to believe in myself and create a new life. I’m inspired by the amazing courage of immigrants and the grit and tenacity of everybody who has the courage to follow their dreams.

I’m delighted by the access to information and spread of knowledge that we’ve all been able to pull off so far with “Dear Sophie.”

And now CFGI is here, where companies can take the pledge so they can be attractive to the world’s best and brightest who will know that hiring decisions are based on merit.

I’m also thrilled to see what will come next.

I stand here in deep appreciation of everybody who comes together in love and support of one’s neighbors. Because we all know, this is actually a very small, lovely blue dot in the universe, and we are all neighbors. The lines on the map that divide us that we call “walls” don’t actually separate the human spirit, or love, or ideas, or even germs, as we’ve all so keenly learned.

With so many global challenges and opportunities, I understand that our immigration struggles are simply a microcosm of so many things, and we can’t and won’t go back to the way things were.

We here who are privileged enough to live in Silicon Valley know how fortunate we are. This is where the future is being created, where the veil is thin between thoughts and things. Here, ideas rapidly come into creation and reality.

Here, we see each other on eye-level. We seek out challenge as opportunity. And we know that one focused person is more powerful than a million who are not, so innovation can come from anywhere, and one person can change the world.

So maybe here, on this leading-edge outpost, between the San Andreas fault and the crashing waves of the Pacific, we have an opportunity to take a stand:

We believe that everybody should have a chance to do well. Let’s start by standing in solidarity with international students and graduates through CFGI. And since what benefits one of us benefits us all, perhaps with the growing momentum, we can support others, such as children in immigration jail, asylum seekers, Dreamers and everybody else who deserves a chance.

Because, but for the grace of God, there could have been born I.

I am thrilled to announce CFGI. Remember, life is not a zero-sum game. If we can come together in love to support just one person, that ripples out and benefits us all.

I hope you’ll join me.


Learn how to make immigration work for you at Early Stage where immigration expert Sophie Alcorn will troubleshoot the many snags that can affect early-stage startups that are trying to bring talent into the country. Buy your tickets now. 

Read “Dear Sophie” on Extra Crunch; use promo code ALCORN to purchase a one or two-year subscription for 50% off.

13 Jul 2020

FlexJobs CEO Sara Sutton: What newly remote companies tend to get right/wrong

Over the last few months, just about any tech company that can go remote has gone remote.

Are companies adopting remote for the long haul, or is it just a holdover until they can get people back in the office? What are newly remote companies getting wrong or right in the transition? If a company is going to be sticking with a remote workforce, what can they do to make their roles more enticing and to build a better culture?

FlexJobs CEO Sara Sutton has been thinking about remote work for longer than most. She founded FlexJobs in 2007 — at a time when she herself was looking for a more flexible job — as a platform tailored specifically for jobs that didn’t keep you in an office all day. In 2015 she also founded Remote.co, a knowledge base for remote companies and employees to share the lessons they’ve learned along the way.

I recently got a chance to chat with Sara about her views and insights on remote work. Here’s the transcript of our chat, lightly edited for brevity and clarity:

TechCrunch: Can you tell us a bit about what FlexJobs does?

Sara Sutton: We help people find remote and other kinds of flexible jobs — remote is predominantly the interest for our job seekers. We curate [these jobs]; we really go to great lengths to screen them and make sure that they are viable, professional jobs. No scams, and we don’t allow MLMs, commission-only, or any other kind of lower quality jobs. All of our jobs have some clear professional path associated with them.

FlexJobs itself is a remote company, is that right?

Yes! FlexJobs has been remote for over 13 years — since we started. We’ve loved it, and it’s been amazing to see the field grow. We’re happy to have been able to contribute to some of it, in terms of sharing knowledge and paying it forward.

How big is your team?

About 100.

Where is everybody? Mostly U.S., or all over the world?

Primarily U.S., but we’re all over.

What made you decide to go remote in the first place? 13 years ago … that’s way before most people were doing remote.

A little bit of history on me: This is my second time starting a job company. I actually started the first online entry level job service back in ’95. I dropped out of Berkeley and started that site really early on. We sold that to Korn Ferry International in 2000, 2001. So I am not your average job seeker, I guess I’d put it. My history in the space is quite deep.

Fast forward to when I was looking for a flexible job — my personal reason was that I was pregnant with my first child, but I wanted something that would allow me to stay in line with my career path but also have the flexibility to be the kind of parent that I wanted, which was to be a little more present.

For me, it was my own personal search. When I started looking at the market of what was out there, I was shocked to find how difficult it was to find these needle-in-a-haystack jobs. There was a lot of interest in them … but most of them were very low quality, or hard to find, or buried under other jobs. There were about 20 different keywords to find these types of jobs — work from home, work at home, remote, distributed, anywhere, virtual, etc. 

It was pretty confusing for a job seeker. I wanted to solve that pain point and create a high-quality resource that you trusted to help people find these jobs faster, easier and more safely.

But from the very beginning I was really keenly aware that I didn’t want … I identified that remote work was not just for working women or mothers in particular. This was really something that was wanted and needed by all kinds of people and that also has a ton of benefits for employers. I wanted to keep it quite broad in terms of who our audience was, as well as the industries we served.

Obviously the whole remote landscape has kind of shifted in the last couple of months. Have things changed much for FlexJobs?

It’s been … a very busy time.

Although all of this is absolutely not the reason we would’ve wanted remote work to be thrust into the forefront of how we work, it has also been a big opportunity for employers to learn how and why it’s necessary and beneficial to their organization from productivity, engagement and … quite honestly, insurance standpoints — meaning that you can ensure your company can remain productive and engaged during times of crisis or during times when you need to be more flexible with how people work.

It’s been exciting in that sense. It’s been, I believe, a tipping point. I do believe that all responsible, forward-thinking companies will have to integrate some element of remote work moving forward just because of this experience. It’s shaved probably 10, 15 years off of the adoption cycle as we’d seen the trend going.

Does it seem like most companies you’re seeing are in it for the long haul?

It’s a good question. I think that many organizations who have been … let’s say, dragging their feet aggressively to not adopt remote work are now using it and they’re evangelizing it and saying they’re fully committed.

I would say I’m a little skeptical on some of that, because as quickly as you go in, you can come out.

But I do think that employers have seen that this impacts their financial bottom line, and that will make this a more staying trend that they have to incorporate into their work forces moving forward. 

I don’t think it’s fully going to swing back, but I do think there will be a pendulum swing a bit … you’ll see some companies, who if they don’t keep it at the front of their mind, will let it go by the wayside. 

Of the companies I’ve spoken to, or seen making announcements recently, there’s kind of a mix. Some are saying, “We’re happy to stay fully remote for the long haul!” Then there’s those that say, “Oh, you know, we’re going to kind of mix it. We’ll let people go back to the office, and let other people decide to stay remote.”

Does that second option actually … work? Does a mix of remote and co-located employees tend to work out?

A hybridized workforce can absolutely work, but it does take intentionality. 

Of the scenarios — being all on-site, all remote or hybridizing — it’s probably the most challenging, because you have to address to some degree the balancing out of what’s included in an office, and making sure that your remote workers are also included.

In that, though, is a really interesting and important opportunity with inclusiveness. For example, a lot of Fortune 500s we’ve spoken with, for example — when they go remote, they’ll almost treat all workers as remote workers. For example: if you’re having a meeting and one person can’t be there, you’d generally all meet on video [with individual cameras], instead of having one person up on the big screen who can kinda hear, kinda can’t.

The other beautiful thing about remote work is it’s not one-size fits all. It’s something that truly, depending on the makeup of your team and the communication styles of your team, you can customize to work best for you. But in customizing, you have to pay attention to what that means; you have to ask questions, you have to get feedback, you have to measure results. I think ultimately those are best practices and things we should be doing anyway, whether you’re in an office or not — but it does force the issues, a little bit, when you have a hybridized situation.

When it comes to benefits, for example. It’s a great opportunity to think [about] benefits you have for your in-office workers, to make sure that they’re inclusive for everyone. Something like, for example, Happy Hour Fridays. That might sound inclusive … but it’s actually not. If you’re a working parent and you have to rush home to the babysitter, it’s inherently leaving people out. Or you have a long commute and have to catch that train … it’s very different things for different people. Remote benefits can be much more equally accessible.

What are some of those benefits that those looking for remote roles tend to look for? Silicon Valley tech companies are known for these kind of … almost silly “perks.” “We have pool tables and candy dispensers!” and whatnot — things that are ultimately fun, but no one’s really looking for that. What are the perks that remote workers actually looking for?

It’s a mix. My first company had a pingpong table back in ’97, or basketball hoops in a different room … you have these really fun things, and they’re buzzy and great … but how many people actually use them?

When you look at remote work, the kinds of benefits people are looking for are probably around the home office setup — some kind of stipend, or [provided] technology setup. It depends on what you’re doing and what the role is — maybe it’s a dual monitor, but if you’re a traveler, or a “digital nomad,” maybe you’ll need a different setup, something you can take with you. Some sort of tech stipend for all that can be very helpful.

We also do a lot of flexible scheduling. That’s something thats largely bucketed into benefits historically, but it’s something that can be incredibly beneficial for both the employer and the worker.

And we do fun things. People get birthdays off, we send flowers for people’s birthdays. Go through a conscientious effort to find the best parts of the culture or benefits of an office and think about how those can translate into a remote environment. For example … on Halloween, I loved going over to someone’s desk, grabbing a little bit of their favorite candy  — so now when people on-ramp, we ask a lot of questions, and one of them is “What’s your favorite candy?” Come Halloween, we’ll send out little candy care packages for everybody. Or for team meetings, we’ll do pizza parties sometimes, and deliver pizzas right to people’s doors. It’s different versions, sure, but there are things you can do to make people feel included and very special.

We’ve been honored to have won Outdoor magazine’s Top 50 places to work last year, and several culture awards from other organizations. Creating culture and making people feel special and valued as part of the compensation package, but also as a part of who they are … it’s really important. And it’s very, very possible with remote work.

What tools does you use as a company? What is FlexJobs tool stack?

There’s a bunch of different ones. Some teams use Slack very heavily, and we use JIRA for project management. We’ve used Sococo over the years, which is like an architect schema of an office building, essentially; you can see who’s in what [virtual] office, and then you can similarly just click on their office and, say, knock on the door. I’d hear a knock on my door, and say “Come on in.” That was something we’ve been using even pre-Slack. Zoom we’ve used for a long time.

Are there any gaps in the toolset that you’re seeing out there? Are there tools that don’t exist that remote companies could really use?

What I would suspect is that there are tools that exist that we’re not even necessarily up on yet.

I’m just testing out Workona recently — a tab management system. That’s one thing: having 900 tabs and never being able to find things.

Overall we’ve really gotten to a place where we’re always looking for newer and better. But it’s really not just about only doing new/better; it’s about finding what’s best for your team.

The flip side of all these [new] tools and platforms can be creep. You don’t want to have so many different platforms that all different kinds of teams are using.

I know some companies mandate, you know, you use this project manager, everyone uses this project management tool. We don’t go that far; we have some teams that use Trello, some teams that use JIRA, some that used to use Basecamp. But we do try to reassess every once in a while — internal reviewing and assessing so that you don’t have overlapping and unnecessary costs.

One thing I’ve heard as a common challenge from founders of remote companies is that when they put a new role out there … just the sheer number of applications that they get. It’s a good problem to have, I guess, but it’s still a challenge. When you’re staring at five or six hundred applications for one role, how do you even start to narrow it down?

One of the goals of FlexJob is that if you post a job on here, you actually get fewer but higher quality candidates. Because we’re a low-cost subscription service, our job seekers are more invested and a little bit higher quality in general.

That being said: Be really clear in what you’re looking for and have that scorecard concept. Did the jobseeker follow every single instruction on the application? I really look at the beginning, because if a candidate isn’t going to put 110% forward on the application, what kind of employee are they going to be?

Beyond that, have different tests very early on in the process. For the first … you know, 50% that get to that mark, give them some sort of simple task. Not-a-heavy-ask at all, maybe ten minutes. It just kind of helps filter it down for us before we get to the interview stages where things are a little more in-depth and time consuming.

It’s important to look at your hiring process. You know, it’s interesting: Right now, with so many people doing remote work, I’ve actually done more video calls in the last three months than I’ve had in the last 13 years. We don’t use video internally as a primary default. We use the phone and screen sharing, and I think there are a lot of pros to that. I understand why people are using video so heavily right now particularly … but with interviewing, we don’t use video unless there’s a really specific need for it, like it’s an on-camera role or something that’s very public facing. 

It’s something to consider, because you hear a lot more [on the phone]. There’s less distraction. There’s something really valuable about the phone — I’m trying to encourage everyone who is a little overdosed on video to remember that there’s other mediums of communication.

I get that. If I’m in a meeting and I can just be on voice, my insights and ideas tend to be 1000x better because I’m not focusing on trying to make eye contact with someone who literally can’t make eye contact with me. I walk away from it feeling so much less fatigued.

Yeah, it’s pretty intense! And it can mean higher bandwidth usage in their home, and tech issues and it can also just be pretty distracting. 

In an ideal scenario … like, it looks like you have a nice home office setup. I’ve had a home office setup for a long time. But certainly in the more recent scenarios where people are working in all kinds of locations around their home, it can actually be challenging. Both with distractions, movement and noises … but even personal information that organizations have to be careful of, so that they’re not violating HR law, technically, in some of the information that might be gathered in these video calls.

Voice is really underestimated. Really being able to listen to people is a skill that, in many ways, could be improved upon.

Being this close to coworkers [she gestures at the distance between herself and her camera] … really, how often are you a foot or two away for like an hour, staring at your coworker? You’re really not. You’re around a conference room, or you’re milling about [an office]. It’s a little bit different.

I know for a lot of companies and folks who rely heavily on video, being “face-to-face,” in theory, can make a team feel more unified. So what other ways can you do that? I know that a lot of teams used to fly everybody out for these “retreats” — take everyone out to these vacation destinations, so they can bond over a campfire. In the middle of a pandemic, that’s probably … a little bit less enticing. How else can you make a team feel like one?

It really starts with the basics. 

We’re in a pretty different era of remote companies right now. When I started FlexJobs, there were very few models of this. So much about how I was creating it was just on instinct … but it was also just about, mostly, heart. 

Really consider how you want your company to be. Really consider how your culture is.

Culture is intentional. If you don’t make it intentional, you’ll still have a culture … it will just be a bad one. 

That’s one of the things that I think is an important reminder for remote work: You have to think about it. There are a lot of companies that don’t actually think about their culture, and they just rely on the fact that they’re all in-person, and it kind of just evolves. 

I don’t know about you, but I’ve certainly worked in toxic offices. The stories out there are abundant. Being in an office isn’t inherently good; being in an office doesn’t equal having a healthy culture, or making people feel engaged. 

There are a lot of people who express that, whether it’s the politics of the office, or clique-y ness, or disruptions, or lack of consideration amongst coworkers … there’s a lot of things that can really be harmful to a company’s engagement of workers. I don’t even mean that as a criticism; it’s something to be aware of.

We’ve taken a survey for the last seven years — every year, we do an annual super survey. One of the questions we ask is: If you had a really important job to deal with, a project, where would you go to get it done? Over 80% say they would not [do it] in the office during work hours. 

That’s unfortunate, right? I mean, that’s a problem in how we’re working. So when you think about that … okay, let’s ask the reason why. And a lot of the reasons have to do with distractions, uncomfortable workplaces. 

Can you elaborate on what you mean by making culture intentional? How do you do that in a remote setup?

Think through how you treat your people and your stakeholders. Have a mission statement.

I think mission statements get, yeah, to some degree [she makes finger quotes] “mission statement.” But really … what are the words that are core, what are the values that are core to your organization? How is that going to guide you with every interaction?

For us it’s integrity. That’s number one and has been. But probably the most valued trait is practiced communication. Those are both really important things, and we treat people that way and with care both internally and externally.

Think through how to show that; don’t just say it.  

Caring about people’s birthdays, caring about when they mentioned last week that a family member was ill and asking about that. They’re small human connections, but I think they’re a core of culture. 

I really think it’s about the human connections. 

Any common mistakes you see companies — those that have been doing this for a while, or were recently thrust into remote work — or employees getting wrong with regards to remote work?

I think there are a lot of historical stigmas and associations with remote work.

Typically it’s not all-or-nothing. So that’s one thing I think people do … I’ll say, “get wrong.” But right now, in a pandemic situation, we’ve had to do it all-or-nothing. But really, overall … like I say we’re a 100% remote company, but I still see my team sometimes.

The hardest part is getting set up. No matter whether you’re going to be a permanently remote worker or not, it’s always the hardest to get all the systems and your workspace dialed in. But I do think that getting a workspace dialed in is really important. If you’re three months into the pandemic and still finding yourself hopping around different places in your home, or finding yourself in a busy area of your house … try to identify, is that working for you? 

If it is, great! If not, try to find a place where you can actually set up and get into a mental space when you sit down at your desk and be productive and engaged. Investing — even if it means a small cost or asking your employer if they’ll supplement for small tools that’ll make your job easier (such as noise-cancelling headphones or a better video camera, or the little things that might help make your space more comfortable) — is really important. 

Being comfortable is important! Don’t be sitting in a folding chair anymore, please, unless you don’t have any other options.

Communicate and think of your team members as you would family that’s not nearby. Realize that relationships aren’t just built in person; they can absolutely be built remotely. We keep in touch with people remotely all the time! If you’ve ever worked in a large organization that had a different headquarters, you’ve worked with people in a distributed manner. It’s the same thing whether you’re seven desks away, seven floors away, seven buildings away … seven countries away, in some cases (except for the time differences.) But it really … if you’re using cloud-based technology, it’s really very transferable. 

Any final advice for companies finding themselves suddenly remote?

Keep an open mind. Really take the time to consider not just how this has been hard and different … but [see it] as an opportunity to rethink how you work.

I was on a panel recently and somebody said that they had hoped to get through this with some level of productivity, but they didn’t expect the same [levels]. But they were actually surprised! In some areas they were definitely getting the same, but they were also identifying that there was almost this … their term was “creative amplification” that they were seeing in certain roles. They worked in a design role, so that made sense. But they were really surprised it was actually better.

Why? Look at those why’s, look at the glimmers. We talk a lot about the future of work and what that means. Part of that is rethinking how we work.

We have all this wonderful technology. We’ve had it for decades, in some cases — but much more so in the past 10 years. Let’s use it! Especially tech companies; we have this opportunity, why would we possibly want to work the way we were 30, 40 years ago, all in the office? There’s beautiful parts of this, both for the workers and for the companies.

It’s been a really interesting opportunity for employers to tap into their empathy. We’ve all been humanized through this.

Even myself … I think I could be considered a pro remote worker, right? 13 years! But this has been harder for sure. I’ve got two children. And I don’t have childcare. And they’re not in school.

I think there’s a real empathy here, in that we all have seen how life has mixed in to work more than ever before. And that’s wonderful! We should see each other as humans more. And it gives us an opportunity to maybe eliminate some of that commute time and spend more time with our kids, and our family and our friends.

Honestly, I’ve loved seeing my coworker’s families running around in the background [of video calls], or seeing their dogs stomping around and barking behind them. I’d never have gotten that side of things in the office.

I think it’s really amazing. For employers who are happy about that, it’s really nice. There are, unfortunately, still quite a few old school managers who that angers, or who let that work against the employee. That’s one of the things I’m concerned about during all this; I think that employers do have to realize that we’re all juggling a lot, and to, again, tap into that empathy and understanding.

I had one of my fantastic team members come to me and say “Sara … I’m sorry, but I’m like a C- today.”

I know her situation. It’s hard, basically. She has children at home — but it’s not just about the kids. It’s a lot.

I think what employers have to think is … think about the context around us. If everything is optimal, I want to be an A-player every day. I even would like to be an A-player when it’s not optimal! But when it’s really suboptimal, when it’s pretty darn hard … and you know what, you’re still performing pretty well? In my book you’re an A.

Because everything that’s going on? It’s really hard. The context has changed. Every day, it’s getting a little better — but we’ve had a lot going on in this country lately, and it’s a lot of stress. Pay attention to the mental health of your team members, and yourself.

13 Jul 2020

Trump’s account is back on Twitch following ‘hateful conduct’ suspension

It’s been two weeks since Reddit and Twitch made key moves to ban political content over service violations. As Twitch noted at the time, its suspension of the official Trump account was just temporary. Following earlier reports, the service confirmed with TechCrunch that the account had been reinstated.

A spokesperson for the company also reiterated its original statement on the matter, noting, “Hateful conduct is not allowed on Twitch. In line with our policies, President Trump’s channel has been issued a temporary suspension from Twitch for comments made on stream, and the offending content has been removed.”

The suspension was triggered by two pieces of content. First there’s the campaign kickoff, which included the infamous line, “When Mexico sends its people, they’re not sending their best. […] They’re bringing drugs. They’re bringing crime. They’re rapists.”

And then there’s the recent Tulsa rally, which included this bit, “Hey, it’s 1:00 o’clock in the morning and a very tough, I’ve used the word on occasion, hombre, a very tough hombre is breaking into the window of a young woman whose husband is away as a traveling salesman or whatever he may do.”

“Like anyone else, politicians on Twitch must adhere to our Terms of Service and Community Guidelines,” the service said at the time. “We do not make exceptions for political or newsworthy content, and will take action on content reported to us that violates our rules.”

The move came amid the administration’s ongoing war with social media platforms like Twitter, which has included a call (and executive order) designed at revoking Section 230, which protects platforms from legal claims over user-generated content.

With rhetoric heating up both in rallies as well as Trump’s online media, it seems likely that history could repeat itself in the lead-up to the November election.

13 Jul 2020

Edtech exits show a need for better plumbing

The world’s massive experiment with remote learning has done more than emphasize the cracks in the way we learn. It’s brought much needed attention and capital to potential solutions.

But it’s not just investors who are flurrying to the space; edtech incumbents are taking notice, too. Recent acquisitions show that edtech’s growth spurt is forcing incumbents to think bigger and scoop talent along the way.

India edtech giant Byju encapsulates how to strategize around momentum. In June, the company raised money at a $10.5 billion valuation. It currently leads India’s online edtech market. Days later, TechCrunch learned that the company is in talks to acquire two-year-old education learning app Doubtnut for $125 million.

It’s because Doubtnut has a hold in a place that Byju doesn’t: smaller, localized towns and villages within India. While Byju might be a household name within India’s larger cities, the buy could help it expand to smaller markets.

There’s also Docsity’s recent spree of buys. The global e-learning startup, which launched in 2010 to serve Italian students, is a social network for professionals and students. In early July, it announced plans to buy two edtech companies: Estudar Com Você, based in Brazil, and Koofers, based in the U.S.

Estudar com Você, founded in 2015 and nicknamed “Brazilian Khan Academy” sells video lessons and text-based explanations for students in Brazil. Docsity bought the upstart to broaden its offering to its largest market, Brazil, and introduce video content for colleges to its curriculum.

13 Jul 2020

More new space consolidation as Voyager Space Holdings acquires Pioneer Astronautics

It’s beginning to be a sign of the times: smaller or younger space companies getting acquired by larger entities. Today, the company being acquired is Pioneer Astronautics, which has been bought by Voyager Space Holdings in a combined cash and stock deal. Voyager, which bills itself as the “first space-focused holding company,” now has a portfolio that includes both Pioneer and Altius Space Machines, which it acquired last year.

Pioneer Astronautics was founded in 1996, and focuses on R&D of new technologies related to space exploration. The company’s focus of late has been on sustainable human space exploration, including leveraging materials found on deep-space destinations, including the Moon, and turning them into resources that are required for sustained human presence in those places. Pioneer was actually selected by NASA recently to research materials systems for use under the Artemis program, for instance, and it plans to demonstrate how it’s possible to create oxygen for breathable air, and steel for construction, from lunar regolith – essentially the soil analog found on the Moon’s surface.

Voyager Space Holdings, which is led by co-founders Dylan Taylor and Matthew Kuta, aims to bring together a number of different smaller new space companies to “increase vertical integration and mission capability,” the company said in a press release announcing this news. There’s definitely an opportunity in the current climate to bundle a number of different more niche and specific services together for the larger players in the commercial space sector, as well as for government and defense clients.

Others appear to be pursuing a similar strategy, with Redwire, a PE firm-created holding company, having recently acquired Adcole Space and Deep Space Systems, along with in-space manufacturing pioneer startup Made in Space. All those acquisitions happened this year, with the Made in Space deal announced in June.

There are a number of factors that point to this being a trend that’s likely to accelerate. First, the current global economic climate is making it difficult for many small businesses to continue to operate independently, particularly in high-cost, long-term return areas like pioneering new technology development. And while that is probably driving down acquisition costs for the holding companies, long-term, the commercial space sector seems poised for growth, driven especially by the renewed global interesting space exploration and science, fuelled by public-private partnerships.

For the smaller space companies, this consolidation represents a steady source of funding for ongoing work that’s not dependent on a VC or other capital raise effort. Space is expensive – particularly when you’re trying to do something no one’s ever done before – so it’s logical that they’d look to these kinds of tie-ups as a means to continue their ambitious work.