Category: AfterPay

Out of water


This post is by Om Malik from On my Om


Death Valley, CA. Photo By Om. Made with Leica SL2.

Sitting inside my concrete cocoon, mid-way between the soaring blue sky and the shaded San Francisco side street, I can see the blue waters of the San Francisco bay. It all looks and feels quite normal. The temperate morning with the occasional waft of chilly air reminds me of my good fortune to live in this beautiful city. I don’t like to think about the eventual big one.  

I have just showered. For some, success means being rich, famous, owning fancy cars, or big mansions. As long as I have lived, I have considered long, lazy showers the ultimate luxury. For me, the shower is an allegory of ambition and success. And soon, it might become a reminder of what we might be losing as a society. 

***

I grew up in Delhi before making America my home. My parents were neither rich nor poor. They were somewhere in the vast middle, which had its spectrum of success and ambition, where you sat on that spectrum defined what you had as part of your daily life. 

For most of my early life, my family didn’t have things that most take for granted — television, telephone, and even a refrigerator. Eventually, those luxuries would come into our household, some slowly, some very slowly. One of the things we couldn’t take for granted was water. Our family’s water came from a tap — and the water availability was as much an act (Read more...)

Dovetail, the venture studio that has worked with startups like Afterpay, is raising a new fund



A photo of Dovetail co-founders Ash Fogelberg and Nick Frandsen

Dovetail co-founders Ash Fogelberg and Nick Frandsen

Based in Sydney and Auckland, Dovetail is a full-service venture studio that works closely with founders who have a great idea, but may lack technical backgrounds. Dovetail helps them build companies from the ground up, preparing them for growth and more funding. Founded in 2014, Dovetail’s success stories include Afterpay, the Melbourne-headquartered unicorn that is one of the highest-profile players in the buy now, play later space, along with Klarna and Affirm.

“People can think of us as the technical co-founder, responsible for driving and executing product strategy, design and the development of scalable products,” Dovetail co-founder Nick Frandsen told TechCrunch.

Dovetail is currently raising a $10 million AUD (about $7.5 million USD) fund that will be used for seed, Series A and Series B rounds in 15 of the most promising companies that have gone through its venture studio program. As an investor, Dovetail has written check sizes ranging from $150,000 to $1 million AUD.

One of Dovetail’s goals is prepare startups to seek funding from other VCs; firms that have invested in Dovetail’s portfolio companies include Blackbird, Qantas and Wavemaker.

“By the time we need to make an investment decision, we would have worked collaboratively on a day-to-day basis with them for at least three months prior to a seed round and 12 months for a Series A. This means we’re essentially investing (Read more...)

As buy-now-pay-later startups keep raising capital, a dive into Klarna, Afterpay and Affirm’s earnings



Venture capitalists continue to fund buy-now-pay-later (BNPL) startups, evidence of ongoing optimism regarding not only e-commerce, but the specific model for financing consumer purchases as well.

Evidence of continued investor confidence in the BNPL space cropped up several times in the second quarter. Divido, a startup that TechCrunch described as a “white-label [BNPL] platform for retail finance that integrates with e-commerce platforms,” raised $30 million. And Zilch raised $80 million for an “over-the-top” BNPL solution.


The Exchange explores startups, markets and money. 

Read it every morning on Extra Crunch or get The Exchange newsletter every Saturday.


Zilch is now worth $800 million.

There are other examples, but those will suffice to get us into the correct mindset for today’s work as we look back at data points regarding the financial performance of more mature BNPL tech companies. So, as in February when we were looking at Q4 2020 numbers, today we’re looking into the more recent performance of Klarna, Affirm and Afterpay.

Growth versus profitability

As startups scale, they focus a bit more on profitability. Super-early-stage startups aren’t often too worried about net margins, for example, as their revenues can be nascent and their costs rising as they staff up for a product launch or another similar event.

But as those same startups mature into unicorn territory, questions about their model’s profitability on a unit basis, operating cash burn and aggregate profitability will start to pop up. The Rule of 40 is a startup rubric for a reason.

And (Read more...)

As buy-now-pay-later startups keep raising capital, a dive into Klarna, Afterpay and Affirm’s earnings



Venture capitalists continue to fund buy-now-pay-later (BNPL) startups, evidence of ongoing optimism regarding not only e-commerce, but the specific model for financing consumer purchases as well.

Evidence of continued investor confidence in the BNPL space cropped up several times in the second quarter. Divido, a startup that TechCrunch described as a “white-label [BNPL] platform for retail finance that integrates with e-commerce platforms,” raised $30 million. And Zilch raised $80 million for an “over-the-top” BNPL solution.


The Exchange explores startups, markets and money. 

Read it every morning on Extra Crunch or get The Exchange newsletter every Saturday.


Zilch is now worth $800 million.

There are other examples, but those will suffice to get us into the correct mindset for today’s work as we look back at data points regarding the financial performance of more mature BNPL tech companies. So, as in February when we were looking at Q4 2020 numbers, today we’re looking into the more recent performance of Klarna, Affirm and Afterpay.

Growth versus profitability

As startups scale, they focus a bit more on profitability. Super-early-stage startups aren’t often too worried about net margins, for example, as their revenues can be nascent and their costs rising as they staff up for a product launch or another similar event.

But as those same startups mature into unicorn territory, questions about their model’s profitability on a unit basis, operating cash burn and aggregate profitability will start to pop up. The Rule of 40 is a startup rubric for a reason.

And (Read more...)