Author: azeeadmin

21 Sep 2021

Post-pandemic shifts means Patch will take co-working to UK small towns and suburbs

It would be fair to say the pandemic has had enormous effects on the world of work, but it has come at a time when other factors were already ongoing. The decline of main-street shopping due to e-commerce has only been hastened. The shift to remote working has sky-rocketed. And people no longer want to commute 8am-6pm anymore. But we’ve also found that working from home isn’t all its cracked up to be. Plus, they don’t see the point of commuting into a big city, only to have to co-work in something like a WeWork, when they could just as easily have gone to something local. The problem is, there is rarely a local co-working space, especially in the suburbs or smaller towns.

If, instead, you could bring work nearer to home (rather than working from home) then, the theory goes, you’d get a more balanced lifestyle, but also get that separation between work and home so many people, especially families, still desire.

Now, a new UK startup has come top with a ‘decentralized workspace’ idea which it plans to roll out across the UK.

Patch will take empty local high street shops and turn them into “collaborative cultural spaces” with its ‘Work Near Home’ proposition aimed at traditional commuters. There are an estimated 6 million knowledge work commuters in the UK, and Patch will run on monthly subscriptions from these kinds of members.

It’s now raised a $1.1M Seed funding round from a number of leading UK angel investors including Robin Klein (cofounder of LocalGlobe), Matt Clifford (Cofounder of Entrepreneur First), alongside Charlie Songhurst, Simon Murdoch (Episode 1), Wendy Becker (former CEO Jack Wills and NED at Great Portland Estates), Camilla Dolan (founding partner of sustainable investor Eka Ventures), Zoe Jervier (talent Director for US investment firm Sequoia), and Will Neale (founder of Grabyo and early-stage investor).

Patch says its ‘Work Near Home’ idea is geared to the Post-Covid ‘hybrid working’ movement and it plans to create public venues, “with a focus of entrepreneurship, technology, and cultural programming.”

Each Patch location will offer a range of private offices, co-working studios, “accessible low-cost options” and free scholarship places.

Patch’s first site will open in Chelmsford, Essex in early November, and the startup says several more sites are planned for 2022. It says it has received requests from people in Chester, St Albans, Wycombe, Shrewsbury, Yeovil, Bury, and Kingston upon Thames.

Patch’s founder Freddie Fforde said: “Where we work and where we live have traditionally be seen as distinct environments. This has led to the hollowing out of many high streets during the working week, and equally redundant office districts. We think that technology fundamentally changes this, allowing people to work near home and creating a new mixed environment of professional, civic, and cultural exchange.”

Fforde is a former Entrepreneur First founder and employee who has held various roles in early-stage tech companies in London and San Francisco. The head of product will be Paloma Strelitz, formerly cofounder of Assemble, a design studio that won the 2015 Turner Prize.

Commenting, Matt Clifford, Entrepreneur First and Code First Girls, said: “Technology has always changed the way we organize and work together. Patch will unlock opportunities for talented people based on who they are, unconstrained by where they live. We want to be a country where high-skilled jobs are available everywhere and Patch is a key part of that puzzle.”

Targeting towns and smaller cities, in residential areas, not the major city centres, Patch says it will look for under-utilised landmark buildings in the center of towns. In Chelmsford, their first space will be a Victorian brewery, for instance.

Grays Yard

Grays Yard

Chelmsford Councillor Simon Goldman, Deputy Cabinet Member for Economic Development and Small Business and representative for the BID board, said: “The introduction of a new co-working space in Gray’s Yard is a really positive scheme for the city. Providing local options for residents to work from will help them to have less of a commute which will hopefully allow a better work/life balance. Working closer to home brings many benefits for both individuals and their families, but also for the environment and the local economy.”

Patch says it will also operate a model of ‘giving back’, with 20% of peak event space hours donated to local and national providers of community services “that support the common good”. Early national partners include tech skills providers Code First Girls, and with Coder Dojo, a Raspberry Pi Foundation initiative.

21 Sep 2021

UK’s MarketFinance secures $383M to fuel its online loans platform for SMBs

Small and medium businesses regularly face cashflow problems. But if that’s an already-inconvenient predicament, it has been exacerbated to the breaking point for too many during the Covid-19 pandemic. Now, a UK startup called MarketFinance — which has built a loans platform to help SMBs stay afloat through those leaner times — is announcing a big funding infusion of £280 million ($383 million) as it gears up for a new wave of lending requests.

“It’s a good time to lend, at the start of the economic cycle,” CEO and founder Anil Stocker said in an interview.

The funding is coming mostly in the form of debt — money loaned to MarketFinance to in turn loan out to its customers as an approved partner of the UK government’s Recovery Loan Scheme; and £10 million ($14 million) of it is equity that MarketInvoice will be using to continue enhancing its platform.

Italian bank Intesa Sanpaolo S.p.A. and an unnamed “global investment firm” are providing the debt, while the equity portion is being led by Black River Ventures (which has also backed Marqeta, Upgrade, Coursera and Digital Ocean) with participation from existing backer, Barclays Bank PLC. Barclays is a strategic investor: MarketFinance powers the bank’s online SMB loans service. Other investors in the startup include Northzone.

We understand that the company’s valuation is somewhere in the region of under $500 million, but more than $250 million, although officially it is not disclosing any numbers.

Stocker said that MarketFinance has been profitable since 2018, one reason why it’s didn’t give up much equity in this current tranche of funding.

“We are building a sustainable business, and the equity we did raise was to unlock better debt at better prices,” he said. “It can help to post more equity on the balance sheet.” He said the money will be “going into our reserves” and used for new product development, marketing and to continue building out its API connectivity.

That last development is important: it taps into the big wave of “embedded finance” plays we are seeing today, where third parties offer, on their own platforms, loans to customers — with the loan product powered by MarketFinance, similar to what Barclays does currently. The range of companies tapping into this is potentially as vast as the internet itself. The promise of embedded finance is that any online brand that already does business with SMEs could potentially offer those SMEs loans to… do more business together.

MarketFinance began life several years ago as MarketInvoice, with its basic business model focused on providing short-term loans to a given SMB against the value of its unpaid invoices — a practice typically described as invoice finance. The idea at the time was to solve the most immediate cashflow issue faced by SMBs by leveraging the thing (unpaid invoices, which typically would eventually get paid, just not immediately) that caused the cashflow issue in the first place.

A lot of the financing that SMBs get against invoices, though, is mainly in the realm of working capital, helping companies make payroll and pay their own monthly bills. But Stocker said that over time, the startup could see a larger opportunity in providing financing that was of bigger sums and covered more ambitious business expansion goals. That was two years ago, and MarketInvoice rebranded accordingly to MarketFinance. (It still very much offers the invoice-based product.)

The timing turned out to be fortuitous, even if the reason definitely has not been lucky: Covid-19 came along and completely overturned how much of the world works. SMEs have been at the thin edge of that wedge not least because of those cashflow issues and the fact that they simply are less geared to diversification and pivoting due to shifting market forces because of their size.

This presented a big opportunity for MarketInvoice, it turned out.

Stocker said that the early part of the Covid-19 pandemic saw the bulk of loans being taken out to manage business interruptions due to Covid-19. Interruptions could mean business closures, or they could mean simply customers no longer coming as they did before, and so on. “The big theme was frictionless access to funding,” he said, using technology to better and more quickly assess applications digitally with “no meetings with bank managers” and reducing the response time to days from the typical 4-6 weeks that SMBs would have traditionally expected.

If last year was more about “panicking, shoring up or pivoting,” in Stocker’s words, “now what we’re seeing are a bunch of them struggling with supply chain issues, Brexit exacerbations and labor shortages. It’s really hard for them to manage all that.”

He said that the number of loan applications has been through the roof, so no shortage of demand. He estimates that monthly loan requests have been as high as $500 million, a huge sum for one small startup in the UK. It’s selective in what it lends: “We choose to support those we thought will return the money,” he said.

21 Sep 2021

UK’s MarketFinance secures $383M to fuel its online loans platform for SMBs

Small and medium businesses regularly face cashflow problems. But if that’s an already-inconvenient predicament, it has been exacerbated to the breaking point for too many during the Covid-19 pandemic. Now, a UK startup called MarketFinance — which has built a loans platform to help SMBs stay afloat through those leaner times — is announcing a big funding infusion of £280 million ($383 million) as it gears up for a new wave of lending requests.

“It’s a good time to lend, at the start of the economic cycle,” CEO and founder Anil Stocker said in an interview.

The funding is coming mostly in the form of debt — money loaned to MarketFinance to in turn loan out to its customers as an approved partner of the UK government’s Recovery Loan Scheme; and £10 million ($14 million) of it is equity that MarketInvoice will be using to continue enhancing its platform.

Italian bank Intesa Sanpaolo S.p.A. and an unnamed “global investment firm” are providing the debt, while the equity portion is being led by Black River Ventures (which has also backed Marqeta, Upgrade, Coursera and Digital Ocean) with participation from existing backer, Barclays Bank PLC. Barclays is a strategic investor: MarketFinance powers the bank’s online SMB loans service. Other investors in the startup include Northzone.

We understand that the company’s valuation is somewhere in the region of under $500 million, but more than $250 million, although officially it is not disclosing any numbers.

Stocker said that MarketFinance has been profitable since 2018, one reason why it’s didn’t give up much equity in this current tranche of funding.

“We are building a sustainable business, and the equity we did raise was to unlock better debt at better prices,” he said. “It can help to post more equity on the balance sheet.” He said the money will be “going into our reserves” and used for new product development, marketing and to continue building out its API connectivity.

That last development is important: it taps into the big wave of “embedded finance” plays we are seeing today, where third parties offer, on their own platforms, loans to customers — with the loan product powered by MarketFinance, similar to what Barclays does currently. The range of companies tapping into this is potentially as vast as the internet itself. The promise of embedded finance is that any online brand that already does business with SMEs could potentially offer those SMEs loans to… do more business together.

MarketFinance began life several years ago as MarketInvoice, with its basic business model focused on providing short-term loans to a given SMB against the value of its unpaid invoices — a practice typically described as invoice finance. The idea at the time was to solve the most immediate cashflow issue faced by SMBs by leveraging the thing (unpaid invoices, which typically would eventually get paid, just not immediately) that caused the cashflow issue in the first place.

A lot of the financing that SMBs get against invoices, though, is mainly in the realm of working capital, helping companies make payroll and pay their own monthly bills. But Stocker said that over time, the startup could see a larger opportunity in providing financing that was of bigger sums and covered more ambitious business expansion goals. That was two years ago, and MarketInvoice rebranded accordingly to MarketFinance. (It still very much offers the invoice-based product.)

The timing turned out to be fortuitous, even if the reason definitely has not been lucky: Covid-19 came along and completely overturned how much of the world works. SMEs have been at the thin edge of that wedge not least because of those cashflow issues and the fact that they simply are less geared to diversification and pivoting due to shifting market forces because of their size.

This presented a big opportunity for MarketInvoice, it turned out.

Stocker said that the early part of the Covid-19 pandemic saw the bulk of loans being taken out to manage business interruptions due to Covid-19. Interruptions could mean business closures, or they could mean simply customers no longer coming as they did before, and so on. “The big theme was frictionless access to funding,” he said, using technology to better and more quickly assess applications digitally with “no meetings with bank managers” and reducing the response time to days from the typical 4-6 weeks that SMBs would have traditionally expected.

If last year was more about “panicking, shoring up or pivoting,” in Stocker’s words, “now what we’re seeing are a bunch of them struggling with supply chain issues, Brexit exacerbations and labor shortages. It’s really hard for them to manage all that.”

He said that the number of loan applications has been through the roof, so no shortage of demand. He estimates that monthly loan requests have been as high as $500 million, a huge sum for one small startup in the UK. It’s selective in what it lends: “We choose to support those we thought will return the money,” he said.

21 Sep 2021

UK’s MarketFinance secures $383M to fuel its online loans platform for SMBs

Small and medium businesses regularly face cashflow problems. But if that’s an already-inconvenient predicament, it has been exacerbated to the breaking point for too many during the Covid-19 pandemic. Now, a UK startup called MarketFinance — which has built a loans platform to help SMBs stay afloat through those leaner times — is announcing a big funding infusion of £280 million ($383 million) as it gears up for a new wave of lending requests.

“It’s a good time to lend, at the start of the economic cycle,” CEO and founder Anil Stocker said in an interview.

The funding is coming mostly in the form of debt — money loaned to MarketFinance to in turn loan out to its customers as an approved partner of the UK government’s Recovery Loan Scheme; and £10 million ($14 million) of it is equity that MarketInvoice will be using to continue enhancing its platform.

Italian bank Intesa Sanpaolo S.p.A. and an unnamed “global investment firm” are providing the debt, while the equity portion is being led by Black River Ventures (which has also backed Marqeta, Upgrade, Coursera and Digital Ocean) with participation from existing backer, Barclays Bank PLC. Barclays is a strategic investor: MarketFinance powers the bank’s online SMB loans service. Other investors in the startup include Northzone.

We understand that the company’s valuation is somewhere in the region of under $500 million, but more than $250 million, although officially it is not disclosing any numbers.

Stocker said that MarketFinance has been profitable since 2018, one reason why it’s didn’t give up much equity in this current tranche of funding.

“We are building a sustainable business, and the equity we did raise was to unlock better debt at better prices,” he said. “It can help to post more equity on the balance sheet.” He said the money will be “going into our reserves” and used for new product development, marketing and to continue building out its API connectivity.

That last development is important: it taps into the big wave of “embedded finance” plays we are seeing today, where third parties offer, on their own platforms, loans to customers — with the loan product powered by MarketFinance, similar to what Barclays does currently. The range of companies tapping into this is potentially as vast as the internet itself. The promise of embedded finance is that any online brand that already does business with SMEs could potentially offer those SMEs loans to… do more business together.

MarketFinance began life several years ago as MarketInvoice, with its basic business model focused on providing short-term loans to a given SMB against the value of its unpaid invoices — a practice typically described as invoice finance. The idea at the time was to solve the most immediate cashflow issue faced by SMBs by leveraging the thing (unpaid invoices, which typically would eventually get paid, just not immediately) that caused the cashflow issue in the first place.

A lot of the financing that SMBs get against invoices, though, is mainly in the realm of working capital, helping companies make payroll and pay their own monthly bills. But Stocker said that over time, the startup could see a larger opportunity in providing financing that was of bigger sums and covered more ambitious business expansion goals. That was two years ago, and MarketInvoice rebranded accordingly to MarketFinance. (It still very much offers the invoice-based product.)

The timing turned out to be fortuitous, even if the reason definitely has not been lucky: Covid-19 came along and completely overturned how much of the world works. SMEs have been at the thin edge of that wedge not least because of those cashflow issues and the fact that they simply are less geared to diversification and pivoting due to shifting market forces because of their size.

This presented a big opportunity for MarketInvoice, it turned out.

Stocker said that the early part of the Covid-19 pandemic saw the bulk of loans being taken out to manage business interruptions due to Covid-19. Interruptions could mean business closures, or they could mean simply customers no longer coming as they did before, and so on. “The big theme was frictionless access to funding,” he said, using technology to better and more quickly assess applications digitally with “no meetings with bank managers” and reducing the response time to days from the typical 4-6 weeks that SMBs would have traditionally expected.

If last year was more about “panicking, shoring up or pivoting,” in Stocker’s words, “now what we’re seeing are a bunch of them struggling with supply chain issues, Brexit exacerbations and labor shortages. It’s really hard for them to manage all that.”

He said that the number of loan applications has been through the roof, so no shortage of demand. He estimates that monthly loan requests have been as high as $500 million, a huge sum for one small startup in the UK. It’s selective in what it lends: “We choose to support those we thought will return the money,” he said.

21 Sep 2021

Blackbird.AI grabs $10M to help brands counter disinformation

New York-based Blackbird.AI has closed a $10 million Series A as it prepares to launched the next version of its disinformation intelligence platform this fall.

The Series A is led by Dorilton Ventures, along with new investors including Generation Ventures, Trousdale Ventures, StartFast Ventures and Richard Clarke, former chief counter-terrorism advisor for the National Security Council. Existing investor NetX also participated.

Blackbird says it’ll be used to scale up to meet demand in new and existing markets, including by expanding its team and spending more on product dev.

The 2017-founded startup sells software as a service targeted at brands and enterprises managing risks related to malicious and manipulative information — touting the notion of defending the “authenticity” of corporate marketing.

It’s applying a range of AI technologies to tackle the challenge of filtering and interpreting emergent narratives from across the Internet to identify disinformation risks targeting its customers. (And, for the record, this Blackbird is no relation to an earlier NLP startup, called Blackbird, which was acquired by Etsy back in 2016.)

Blackbird AI is focused on applying automation technologies to detect malicious/manipulative narratives — so the service aims to surface emerging disinformation threats for its clients, rather than delving into the tricky task of attribution. On that front it’s only looking at what it calls “cohorts” (or “tribes”) of online users — who may be manipulating information collectively, for a shared interest or common goal (talking in terms of groups like antivaxxers or “bitcoin bros”). 

Blackbird CEO and co-founder Wasim Khaled says the team has chalked up five years of R&D and “granular model development” to get the product to where it is now. 

“In terms of technology the way we think about the company today is an AI-driven disinformation and narrative intelligence platform,” he tells TechCrunch. “This is essentially the efforts of five years of very in-depth, ears to the ground research and development that has really spanned people everywhere from the comms industry to national security to enterprise and Fortune 500,  psychologists, journalists.

“We’ve just been non-stop talking to the stakeholders, the people in the trenches — to understand where their problem sets really are. And, from a scientific empirical method, how do you break those down into its discrete parts? Automate pieces of it, empower and enable the individuals that are trying to make decisions out of all of the information disorder that we see happening.”

The first version of Blackbird’s SaaS was released in November 2020 but the startup isn’t disclosing customer numbers as yet. v2 of the platform will be launched this November, per Khaled. 

Also today it’s announcing a partnership with PR firm, Weber Shandwick, to provide support to customers on how to respond to specific malicious messaging that could impact their businesses and which its platform has flagged up as an emerging risk.

Disinformation has of course become a much labelled and discussed feature of online life in recent years, although it’s hardly a new (human) phenomenon. (See, for example, the orchestrated airbourne leaflet propaganda drops used during war to spread unease among enemy combatants and populations). However it’s fair to say that the Internet has supercharged the ability of intentionally bad/bogus content to spread and cause reputational and other types of harms.

Studies show the speed of online travel of ‘fake news’ (as this stuff is sometimes also called) is far greater than truthful information. And there the ad-funded business models of mainstream social media platforms are implicated since their commercial content-sorting algorithms are incentivized to amplify stuff that’s more engaging to eyeballs, which isn’t usually the grey and nuanced truth.

Stock and crypto trading is another growing incentive for spreading disinformation — just look at the recent example of Walmart targeted with a fake press release suggesting the retailer was about to accept litecoin.

All of which makes countering disinformation look like a growing business opportunity.

Earlier this summer, for example, another stealthy startup in this area, ActiveFence, uncloaked to announce a $100M funding round. Others in the space include Primer and Yonder (previously New Knowledge), to name a few.

 

While some other earlier players in the space got acquired by some of the tech giants wrestling with how to clean up their own disinformation-ridden platforms — such as UK-based Fabula AI, which was bought by Twitter in 2019.

Another — Bloomsbury AI — was acquired by Facebook. And the tech giant now routinely tries to put its own spin on its disinformation problem by publishing reports that contain a snapshot of what it dubs “coordinated inauthentic behavior” that it’s found happening on its platforms (although Facebook’s selective transparency often raises more questions than it answers.)

The problems created by bogus online narratives ripple far beyond key host and spreader platforms like Facebook — with the potential to impact scores of companies and organizations, as well as democratic processes.

But while disinformation is a problem that can now scale everywhere online and affect almost anything and anyone, Blackbird is concentrating on selling its counter tech to brands and enterprises — targeting entities with the resources to pay to shrink reputational risks posed by targeted disinformation.

Per Khaled, Blackbird’s product — which consists of an enterprise dashboard and an underlying data processing engine — is not just doing data aggregation, either; the startup is in the business of intelligently structuring the threat data its engine gathers, he says, arguing too that it goes further than some rival offerings that are doing NLP (natural language processing) plus maybe some “light sentiment analysis”, as he puts it.

Although NLP is also key area of focus for Blackbird, along with network analysis — and doing things like looking at the structure of botnets.

But the suggestion is Blackbird goes further than the competition by merit of considering a wider range of factors to help identify threats to the “integrity” of corporate messaging. (Or, at least, that’s its marketing pitch.)

Khaled says the platform focuses on five “signals” to help it deconstruct the flow of online chatter related to a particular client and their interests — which he breaks down thusly: Narratives, networks, cohorts, manipulation and deception. And for each area of focus Blackbird is applying a cluster of AI technologies, according to Khaled.

But while the aim is to leverage the power of automation to tackle the scale of the disinformation challenge that businesses now face, Blackbird isn’t able to do this purely with AI alone; expert human analysis remains a component of the service — and Khaled notes that, for example, it can offer customers (human) disinformation analysts to help them drill further into their disinformation threat landscape.

“What really differentiates our platform is we process all five of these signals in tandem and in near real-time to generate what you can think of almost as a composite risk index that our clients can weigh, based on what might be most important to them, to rank the most important action-oriented information for their organization,” he says.

“Really it’s this tandem processing — quantifying the attack on human perception that we see happening; what we think of as a cyber attack on human perception — how do you understand when someone is trying to shift the public’s perception? About a topic, a person, an idea. Or when we look at corporate risk, more and more, we see when is a group or an organization or a set of accounts trying to drive public scrutiny against a company for a particular topic.

“Sometimes those topics are already in the news but the property that we want our customers or anybody to understand is when is something being driven in a manipulative manner? Because that means there’s an incentive, a motive, or an unnatural set of forces… acting upon the narrative being spread far and fast.”

“We’ve been working on this, and only this, and early on decided to do a purpose-built system to look at this problem. And that’s one of the things that really set us apart,” he also suggests, adding: “There are a handful of companies that are in what is shaping up to be a new space — but often some of them were in some other line of work, like marketing or social and they’ve tried to build some models on top of it.

“For bots — and for all of the signals we talked about — I think the biggest challenge for many organizations if they haven’t completely purpose built from scratch like we have… you end up against certain problems down the road that prevent you from being scalable. Speed becomes one of the biggest issues.

“Some of the largest organizations we’ve talked to could in theory product the signals — some of the signals that I talked about before — but the lift might take them ten to 12 days. Which makes it really unsuited for anything but the most forensic reporting, after things have kinda gone south… What you really need it in is two minutes or two seconds. And that’s where — from day one — we’ve been looking to get.”

As well as brands and enterprises with reputational concerns — such as those whose activity intersects with the ESG space; aka ‘environmental, social and governance’ — Khaled claims investors are also interested in using the tool for decision support, adding: “They want to get the full picture and make sure they’re not being manipulated.”

At present, Blackbird’s analysis focuses on emergent disinformation threats — aka “nowcasting” — but the goal is also to push into disinformation threat predictive — to help prepare clients for information-related manipulation problems before they occur. Albeit there’s no timeframe for launching that component yet.

“In terms of counter measurement/mitigation, today we are by and large a detection platform, starting to bridge into predictive detection as well,” says Khaled, adding: “We don’t take the word predictive lightly. We don’t just throw it around so we’re slowly launching the pieces that really are going to be helpful as predictive.

“Our AI engine trying to tell [customers] where things are headed, rather than just telling them the moment it happens… based on — at least from our platform’s perspective — having ingested billions of posts and events and instances to then pattern match to something similar to that that might happen in the future.”

“A lot of people just plot a path based on timestamps — based on how quickly something is picking up. That’s not prediction for Blackbird,” he also argues. “We’ve seen other organizations call that predictive; we’re not going to call that predictive.”

In the nearer term, Blackbird has some “interesting” counter measurement tech to assist teams in its pipeline, coming in Q1 and Q2 of 2022, Khaled adds.

21 Sep 2021

Your WhatsApp to soon lose shortcut to Messenger Rooms

It has been revealed that the Facebook-owned messaging app, WhatsApp, is removing a feature that it designed into the chats about a year ago using which you could conduct a chat room.

According to a WABetaInfo report, WhatsApp has removed the Messenger Rooms shortcut from the chat share sheet for both WhatsApp iOS and Android versions.

This shortcut was introduced in May 2020 to allow users to create a group of about 50 participants on Facebook Messenger.

WhatsApp is finally deleting that useless option from the chate share sheet, the WABetaInfo said in a tweet.

With the removal of the Messenger Rooms shortcut on the in-chat menu, users will now see the Document, Camera, Gallery, Audio, Location and Contact shortcuts in the share option. Thus everything will remain the same barring the Messenger Rooms option.

Meanwhile, WhatsApp recently introduced a new feature on the latest iOS beta version, that will allow them to quickly change the group icon or display picture by picking an emoji or a sticker – which can come in handy when creating a temporary group, for example, planning a birthday party or an event.

21 Sep 2021

Your WhatsApp to soon lose shortcut to Messenger Rooms

It has been revealed that the Facebook-owned messaging app, WhatsApp, is removing a feature that it designed into the chats about a year ago using which you could conduct a chat room.

According to a WABetaInfo report, WhatsApp has removed the Messenger Rooms shortcut from the chat share sheet for both WhatsApp iOS and Android versions.

This shortcut was introduced in May 2020 to allow users to create a group of about 50 participants on Facebook Messenger.

WhatsApp is finally deleting that useless option from the chate share sheet, the WABetaInfo said in a tweet.

With the removal of the Messenger Rooms shortcut on the in-chat menu, users will now see the Document, Camera, Gallery, Audio, Location and Contact shortcuts in the share option. Thus everything will remain the same barring the Messenger Rooms option.

Meanwhile, WhatsApp recently introduced a new feature on the latest iOS beta version, that will allow them to quickly change the group icon or display picture by picking an emoji or a sticker – which can come in handy when creating a temporary group, for example, planning a birthday party or an event.

21 Sep 2021

Cartona gets $4.5M pre-Series A to connect retailers with suppliers in Egypt

Cartona

image Credit: Cartona

Year-old startup Capiter announced last week that it raised a $33 million Series A to digitize Egypt’s traditional offline retail market.

It’s looking to take a large pie in the budding e-commerce and retail play, where multiple startups are pulling their weight including Cartona, also a year-old startup out of Egypt.

Today, Cartona is announcing that it has raised a $4.5 million pre-Series A funding round to connect retailers and manufacturers via an application.

The company confirmed that Dubai-based venture capital firm Global Ventures led the round, with Pan-African firm Kepple Africa, T5 Capital and angel investors also participating.

Cairo-based Cartona, founded in August 2020, focuses on solving the supply-chain and operational challenges of players in the fast-moving consumer goods (FMCG) industry by helping buyers access products from sellers on a single platform.

Buyers, in this case, are retailers, while sellers are FMCG companies, distributors and wholesalers.

The problem retailers in Egypt and most of Africa face mainly revolves around limited access to suppliers. There are also issues around transparency in market prices, which are dependent on traditional logistical capabilities.

For suppliers, the lack of data and inability to make data-backed decisions to improve margins and aid growth add up to unoptimized warehouses. 

“The trade market is completely inefficient and it’s not good for the supplier nor the manufacturers, and it’s definitely not good for retailers,” CEO Mahmoud Talaat told TechCrunch in an interview. “So we came up with the idea of Cartona, which is basically a fully light-asset model that connects manufacturers and wholesalers to retailers.”

Talaat founded the company alongside Mahmoud Abdel-Fattah. Before Cartona, Abdel-Fattah founded Speakol, a MENA-focused adtech platform serving 60 million monthly users, while Talaat was the chief commercial officer of agriculture company Lamar Egypt.

Cartona works as an asset-light marketplace. On the platform, grocery retailers can get orders from a curated network of sellers. The company says this way, it can provide visibility through real-time price comparisons and clarity on delivery times.

Also, FMCGs and suppliers can optimize their go-to-market execution through the use of data and analytics. Cartona tops it off by providing embedded finance and access to credit to retailers and suppliers.

Cartona makes money through all these processes. It takes a commission on orders made, charges suppliers for running advertising to merchants (since they compete for the latter’s attention), and provides market insights on buyer behavior, price competition and market share.

“It is time to capitalize on technology beyond warehouses and trucks. Data and technology will transform traditional retail to a digitally native one, which in return will drastically improve the supply chain efficiency,” Abdel-Fattah said about how the company sells information to retailers and suppliers.

Cartona has over 30,000 merchants on its platform. Together, they have processed more than 400,000 orders with an annualized gross merchandise value of EGP 1 billion (~$64 million). Cartona also works with more than 1,000 distributors, wholesalers and 100 FMCG companies, offering consumers more than 10,000 products, including dry, fresh and frozen food.

The company’s business and revenue model is similar to other companies in this space, but the main difference lies in whether they own assets or not.

Taking a look at the players in Egypt, for instance, MaxAB operates its warehouses and fleets; Capiter uses a hybrid model in which it rents these assets and owns inventory when dealing with high-turnover products. But Cartona solely manages an asset-light model.

The CEO tells me that he thinks this model works best for all the stakeholders involved in the retail market. He argues that not owning assets and leasing the ones on the ground shows that the company is trying to improve the operations of existing suppliers and merchants instead of displacing them.

I believe that the infrastructure already exists. We already have many warehouses, many small and medium-sized entrepreneurs, and wholesalers and distributors and companies that have a lot of assets. If you want to fix the problem, we think one should enable the people who are strategically located in small streets all over Egypt and have the infrastructure but don’t have the technology needed to optimize their warehouses and carts.”

The current margins for suppliers with warehouses are slim, and Cartona provides the technology — an inventory and ordering system — to provide efficiency in its supply chain.

The general partner at lead investor Global Ventures, Basil Moftah, said in a statement that Cartona’s technology and not owning inventory proved critical in the firm’s decision to back the company.

“The trade market is one of the most sophisticated, yet [it is] characterized by multiple critical inefficiencies across the value chain,” he said. Cartona’s asset-light approach tackles those inefficiencies by optimizing the trade process in unique ways and does so with minimal capital spent.”

Proceeds of the investment focus on improving this technology, Talaat said. In addition, Cartona is expanding its team and operations beyond two cities in Egypt — Cairo and Alexandria — to other parts.

A longer-term plan might include horizontal and vertical product expansion into pharmaceuticals, electronics and fashion.

21 Sep 2021

Cartona gets $4.5M pre-Series A to connect retailers with suppliers in Egypt

Cartona

image Credit: Cartona

Year-old startup Capiter announced last week that it raised a $33 million Series A to digitize Egypt’s traditional offline retail market.

It’s looking to take a large pie in the budding e-commerce and retail play, where multiple startups are pulling their weight including Cartona, also a year-old startup out of Egypt.

Today, Cartona is announcing that it has raised a $4.5 million pre-Series A funding round to connect retailers and manufacturers via an application.

The company confirmed that Dubai-based venture capital firm Global Ventures led the round, with Pan-African firm Kepple Africa, T5 Capital and angel investors also participating.

Cairo-based Cartona, founded in August 2020, focuses on solving the supply-chain and operational challenges of players in the fast-moving consumer goods (FMCG) industry by helping buyers access products from sellers on a single platform.

Buyers, in this case, are retailers, while sellers are FMCG companies, distributors and wholesalers.

The problem retailers in Egypt and most of Africa face mainly revolves around limited access to suppliers. There are also issues around transparency in market prices, which are dependent on traditional logistical capabilities.

For suppliers, the lack of data and inability to make data-backed decisions to improve margins and aid growth add up to unoptimized warehouses. 

“The trade market is completely inefficient and it’s not good for the supplier nor the manufacturers, and it’s definitely not good for retailers,” CEO Mahmoud Talaat told TechCrunch in an interview. “So we came up with the idea of Cartona, which is basically a fully light-asset model that connects manufacturers and wholesalers to retailers.”

Talaat founded the company alongside Mahmoud Abdel-Fattah. Before Cartona, Abdel-Fattah founded Speakol, a MENA-focused adtech platform serving 60 million monthly users, while Talaat was the chief commercial officer of agriculture company Lamar Egypt.

Cartona works as an asset-light marketplace. On the platform, grocery retailers can get orders from a curated network of sellers. The company says this way, it can provide visibility through real-time price comparisons and clarity on delivery times.

Also, FMCGs and suppliers can optimize their go-to-market execution through the use of data and analytics. Cartona tops it off by providing embedded finance and access to credit to retailers and suppliers.

Cartona makes money through all these processes. It takes a commission on orders made, charges suppliers for running advertising to merchants (since they compete for the latter’s attention), and provides market insights on buyer behavior, price competition and market share.

“It is time to capitalize on technology beyond warehouses and trucks. Data and technology will transform traditional retail to a digitally native one, which in return will drastically improve the supply chain efficiency,” Abdel-Fattah said about how the company sells information to retailers and suppliers.

Cartona has over 30,000 merchants on its platform. Together, they have processed more than 400,000 orders with an annualized gross merchandise value of EGP 1 billion (~$64 million). Cartona also works with more than 1,000 distributors, wholesalers and 100 FMCG companies, offering consumers more than 10,000 products, including dry, fresh and frozen food.

The company’s business and revenue model is similar to other companies in this space, but the main difference lies in whether they own assets or not.

Taking a look at the players in Egypt, for instance, MaxAB operates its warehouses and fleets; Capiter uses a hybrid model in which it rents these assets and owns inventory when dealing with high-turnover products. But Cartona solely manages an asset-light model.

The CEO tells me that he thinks this model works best for all the stakeholders involved in the retail market. He argues that not owning assets and leasing the ones on the ground shows that the company is trying to improve the operations of existing suppliers and merchants instead of displacing them.

I believe that the infrastructure already exists. We already have many warehouses, many small and medium-sized entrepreneurs, and wholesalers and distributors and companies that have a lot of assets. If you want to fix the problem, we think one should enable the people who are strategically located in small streets all over Egypt and have the infrastructure but don’t have the technology needed to optimize their warehouses and carts.”

The current margins for suppliers with warehouses are slim, and Cartona provides the technology — an inventory and ordering system — to provide efficiency in its supply chain.

The general partner at lead investor Global Ventures, Basil Moftah, said in a statement that Cartona’s technology and not owning inventory proved critical in the firm’s decision to back the company.

“The trade market is one of the most sophisticated, yet [it is] characterized by multiple critical inefficiencies across the value chain,” he said. Cartona’s asset-light approach tackles those inefficiencies by optimizing the trade process in unique ways and does so with minimal capital spent.”

Proceeds of the investment focus on improving this technology, Talaat said. In addition, Cartona is expanding its team and operations beyond two cities in Egypt — Cairo and Alexandria — to other parts.

A longer-term plan might include horizontal and vertical product expansion into pharmaceuticals, electronics and fashion.

21 Sep 2021

Alternative financing startup Pipe snaps up Stripe and HubSpot execs, expands to UK

Pipe, a two-year-old startup that aims to be the “Nasdaq for revenue,” announced today it has snagged former Stripe EIC Sid Orlando and HubSpot’s ex-Chief Strategy Officer Brad Coffey to serve on its executive team.

The Miami-based fintech also revealed today its first expansion outside of the United States with its entry into the U.K. market.

It’s been a good year for Pipe. The buzzy startup has raised $300 million in equity financing this year from a slew of investors, such as Shopify, Slack, Okta, HubSpot, Marc Benioff’s TIME Ventures, Alexis Ohanian’s Seven Seven Six, Chamath Palihapitiya, MaC Ventures, Fin VC, Greenspring Associates and Counterpoint Global (Morgan Stanley), among others.

Since its public launch in June 2020, over 8,000 companies have signed up on the Pipe trading platform. That’s double from the reported “over 4,000” that had signed up at the time of the company’s last raise in May — a $250 million round that valued the company at $2 billion.

Orlando has left her role as editor-in-chief of fintech giant Stripe, where she has worked for over four years, to head up content for Pipe. She was also previously manager of curation and content at Kickstarter. Coffey left HubSpot — where he worked for over 13 years and most recently served as chief strategy officer for nearly 5 — to serve as Pipe’s chief customer officer, where he will be responsible for driving continued growth and expansion of verticals beyond Pipe’s initial launch market of SaaS. Coffey was one of HubSpot’s first employees and witnessed the progression of the company from a startup with $1 million in ARR to a publicly traded company with $1 billion in annual recurring revenue. 

CEO Harry Hurst, Josh Mangel and Zain Allarakhia founded Pipe in September 2019 with the mission of giving SaaS companies a way to get their revenue upfront, by pairing them with investors on a marketplace that pays a discounted rate for the annual value of those contracts. (Pipe describes its buy-side participants as “a vetted group of financial institutions and banks.”)

The goal of the platform is to offer companies with recurring revenue streams access to capital so they don’t dilute their ownership by accepting external capital or get forced to take out loans.

Pipe’s platform has evolved to offer non-dilutive capital to non-SaaS companies as well. In fact, today over 50% of the companies using its platform are non-SaaS companies, compared to 25% in May.

Notably, Coffey led HubSpot’s investment into Pipe last spring and that’s how he first became familiar with the company.

“When I first came across Pipe, I realized they had the opportunity to be a company that not only transforms but also helps a generation of founders get access to the growth capital they’ve never had access to at scale before,” he wrote in an email to TechCrunch. “This was even more obvious when I led HubSpot’s investment in Pipe…where HubSpot provides the software and education, and Pipe can provide the capital. As I got to know the founders and the team through that process, I realized it was an opportunity I didn’t want to miss and had to be a part of.”

Orlando expressed similar sentiments around her decision to join the company.

“Pipe has such an intriguing opportunity to recontour aspects of the funding landscape, providing alternative financing option to founders looking to grow and scale companies on their own terms,” she wrote via email. “Being a part of the early team to build such an impactful product in the market was no doubt a compelling mandate! I’m also struck by Pipe’s team and mission, of pursuing the ambitious vision for leveraging a new asset class with both humility and immense motivation, in service of greater flexibility, agency, equitability and growth opportunities for founders and their teams.”

For Pipe’s Hurst, the new hires signal a new chapter for the company, which continues to grow at a rapid rate.

“There are lots of days on Pipe where tens of millions [of dollars] are traded in a single day. Tens of millions of dollars were being traded every month last time we spoke [in May], he told TechCrunch. “And it’s across a diversified set of customers and different verticals. We are even increasingly helping finance M&As. Growth has been explosive.” 

Tradable annual recurring revenue (ARR) on the Pipe platform is in excess of $2 billion and trending toward $3 billion, according to Hurst.

The company’s expansion into the United Kingdom is significant because while the region has a growing venture ecosystem, capital is not nearly as available to founders as it is in the U.S. Pipe’s availability in the region will give those founders an alternative means of financing, Hurst believes.

“There are a lot of fundamentally healthy companies that don’t have access to financing, period,” he told TechCrunch. “So we believe in the U.K., Pipe will be incredibly impactful and that is evidenced from what we’ve seen already.”

The move also represents a return to the CEO’s roots. 

“I left the U.K. for the United States seven years ago as it provided the best funding environment to build my first technology company, and it is enormously gratifying to bring those same opportunities to the burgeoning ecosystem of technology companies in the U.K.,” he said. “If Pipe existed a decade ago and offered company friendly financing options, I might never have left the U.K. … Now, I’m bringing it home and really excited to be launching in the U.K.” 

With the move, Pipe has opened a microhub in London and 10% of its 55-person team will be based there.