Category: Enterprise

Remote, Hybrid, or In-Person?



We have been watching our portfolio of ~130 technology companies wrestle with this decision for the last two and a half years. Brought on by the covid pandemic and the work from home moment that it created, there has been a sea change in the way that technology companies organize themselves to get work done.

Ben Horowitz observed this in a piece last week where he described A16Z’s decision to embrace a hybrid model that he called “HQ in the Cloud.”

It turns out that running a technology company remotely works pretty darned well. It’s not perfect, but mitigating the cultural issues associated with remote work turns out to be easier than mitigating the employee satisfaction issues associated with forcing everyone into the office 5 days/week. 

https://a16z.com/2022/07/21/a16z-is-moving-to-the-cloud/

Most people are happier having a lot of flexibility around where they work. We have seen that people who are raising families have benefitted from the flexibility of working closer to where their families are and the ability to be somewhere quickly. But that is only one example of why flexibility around where you work is so powerful. Many job functions require, or at least benefit from, the ability to concentrate without interruption or distraction. A quiet home office is vastly better than a busy open workspace for that kind of work.

And then there is the commute. I am writing this on a commuter train heading into NYC. For a time in my life, I took a train like this (Read more...)

Working Multiple Jobs


This post is by Fred Wilson from AVC


Since 2016, I have been working “half time” at USV and taking half of a partner’s carry. That has allowed me to allocate more time to things like building green buildings with the Gotham Gal, building a philanthropic organization with the Gotham Gal, sitting on non-profit and civic boards, and a few other things.

The truth is I still work at least 40 hours a week at USV, probably a fair bit more some weeks, but I still have time to spend on these other things and my partners understand that I am doing that and my compensation reflects that.

The move away from commuting to the office, spending eight hours a day or more there, and the rise of working remotely has upended so much in the last 18 months and one of the things I am noticing is how many people are doing what I am doing – working multiple jobs at the same time.

I am not talking about freelancing, consulting, and the other forms of working for many clients. I am talking about holding down multiple full-time jobs at the same time. Early in the pandemic, there was a story about a software engineer that had full-time jobs at both Google and Facebook. It was somewhat amusing to read that Google and Facebook were being played like that, but the truth is this is happening all over the place.

In some cases, like mine, the employer(s) know about the arrangement and the compensation reflects it. In (Read more...)

Fivetran hauls in $565M on $5.6B valuation, acquires competitor HVR for $700M



Fivetran, the data connectivity startup, had a big day today. For starters it announced a $565 million investment on $5.6 billion valuation, but it didn’t stop there. It also announced its second acquisition this year, snagging HVR, a data integration competitor that had raised over $50M, for $700 million in cash and stock.

The company last raised a $100 million Series C on a $1.2 billion valuation, increasing the valuation by over 5x. As with that Series C, Andreessen Horowitz was back leading the round with participation from other double dippers General Catalyst, CEAS Investments, Matrix Partners and other unnamed firms or individuals. New investors ICONIQ Capital, D1 Capital Partners and YC Continuity also came along for the ride. The company reports it has now raised $730 million.

The HVR acquisition represents a hefty investment for the startup, grabbing a company for a price that is almost equal to all the money it has raised to date, but it provides a way to expand its market quickly by buying a competitor. Earlier this year Fivetran acquired Teleport Data as it continues to add functionality and customers via acquisition.

“The acquisition — a cash and stock deal valued at $700 million — strengthens Fivetran’s market position as one of the data integration leaders for all industries and all customer types,” the company said in a statement.

While that may smack of corporate marketing speak, there is some truth (Read more...)

Skello raises $47.3 million for its employee scheduling tool



French startup Skello has raised a $47.3 million funding round (€40 million). The company has been working on a software-as-a-service tool that lets you manage the work schedule of your company. What makes it special is that Skello automatically takes into account local labor laws and collective agreements.

Partech is leading today’s funding round. Existing investors XAnge and Aglaé Ventures are also participating. The startup had previously raised a €300,000 seed round and a €6 million Series A round in 2018.

Skello works with companies across many industries, such as retail, hospitality, pharmacies, bakeries, gyms, escape games and more. And many of them were simply using Microsoft Excel to manage their schedule.

By using Skello, you get an online service that works for both managers and employees. On the manager side, you can view who is working and when. You can assign employees to fill some gaps.

For employees, they can also connect to the platform to see their own schedule. Employees can also say when they are unavailable and request time off. And when something unexpected comes up, employees can trade shifts.

“We really want to put employees at the center of the product,” co-founder and CEO Quitterie Mathelin-Moreaux told me. “They have a mobile app and the idea is to make the work schedule as collaborative as possible in order to allocate resources as efficiently as possible and increase team retention.”

At every step of the scheduling process, Skello manages legal requirements. For instance, Skello remembers mandatory weekly (Read more...)

Ledgy is an equity management tool for European startups



Every startup founder faces the same issue — how do you manage your cap table and equity plans in a transparent and lightweight manner? If you’re based in the U.S., chances are you’re using an equity management solution like Carta. But if you’re not based in the U.S., you don’t have a ton of options.

Ledgy wants to become the ownership management tool for the rest of the world. Based in Switzerland, several well-known European startups are already using Ledgy, such as Wefox, Kry, Bitpanda, Gorillas and Trade Republic.

The company recently closed a $10 million Series A funding round led by Sequoia Capital. Other investors in the round include Xavier Niel, Harry Stebbings, Visionaries Club, UiPath's Daniel Dines and Front's Mathilde Collin. Some of Ledgy’s existing investors also invested once again, such as Myke Näf, Paul Sevinç, btov Partners, Creathor Ventures and VI Partners.

A few years ago, when Ledgy co-founder and CEO Yoko Spirig talked with an entrepreneur, the founder showed her how he managed ownership. He opened an Excel spreadsheet and scrolled, scrolled, scrolled… “Each line represented a share. You can imagine how error-prone it is,” she told me.

While the implementation was odd, most companies in Europe are still using Excel spreadsheets to manage ownership. And Ledgy wants to convince those companies that switching to a software solution that has been specifically designed to solve this issue could be beneficial.

“The key has really been to focus on the software infrastructure. What we do is (Read more...)

Extra Crunch roundup: Toast and Freshbook S-1s, pre-pitch tips, flexible funding lessons



The digital transformation currently sweeping society has likely reached your favorite local restaurant.

Since 2013, Boston-based Toast has offered bars and eateries a software platform that lets them manage orders, payments and deliveries.

Over the last year, its customers have processed more than $38 billion in gross payment volume, so Alex Wilhelm analyzed the company’s S-1 for The Exchange with great interest.

“Toast was last valued at just under $5 billion when it last raised, per Crunchbase data,” he writes. “And folks are saying that it could be worth $20 billion in its debut. Does that square with the numbers?”


Full Extra Crunch articles are only available to members.
Use discount code ECFriday to save 20% off a one- or two-year subscription.


Airbnb, DoorDash and Coinbase each debuted at past Y Combinator Demo Days; as of this writing, they employ a combined 10,000 people.

Today and tomorrow, TechCrunch reporters will cover the proceedings at YC’s Summer 20201 Demo Day. In addition to writing up founder pitches, they’ll also rank their favorites.

Even remotely, I can feel a palpable sense of excitement radiating from our team — anything can happen at YC Demo Day, so sign up for Extra Crunch to follow the action.

Thanks very much for reading; I hope you have an excellent week.

Walter Thompson
Senior Editor, TechCrunch
@yourprotagonist

How Amazon EC2 grew from a notion into a foundational element of cloud computing

Image Credits: Ron Miller/TechCrunch

In August 2006, AWS activated (Read more...)

Databricks raises $1.6B at $38B valuation as it blasts past $600M ARR



Databricks this morning confirmed earlier reports that it was raising new capital at a higher valuation. The data- and AI-focused company has secured a $1.6 billion round at a $38 billion valuation, it said. Bloomberg first reported last week that Databricks was pursuing new capital at that price.

The Series H was led by Counterpoint Global, a Morgan Stanley fund. Other new investors included Baillie Gifford, UC Investments and ClearBridge. A grip of prior investors also kicked in cash to the round.

The new funding brings Databricks’ total private funding raised to $3.5 billion. Notably, its latest raise comes just seven months after the late-stage startup raised $1 billion on a $28 billion valuation. Its new valuation represents paper value creation in excess of $1 billion per month.

The company, which makes open source and commercial products for processing structured and unstructured data in one location, views its market as a new technology category. Databricks calls the technology a data “lakehouse,” a mashup of data lake and data warehouse.

Databricks CEO and co-founder Ali Ghodsi believes that its new capital will help his company secure market leadership.

For context, since the 1980s, large companies have stored massive amounts of structured data in data warehouses. More recently, companies like Snowflake and Databricks have provided a similar solution for unstructured data called a data lake.

In Ghodsi’s view, combining structured and unstructured data in a single place with the ability for customers to execute data science and business-intelligence work (Read more...)

Our investment in Sikoia’s $2.3M seed round to cut through the Fintech noise with a plug & play data and API platform


This post is by Polina Stavrovski from Seedcamp


Sikoia Co-Founders from left to right: Alastair Bulger (CCO), Harry Singh (Technical Director), Alexis Rog (CEO), and Stephen Simmons (Chief Data Officer)

The financial ecosystem is a tricky one. Many different entities have to interact with tedious workflows that make transparent and data-driven decision-making difficult. Sikoia aims to solve this by acting as the unified data platform for financial services to reduce regulatory risk and enable faster decision making. Sikoia’s modular enterprise platform supports various enterprises such as tech companies, lenders, advisers, and fintechs through purpose-built workflows, offering 100+ APIs to pick and choose from, as well as millions of data points to support enterprises’ decision-making. 

We’re beyond excited to back the Sikoia team along with Earlybird and industry angels including Raffael Johnen (CEO of Auxmoney), Fabian Weseman (CFO of Wefox), and Charlie Delingpole (CEO of ComplyAdvantage). 

“Thousands of APIs are opening siloed data sources globally at a rapid pace, but the explosion in the number of touchpoints has created significant complexity and it’s increasingly difficult to integrate this dynamic ecosystem in existing back-end systems and processes,” Alexis Rog, CEO and co-founder of Sikoia, said. “We couldn’t find a comprehensive solution that didn’t require complex manual configuration and lengthy integration. So we decided to build it.” 

With over fifty years of experience in financial technology between Alexis, Stephen, Alastair and Harry, we are convinced that this is the best team to help cut through the noise of an increasingly fragmented Fintech service provider landscape. The four founders’ professional careers are (Read more...)

‘No code’ process automation platform, Leapwork, fires up with $62M Series B



Copenhagen-based process automation platform Leapwork has snagged Denmark’s largest ever Series B funding round, announcing a $62 million raise co-led by KKR and Salesforce Ventures, with existing investors DN Capital and Headline also participating.

Also today it’s disclosing that its post-money valuation now stands at $312M. 

The ‘no code’ 2015-founded startup last raised back in 2019, when it snagged a $10M Series A. The business was bootstrapped through earlier years — with the founders putting in their own money, garnered from prior successful exits. Their follow on bet on ‘no code’ already looks to have paid off in spades: Since launching the platform in 2017, Leapwork has seen its customer base more than double year on year and it now has a roster of 300+ customers around the world paying it to speed up their routine business processes.

Software testing is a particular focus for the tools, which Leapwork pitches at enterprises’ quality assurance and test teams.

It claims that by using its ‘no code’ tech — a label for the trend which refers to software that’s designed to be accessible to non-technical staff, greatly increasing its utility and applicability — businesses can achieve a 10x faster time to market, 97% productivity gains, and a 90% reduction in application errors. So the wider pitch is that it can support enterprises to achieve faster digital transformations with only their existing mix of in-house skills. 

Customers include the likes of PayPal, Mercedes-Benz and BNP Paribas.

Leapwork’s own business, meanwhile, has (Read more...)

Ramp and Brex draw diverging market plans with M&A strategies



Earlier today, spend management startup Ramp said it has raised a $300 million Series C that valued it $3.9 billion. It also said it was acquiring Buyer, a “negotiation-as-a-service” platform that it believes will help customers save money on purchases and SaaS products.

The round and deal were announced just a week after competitor Brex shared news of its own acquisition — the $50 million purchase of Israeli fintech startup Weav. That deal was made after Brex’s founders invested in Weav, which offers a “universal API for commerce platforms”.

From a high level, all of the recent deal-making in corporate cards and spend management shows that it’s not enough to just help companies track what employees are expensing these days. As the market matures and feature sets begin to converge, the players are seeking to differentiate themselves from the competition.

But the point of interest here is these deals can tell us where both companies think they can provide and extract the most value from the market.

These differences come atop another layer of divergence between the two companies: While Brex has instituted a paid software tier of its service, Ramp has not.

Earning more by spending less

Let’s start with Ramp. Launched in 2019, the company is a relative newcomer in the spend management category. But by all accounts, it’s producing some impressive growth numbers. As our colleague Mary Ann Azevedo wrote this morning:

Since the beginning of 2021, the company says it has seen its number (Read more...)