Author: azeeadmin

11 Aug 2021

Former Twitter and DreamWorks exec joins Acorns as CFO ahead of the fintech’s public debut

As fintech Acorns plans to go public later this year, it has named former Twitter and DreamWorks animation exec Rich Sullivan to serve as its new chief financial officer.

Irvine, California-based Acorns announced in May its intent to go public by merging with publicly traded special purpose acquisition company Pioneer Merger Corp. The SPAC values the fintech company at $2.2 billion. 

Sullivan joins Acorns from Twitter, where he led corporate finance and FP&A. Prior to Twitter, he held executive positions at STX Entertainment and DreamWorks Animation, where he served as the company’s Deputy CFO. Sullivan has also held various roles at AT&T.

Image Credits: Rich Sullivan / Acorns

Acorns CEO Noah Kerner told TechCrunch that he was drawn to the executive’s experience in subscriptions, family and in “high-growth” technology as he thought about the consumer fintech’s long-term roadmap.

“Those are obviously all really relevant to what we’re doing at Acorns,” he said. 

Since its 2012 inception, the company has evolved its offering to also include investment services, debt management and a product aimed at children, Acorns Kids. It has more than 4 million subscribers that have invested nearly $10 billion through its app. The company touts nearly 99% monthly retention, and has the ambitious goal of reaching 10 million subscribers by 2025, according to Kerner. This year, he is projecting 60% to 70% CAGR growth.

For his part, Sullivan believes that his experience of more than two decades of working for several public companies in various roles will be valuable to Acorns in the process of going public.  

He told TechCrunch he was drawn to the company’s “mission-driven approach to put responsible tools of wealth in everyone’s hands by making investing easy and accessible to a large portion of the market that basically is underserved from the financial services industry, at least in the traditional sense.”

“I think it’s uniquely positioned as a high-growth business and also an interesting space that sits at the cross-section of fintech services and social responsibility,” Sullivan added. “As an industry leader with over 4 million subscribers with a really large addressable market, I think Acorns has an opportunity to be one of the most impactful companies in the space.” 

Along that vein, Acorns launched ESG portfolios, also known as sustainable portfolios, that are powered by Blackrock shares. (ESG stands for Environmental, Social, & Governance). Kerner said the move was in part driven by customer demand.

“The strategy there is really to allow our customers to not just invest in themselves, but also in a better planet,” he said. 

The role is not a newly created one for the popular saving and investing app. Jasmine Lee has served a dual role as chief operating officer and CFO, and helped prep Acorns for the public market. She will now focus on executing Acorn’s strategic plan and overseeing the day to day operations as COO, the company said.

11 Aug 2021

Founded by a Freshworks alum, sales commission platform Everstage gets $1.7M seed funding

A photo of Everstage founding team Vivek Suriyamoorthy and Siva Rajamani

Everstage founding team Vivek Suriyamoorthy and Siva Rajamani

For sales representatives, commissions are source of motivation—and frustration, too. Commission structures are often complex, and become even more labyrinthine as companies grow. “There is a standard fee, then there’s an implementation fee, there could be a multiplier bonus, there could be accelerators when you reach your quota and get higher quota numbers,” explained Siva Rajamani, the co-founder and chief executive officer of no-code sales commission automation platform Everstage. A lot of this is calculated on spreadsheets by finance teams, so salespeople have limited visibility into how much they are earning. 

Everstage was created to provide more transparency about sales commissions. Sales representatives and other customer-facing employees get real-time data about their performance. They can also use Everstage to forecast the potential commissions form their deals pipeline, giving them incentive to close more sales. The platform uses a modular system, so as companies grow, they can add more automated commission calculations without having to code anything.

Founded in 2020, the platform’s early customers include notable SaaS companies like Chargebee, Postman and Lamdatest. Everstage announced today that it has raised a $1.7 million seed round led by 3One4 Capital. Angel investors included Rippling co-founder Prasanna Sankar; Chargebee co-founders Krish Subramanian and Rajaraman Santhanam; Freshworks chief revenue officer Sidharth Malik; Conga chief technology officer Koti Reddy; Ally.io CEO Vetri Vellore; and RFPIO CEO Ganesh Shankar. The company is headquartered in Wilmington, Delaware, with an office in Chennai, India.

Before starting Everstage with Vivek Suriyamoorthy, the startup’s chief technology officer, Rajamani served as the head of business SaaS provider Freshworks’ global revenue operations team, working closely with sales representatives. During his tenure, Freshworks’ annual recurring revenue grew from $30 million a year to $300 million. 

Rajamani told TechCrunch that a lot of early-stage startups put more than 10% of their budget toward commissions. 

“Commissions obviously motivate and drive performance from these teams, but what started as a way to motivate gradually became a point of distrust because none of these folks had visibility into how they’re getting paid,” he said. “Plans got complex, and pretty much any salesperson you speak to at these companies will say they have their own shadow accounting.” 

“Shadow accounting” means salespeople keep their own records of the deals they close and calculate commissions by themselves. But the process can be tedious, especially if their calculations don’t match financial teams. This problem has been exacerbated by the COVID-19 pandemic, because salespeople can’t walk over to the finance department and ask about the status of their commissions.

Sometimes this results in high turnover as frustrated salespeople leave for companies that offer them more clarity about their earnings potential. 

“People want to chose companies that are very transparent about their commissions process and how their quotas are set, because that’s the only way they can assure themselves they can make money,” Rajamani said. “Otherwise promises made on paper are just on paper.” 

A screenshot of Everstage's dashboard for sales representatives, with data about their commissions

Everstage’s dashboard for sales representatives

Having visibility also motivates people. Everstage’s gamification features allows salespeople to look at their current quotas and deals pipeline, and forecast how much they can potentially earn, broken down by their commission plans, including deal attainment, implementation fees and multiplier bonuses. 

“At the end of the day, incentives and particular criteria, like multiplier bonuses, drive salespeople to close more contracts, or multi-year contracts,” Rajamani said. “If they can see how much more commission they can make if they close a deal as a multi-year contract, then it’s an added incentive.” 

Everstage is currently works primarily with SaaS companies, but also sees inbound interest from insurance, real estate, pharmaceuticals and biotech. The platform is sector-agnostic and can be customized for different types of commission plans. 

Rajamani notes that sales commissions management software is not a new area. For example, players like SAP CallidusCloud and Xactly have been around for years. 

Over the last year, newer sales commissions platforms have also raised, including CaptivateIQ and Spiff. This is in part because many high-growth companies have adjusted incentives for their sales team as they work remotely during the pandemic. 

There is some overlap between Everstage’s features and its competitors, but its main differentiators are its modular approach and emphasis on gamification. “We want to move away from automating busywork for revenue operations and finance, and move towards the gamification aspect, so the gamification is an additional module,” he said. “Other indicators—quota setting, target setting and overall company targets broken down by percentage, managers, regions—all those are also there.” 

In a statement about the funding, 3One4 Capital Anurag Ramdasan said, “As customer acquisition and retention have increased in complexity with more roles and workflows than ever, Rev Ops teams have become mandatory to align incentives and drive revenue. With their considerable experience, the Everstage founding team is well-positioned to help Rev Ops teams succeed, starting with real-time commission planning and visibility, and we’re excited to partner with them.” 

 

11 Aug 2021

Mirthy raises $1.1M pre-Seed funding to build out platform for sprightly Boomers

As Baby Boomers (aged 57-75 at this point) and Gen X (aged 41-56) head into their dotage, they are no longer the “senior citizens” of yore, being still active and, often, healthy. But leaving work means they lose about half of their social network, which has a negative impact on wellbeing. Plus, the pandemic increased loneliness levels with COVID lockdowns.

Mirthy’s platform allows over 60s to host or participate in free or ’affordable’ activities, socialising online and eventually offline as well. It’s aiming to become the “go-to platform for all over 60s’ social, physical and financial needs” thus capturing an increasingly large and wealthy market.

It’s now raised $1.1M pre-Seed funding led by Ascension’s ‘Fair By Design’ fund, with participation from Ada Ventures, Redrice Ventures and True.

Co-Founders Alex Ramamurthy and Dhruv Haria were inspired by the negative impact of social isolation and loneliness on their parents’ mental and social wellbeing. Ramamurthy has been Chairman of the Care Innovation Hub incubator. Haria is a Cambridge Grad (Maths), qualified Actuary, and Data Scientist with a background in the Finance and Technology domains.

Ramamurthy said: “Both Dhruv and I witnessed the effects retirement was having on our parents. We noticed how their wellbeing was being affected by their decreasing social circles and the increasing inactive free time they had alone.”

Users for Mirthy can get access to fitness classes to belly dancing workshops, and history lectures to piano concerts at home, delivered by hosts, most of them over 60. The startup now claims over 35,000 users since launch in April-2020.

Its competitors include The Joy Club, Hello Revel, GetSetUp and several others. What Mirthy says, however, is that its content is created and curated “by over 60s for 60s” while “most of the other companies offer intergenerational events” and hosts are amateurs, passionate about a particular interest.

11 Aug 2021

Construction management platform Remato raises $1.7M Seed from Passion Capital

Small and medium-sized construction businesses in Europe and the US tend not to be run on digital platforms, leaving a $1.6 trillion industry relatively untouched. publicly-listed Procore (NYSE: PCOR) is the go-to platform for large general contractors, but newer startups are going for this SMB construction market such as Sitemax, Sitemate, Fieldlens and Fieldwire.

Now, the Remato construction management platform is joining them with a $1.7 million seed investment round, led by London-based Passion Capital.
 
Additional investors in the financing round include founders and early team members of Pipedrive along with venture funds Superangel, Lemonade Stand, Spring Capital, and Kaamos Group – a long-standing property developer and general contractor. The new investment brings Remato’s total funding up to $2.5 million. Remato currently has customers in the Nordics and Baltics.
 
Founded in 2018, Remato says its platform allows field contractors to plan and manage budgets, labor, materials, and equipment on one app. The company says it is growing steadily at 10-15% MoM with a mobile-first user experience and now has 1,700 daily active users.

Co-founder and CEO Madis Lehtmets said: “The construction industry needs simplicity and modern design to achieve the mass adoption of software. We believe that user experience should be much more of a priority, as frontline adoption depends on it. It helps the traditionally low-tech industry to go fully digital.”  

Eileen Burbidge, Partner at Passion Capital, said: “We’re very excited to be working with Remato. Their traction to date clearly validates the need for digital user experiences and platforms for the massive construction sector, which comprises 10% of the global economy. We look forward to supporting the team’s ambitions in the UK, across the rest of Europe, and North America.”
  

11 Aug 2021

Singapore’s logistics tech startup Parcel Perform raises $20 million

Singapore-headquartered Parcel Perform, which connects merchants with e-commerce carriers and provides shipment tracking features, said on Wednesday it has raised $20 million in a new financing round as it scales its business in several parts of the world.

Cambridge Capital led the logistics tech startup’s Series A financing round, while SoftBank Ventures Asia and existing investors including Wavemaker Partners and Investible participated in it.

The SaaS startup helps improve the experience of e-commerce merchants and their customers when engaging with carriers, explained Dr. Arne Jeroschewski, co-founder and chief executive of Parcel Perform, in an interview with TechCrunch.

Nespresso, which sells home coffee machines, capsules and accessories, relies on Parcel Perform to gain access to logistics data, for instance. Based on this data, said Jeroschewski, tracking experience — such as a web page for tracking, a system for authentication — is charted for the firm and the startup also provides tools for customer support.

Parcel Perform also provides these merchants with tools to create additional touchpoints after the checkout to create higher brand loyalty with customers, opportunities to move more inventories, and it has also developed a system to support more than 30 languages to offer the most personalized experience to customers. It says businesses on its platform have increased their customer lifetime value by up to 40%. 

The startup — which is already profitable and has grown its revenue by 5x since the onset of the pandemic — also uses its AI stack to make predictions on things such as when a customer will get their parcel. Parcel Perform, which integrates with over 700 carriers, has courted clients globally and executes more than 100 million parcel updates each day.

“Visibility is a vital market in this age of e-commerce. After evaluating many companies worldwide, we believe that Parcel Perform simply offers the best visibility and experience solution. They have built a unique value proposition for brands, marketplaces and carriers, with the most complete solution for end-to-end shipment tracking,” said Benjamin Gordon, Managing Partner of Cambridge Capital, in a statement. Cambridge focuses exclusively on global logistics and supply chain technology.

Jeroschewski founded the startup with Dana von der Heide. Jeroschewski previously co-founded e-tail unicorn Zalora, and held senior roles in Singapore Post and DHL, where he worked together with Dana. Dana is also an advisory member of the German Logistics Association and part of the distinguished eFounder Fellowship program by Alibaba.

Parcel Perform will deploy the fresh funds to scale further in Asia and Europe and also set up a regional office in North America, said Jeroschewski. The startup is also looking to increase its headcount.

11 Aug 2021

CRANQ launches to save developers time when adding text code

When adding text code from a 3rd party source into a platform, the process is an unavoidable and time-consuming chore. Developers currently spend a large part of their day reviewing things like “NPM” packages, and such. There are developer libraries and text code platforms like JetBrains and Visual Studio, but these don’t entirely solve the problem. A UK startup thinks it might have the answer.

CRANQ is a Low-Code IDE (integrated dev environment, like Visual Studio) which provides component authoring, with, it says, a lot of re-usability. Its focus on standardized datatypes and ports means that intent can be easily checked, says the company. It’s now raised a Pre-Seed £1m funding from Venrex and Profounders.

Developers build their code in the IDE visually, using a drag-and-drop interface. So far it’s been used to built a version of the Educai.io back-end, and Alpha trials will begin this summer.

The cofounders are Toby Rowland and Dan Stocker. Rowland, CEO, is a serial entrepreneur, best-known for co-founding King.com in 2003. His most recent digital startup – Mangahigh.com – was acquired by Westermann Publishing in 2018, and subsequently, Rowland launched RyzeHydrogen.comfor the hydrogen-for-transport market. Stocker, CTO, is an experienced developer, software architect, and inventor. Among other projects, Dan conceived and created Giant, a React competitor, in 2012.

CRANQ’s initial focus on testing will also bring it into competition with Postman.com. The Workflow space (Zapier, N8N etc.) also overlaps with CRANQ.

But CRANQ is addressing a sizeable market. The microservices market is estimated to be worth $32bn in 2023, growing at 16% you, according to some estimates.

11 Aug 2021

In the wake of recent racist attacks, Instagram rolls out more anti-abuse features

Instagram today is rolling out a set of new features aimed at helping people protect their accounts from abuse, including offensive and unwanted comments and messages. The company will introduce tools for filtering abusive direct message (DM) requests as well as a way for users to limit other people from posting comments or sending DMs during spikes of increased attention — like when going viral. In addition, those who attempt to harass others on the service will also see stronger warnings against doing so, which detail the potential consequences.

The company recently confirmed it was testing the new anti-harassment tool, Limits, which Instagram head Adam Mosseri referenced in a video update shared with the Instagram community last month. The feature aims to give Instagram users an easy way to temporarily lock down their accounts when they’re targeted with a flood of harassment.

Such an addition could have been useful to combat the recent racist attacks that took place on Instagram following the Euro 2020 final, which saw several England footballers viciously harassed by angry fans after the team’s defeat. The incidents, which had included racist comments and emoji, raised awareness of how little Instagram users could do to protect themselves when they’ve gone viral in a negative way.

Image Credits: Instagram

During these sudden spikes of attention, Instagram users see an influx of unwanted comments and DM requests from people they don’t know. The Limits feature allows users to choose who can interact with you during these busy times.

From Instagram’s privacy settings, you’ll be able to toggle on limits that restrict accounts that are not following you as well as those belonging to recent followers. When limits are enabled, these accounts can’t post comments or send DM requests for a period of time of your choosing, like a certain number of days or even weeks.

Twitter had been eyeing a similar set of tools for users who go viral, but has yet to put them into action.

Instagram’s Limits feature had already been in testing, but is now becoming globally available.

The company says it’s currently experimenting with using machine learning to detect a spike in comments and DMs in order to prompt people to turn on Limits with a notification in the Instagram app.

Another feature, Hidden Words, is also being expanded.

Designed to protect users from abusive DM requests, Hidden Words automatically filters requests that contain offensive words, phrases and emojis and places them into a Hidden Folder, which you can choose to never view. It also filters out requests that are likely spam or are otherwise low-quality. Instagram doesn’t provide a list of which words it blocks to prevent people from gaming the system, but it has now updated that database with new types of offensive language, including strings of emoji — like those that were used to abuse the footballers — and included them in the filter.

Hidden Words had already been rolled out to a handful of countries earlier this year, but will reach all Instagram users globally by the end of the month. Instagram will push accounts with a larger following to use it, with messages both in their DM inbox and in their Stories tray.

The feature was also expanded with a new option to “Hide More Comments,” which would allow users to easily hide comments that are potentially harmful, but don’t go against Instagram’s rules.

Another change will involve the warnings that are displayed when someone posts a potentially abusive comment. Already, Instagram would warn users when they first try to post a comment, and it would later display an even stronger warning when they tried to post potentially offensive comments multiple times. Now, the company says users will see the stronger message the first time around.

Image Credits: Instagram

The message clearly states the comment may “contain racist language” or other content that goes against its guidelines, and reminds users that the comment may be hidden when it’s posted as a result. It also warns the user if they continue to break the community guidelines, their account “may be deleted.”

While systems to counteract online abuse are necessary and underdeveloped, there’s also the potential for such tools to be misused to silence dissent. For example, if a creator was spreading misinformation or conspiracies, or had people calling them out in the comments, they could turn to anti-abuse tools to hide the negative interactions. This would allow the creator to paint an inaccurate picture of their account as one that was popular and well-liked. And that, in turn, can be leveraged into marketing power and brand deals.

As Instagram puts more power into creators’ hands to handle online abuse, it has to weigh the potential impacts those tools have on the overall creator economy, too.

“We hope these new features will better protect people from seeing abusive content, whether it’s racist, sexist, homophobic or any other type of abuse,” noted Mosseri, in an announcement about the changes. “We know there’s more to do, including improving our systems to find and remove abusive content more quickly, and holding those who post it accountable.”

11 Aug 2021

Facebook’s vaccine stance is part of a familiar pattern, says author and NYTimes journalist

Today, in a new report about “coordinated inauthentic behavior” on its platform, Facebook states that it last month removed hundreds of accounts across its Facebook and Instagram platforms that were tied to anti-vaccination disinformation campaigns operated from Russia. In one campaign, says the company, a newly banned network “posted memes and comments claiming that the AstraZeneca COVID-19 vaccine would turn people into chimpanzees.” More recently, in May, the same network “questioned the safety of the Pfizer vaccine by posting an allegedly hacked and leaked
AstraZeneca document,” says Facebook.

The company publishes such reports as a reminder to the public that it is focused on “finding and removing deceptive campaigns around the world.” Still, a New York Times investigation today into Facebook’s relationship with the Biden administration suggests that the company continues to fall short when it comes to tackling misinformation, including, currently, around vaccine misinformation.

We talked about the disconnect earlier today with Sheera Frenkel, a cybersecurity correspondent for the New York Times and recent co-author, with New York Times national correspondent Cecelia Kang, of “An Ugly Truth: Inside Facebook’s Battle for Domination,” which was published in June. Our conversation has been lightly edited for length.

TC: This big story right now about Facebook centers on it shutting down the accounts of NYU researchers whose tools for studying advertising on the network violated its rules, according to the company. A lot of people think those objections don’t hold water. In the meantime, several Democratic senators have sent the company a letter, grilling it about its decision to ban these scholars.  How does this particular situation fit into your understanding of how Facebook operates? 

SF: I was struck by how it fit a pattern that we really showed in [our] book of Facebook taking what seems like a very ad hoc and piecemeal approach to many of its problems. This action they took against NYU was surprising because there are so many others that are using data in the way that NYU is, including, private companies and commercial firms that are using it in ways that we don’t fully understand.

With NYU, the academics there were actually quite transparent and how they were collecting data. They didn’t hide what they were doing. They told journalists about it, and they told Facebook about it. So for Facebook to take action against just them, just as they were about to publish some research that may have been critical of Facebook and may have been damaging to Facebook, seems like a one off thing and really gets to the root of Facebook’s problems about what data the company holds about its own users.

TC: Do you have any sense that investigators in the Senate or in Congress may demand more accountability for more recent industry indiscretions, such as the events of January 6? Typically, there comes a point where Facebook apologizes over a public flap . . . then nothing changes. 

SF: After the book came out, I spoke to one lawmaker who read our book and said, ‘It’s one thing if they apologized once, and we saw a substantial change happen at the company. But what these apologies are showing us is that they think they can get away with just an apology and then changing really surface level things but not getting to the root of the problem.’

So you brought up January 6, which is something that we know Congress is looking at, and I think that what lawmakers are doing is going a step beyond what they usually do . . . they’re taking a step back and saying, ‘How did Facebook allow groups to foment on the platform for months ahead of January 6? How did its algorithms drive people toward these groups? And how did its piecemeal approach to removing some groups but not others allow this movement known as stop-the-steal really take off. That’s fascinating because, until now, they haven’t taken that step back to understand the whole machinery behind Facebook.

TC: Still, if Facebook is not willing to share its data in a more granular way, I wonder how fruitful these investigations will really be.

SF: We reported in the New York Times that Facebook, when asked by the White House for this prevalence data on COVID — the idea being how prevalent is COVID misinformation — couldn’t give it to the White House because they didn’t have it. And the reason they didn’t have it is that when their own data scientists wanted to start tracking that over a year ago at the start of the pandemic, Facebook did not give them the resources or the mandate to start tracking the prevalence of COVID misinformation. One thing lawmakers can do is pressure Facebook to do that in the future and to give the company firm deadlines for when they want to see that data.

TC: Based on your reporting, do you think there’s a reporting issue within Facebook or that these unclosed information loops are by design? In the book, for example, you talk about Russian activity on the platform leading up to the 2016 elections. You say that the company’s then chief security officer, Alex Stamos, had come up with a special team to look at Russian election interference relatively early in 2016, but that after Donald Trump won the election, Mark Zuckerberg and Sheryl Sandberg said they were clueless and frustrated and they didn’t know why they weren’t presented with Stamos’s findings earlier.  

SF: As we were doing reporting for this book, we really wanted to get to the bottom of that. Did Mark Zuckerberg and Sheryl Sandberg avoid knowing what there was to know about Russia, or were they just kept out of the loop? Ultimately, I think only Mark Zuckerberg or Sheryl Sandberg can answer that question.

What I’ll say is that early on, about a week or two after the 2016 elections, Alex Stamos goes to them and says, ‘There was Russian election interference. We don’t know how much; we don’t know the extent. But there definitely was something here and we want to investigate it. And even after being told that startling news, Mark Zuckerberg [and other to brass] didn’t ask for daily or even weekly meetings to be updated on the progress of the security team. I know this is the chief executive of a company and as the CEO [he has] a lot on [his] plate. But you would think if your security team said to you, ‘Hey, there was an unprecedented thing that happened on our platform. Democracy was potentially harmed in a way that we didn’t foresee or expect,’ you would think that as the head of the company, you’d say, ‘This is a really huge priority for me, and I’m going to ask for regular updates and meetings on this.’ We don’t see that happen. And that let’s them monthly to be able to say, ‘Well, we didn’t know. We weren’t totally up to date with things.’

TC: In the meantime, industry participants remain very interested in where regulation goes. What are you watching most closely?

SF: In the next six months to a year, there are two things that are fascinating to me. One is COVID misinformation. It’s the worst problem for Facebook, because it’s been growing on the platform for close to a decade. It’s got deep roots across all parts of Facebook. And it’s homegrown. It’s Americans who are spreading this misinformation to other Americans. So it challenges all Facebook’s tenets on free speech and what it means to be a platform that welcomes free speech but also hasn’t drawn a clear line between what free speech is and what harmful speech is, especially during the time of the pandemic. So I’m really curious to see how they handle the fact that their own algorithms are still pushing people into anti vaccine groups and are still promoting people that definitely off the platform spread incorrect information about about COVID.

The second thing for me is that we’re going into a year where there are a lot of really important elections to be held in other countries with populist leaders, some of whom are modeling their use of Facebook after Donald Trump. After banning Donald Trump. I’m very curious to see how Facebook deals with some of these leaders in other countries who are testing the waters much in the same way that he did.

10 Aug 2021

Pave gets Y Combinator to back better startup compensation tools, again

Pave, a San Francisco-based startup that helps companies benchmark, plan and communicate compensation to their employees, has raised a $46 million Series B. YC Continuity led the round, which also saw participation from Andreessen Horowitz and Bessemer Venture Partners. The round comes eight months after Pave closed a $16 million Series A round. Today’s financing puts Pave’s valuation at $400 million, up from $75 million one year ago.

Pave launched with an ambitious goal: Can it measure pay across venture-backed tech companies in real time, and help startups move their comp table off of spreadsheets? AngelList and Glassdoor have already tried to build a similar benchmark-worthy data set, but Pave may have a built-in advantage over the companies that tried to fix the same problem before. Y Combinator, which helped incubate Pave and is now leading its most recent round through its later-stage capital vehicle, is one of the largest startup accelerators in the world. Of Pave’s 900 customers to date, one-third come from Y Combinator, and CEO Matthew Schulman only sees that number growing.

“Having YC’s deep support of Pave as the YC-stamped leader in the burgeoning [compensation technology] industry is and will continue to be game changing for our distribution and ability to have ample data coverage in our benchmarking product,” Schulman said. He compared Pave’s distribution trajectory as similar to what fintech company Brex, also backed by Y Combinator Continuity, managed. The founder estimates that 60% of YC companies are active Brex customers.

The reliance on YC could engender platform risk, considering how often the accelerator invests in competitors — often within the same batch. That said, an investment from Y Combinator Continuity, which does Series B rounds and higher, may be a signal that YC has found the comptech player it wants to back. Ali Rowghani, the managing director of the fund and former COO of Twitter, is joining Pave’s board.

Data is everything for the startup, supporting each of Pave’s three main services that it offers to companies. First, Pave uses market and partner data to help companies benchmark salaries for their employees. Second, the startup integrates with HR tools such as Workday, Carta and Greenhouse to give its customers a holistic picture on how employees are currently being compensated, and what makes sense for promotion cycles and salary bumps. And third, the data work culminates into formal offers and compensation packages that employers can then offer to new and old employees.

Pave’s current customers account for data on over 65,000 employee records. The first product serves as a free top of funnel service, while the last two are paid services offered up like any ol’ enterprise software contract.

The world of compensation is rife with inequity, leading to the gender wage gap, and the gaps we can see in the market regarding minority pay disparity.

Schulman views one of Pave’s goals as getting companies to go from doing their D&I analysis from once a year, to doing it consistently. The company plans to build diversity and inclusion-specific dashboards that allow companies to see inequities and access ways or suggestions to improve their breakdown.

“What gets measured, gets improved,” Schulman said. Pave has begun to track its own compensation and diversity metrics, in an effort to be more transparent with its employees and maybe inspire some companies to do the same. About 33% of Pave’s workforce identify as women, compared to an industry average of 28.8%. Half of Pave’s executives, and half of Pave’s board members, identify as women. The company has committed to having 50% of its client-facing roles, which include customer success managers and sales members, “to be female or persons from underrepresented groups.”

While Pave is starting to disclose its own internal benchmarks, transparency around diversity isn’t yet a standard within tech companies — it’s far easier to get valuations than to get specifics around the makeup of historically overlooked individuals within organizations. Pave recently launched the Pave Data Lab, which uses its data set to showcase compensation trends and inequities within how tech workers are paid. That said, Pave doesn’t currently require the companies it works with to upload gender and race information into their benchmarking tool, and didn’t disclose what specific percentage of companies on its platform share that data.

It is hoping noise will make a difference. Pave’s compensation benchmarking data is now free for all companies to use, which will bring more data underneath its umbrella, and more standards to the confusing world of compensation.

10 Aug 2021

Daily Crunch: Apple’s head of Privacy addresses concerns over Messages safety, child abuse detection

To get a roundup of TechCrunch’s biggest and most important stories delivered to your inbox every day at 3 p.m. PDT, subscribe here.

Hello and welcome to Daily Crunch for August 10, 2021. Today we have all sorts of goodies for you: Apple’s privacy stance, cannabis tech, even some crypto-focused items. Please enjoy.

Also note that Salesforce’s Kathy Baxter is coming to TC Sessions: SaaS to talk AI, which is going to be a hoot. — Alex

The TechCrunch Top 3

  • Apple makes its privacy case: In a TechCrunch interview with Apple’s privacy chief Erik Neuenschwander, our own Matthew Panzarino got to ask questions about Cupertino’s impending software rollout of a method to detect certain abusive material. The decision by Apple has caused an uproar among privacy-minded groups.
  • We need more disaster tech: That’s Danny Crichton’s thesis after reading the latest IPCC report on climate change and considering his time reporting on startups building tech to better respond to increasingly common fires, floods and other forms of natural mischief. If you were hunting for a market where you might be able to build a company and make a difference, this could be your jam.
  • Salesforce announces Salesforce+: And yes, it is a streaming network of sorts. For context, Salesfoce used to host a yearly in-person event called Dreamforce. Then the pandemic hit. Now Salesforce is looking to build a home for Dreamforce online and extend its general video-and-content remit by producing more stuff, more often. The streaming service, which will focus on business topics, will be free when it launches later this year.

Startups/VC

  • Speaking of climate change: A startup called 44.01 just closed a $5 million round. What’s the money for? The company’s tech that turns carbon dioxide into stones. The process, called mineralizing, is known but not on a commercial scale. If 44.01 has its way, that could change.
  • In case you thought college kids had too much to do: Kiwibot, makers of a cute little robot that can deliver food, has “announced a partnership with food services and facilities management giant Sodexo to bring its robots to U.S. college campuses.” Now college students can ingest substances and not have to go pick up said vittles themselves. This makes me at once jealous and somewhat cranky about being old.
  • Auto insurance comparison app raises again: Jerry, which raised a $28 million Series B just a few months ago, is back with a new, larger round. This time it’s a $75 million Series C. Jerry, which has built an app that lets users compare insurance options, is in competitive territory. But given its new round, we presume that it has found an angle on its market that is proving lucrative thus far.
  • The Hyundai self-driving car program is coming to LA: Motional, a joint effort from Aptiv and Hyundai, is bringing its autonomous cars to Los Angeles via a new facility to do testing. What’s fun about this particular bit of news is that there are so many self-driving companies that I cannot keep them straight. Which means that perhaps one of them will nail the problem and I never have to drive again.
  • Surfside raises $4M for cannabis marketing tech: I suppose I didn’t know that cannabis needed marketing help, as it seems to sell itself rather well. But all the same, with myriad smaller cannabis brands getting started as the U.S. and other markets work in decriminalizing the drug, Surfside is building tech that may help them get to market.
  • In case you need just a little bit more, TechCrunch took a look at just how many crypto exchanges are raising money. Call it the Coinbase effect.

What’s driving the global surge in retail media spending?

As the pandemic changed consumer behavior and regulations began to reshape digital marketing tools, advertisers are turning to retail media.

Using the reams of data collected at the individual and aggregate level, retail media produce high-margin revenue streams. “And like most things, there is a bad, a good and a much better way of doing things,” advises Cynthia Luo, head of Marketing at e-commerce marketing stack Epsilo.

(Extra Crunch is our membership program, which helps founders and startup teams get ahead. You can sign up here.)

Big Tech Inc.

  • OpenAI’s coding tool gets upgrades: The team behind GPT3 built something called Codex, which was designed to turn text into code. Now, with some improvements, it could be a service that even non-developers could use. It’s going into a private beta. Honestly, I can’t wait to try this out and see what I can build.
  • Amazon will comp users for defective products sold by third parties: For purchases of less than $1,000, if a third party sells a defective good on Amazon, the megacorp will directly reimburse customers. This is a big upgrade. And will provide a natural incentive for Amazon to clean up its marketplace of substandard goods.
  • Robinhood buys Say Technologies: Today in a $140 million all-cash deal, Robinhood announced that it will buy Say Technologies, which provides software that connects investors and public companies that they have backed. You can see how the model could fit into Robinhood neatly, perhaps making its service stand out from a pack of similar companies offering low- and zero-cost trading services.
  • Venmo users can now get crypto back instead of cash: If you use a Venmo credit card, you will be able to get cash back in the form of cryptocurrency instead of cash. You know, if you wanted to boost your portfolio risk slightly. Jokes aside, it’s a neat feature and shows how the major C2C payment platforms can keep elbowing their way into the crypto market.

TechCrunch Experts: Growth Marketing

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Image Credits: SEAN GLADWELL (opens in a new window) / Getty Images

We’re reaching out to startup founders to tell us who they turn to when they want the most up-to-date growth marketing practices. Fill out the survey here.

Read one of the testimonials below about a Nigeria-based growth agency.

Marketer: Bili Sule, alGROWithm

Recommended by: Femi Aiki, Foodlocker

Testimonial: “Bili has a proven track record of driving growth, as the former vice president of Growth Marketing at Jumia Nigeria and as a senior growth consultant for Founders Factory Africa. She’s able to cut through the jargon/vanity metrics and has found a way to consistently and reliably engineer growth for us. What’s unique about Bili’s approach is that her strategy moves beyond just marketing. She is data-driven and takes an iterative experimental approach to unlocking growth across various business pillars, from marketing to product and operations.”