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Friday, January 15, 2021

Facebook blocks new events around DC and state capitols

As a precaution against coordinated violence as the US approaches President-elect Joe Biden’s inauguration, Facebook announced a few new measures it’s putting in place.

In a blog post and tweets from Facebook Policy Communications Director Andy Stone, the company explained that it would block any events slated to happen near the White House, the U.S. Capitol or any state capitol building through Wednesday.

The company says it will also do “secondary” sweeps through any inauguration-related events to look for violations of its policies. At this point, that includes any content connected to the “Stop the Steal” movement perpetuating the rampant lie that Biden’s victory is illegitimate. Those groups continued to thrive on Facebook until measures the company took at the beginning of this week.

Facebook will apparently also be putting new restrictions in place for U.S. users who repeatedly break the company’s rules, including barring those accounts from livestreaming videos, events and group pages.

Those precautions fall short of what some of Facebook’s critics have called for, but they’re still notable measures for a company that only began taking dangerous conspiracies and armed groups seriously in the last year.



from Social – TechCrunch https://ift.tt/eA8V8J Facebook blocks new events around DC and state capitols Taylor Hatmaker https://ift.tt/3bKMpZY
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GitLab raises $195M in secondary funding on $6B valuation

GitLab has confirmed with TechCrunch that it raised a $195 million secondary round on a $6 billion valuation. CNBC broke the story earlier today.

The company’s impressive valuation comes after its most recent 2019 Series E in which it raised $268 million on a 2.75 billion valuation, an increase of $3.25 billion in under 18 months. Company co-founder and CEO Sid Sijbrandij believes the increase is due to his company’s progress adding functionality to the platform.

“We believe the increase in valuation over the past year reflects the progress of our complete DevOps platform towards realizing a greater share of the growing, multi-billion dollar software development market,” he told TechCrunch.

While the startup has raised over $434 million, this round involved buying employee stock options, a move that allows the company’s workers to cash in some of their equity prior to going public. CNBC reported that the firms buying the stock included Alta Park, HMI Capital, OMERS Growth Equity, TCV and Verition.

The next logical step would appear to be IPO, something the company has never shied away from. In fact, it actually at one point included the proposed date of November 18, 2020 as a target IPO date on the company wiki. While they didn’t quite make that goal, Sijbrandij still sees the company going public at some point. He’s just not being so specific as in the past, suggesting that the company has plenty of runway left from the last funding round and can go public when the timing is right.

“We continue to believe that being a public company is an integral part of realizing our mission. As a public company, GitLab would benefit from enhanced brand awareness, access to capital, shareholder liquidity, autonomy and transparency,” he said.

He added, “That said, we want to maximize the outcome by selecting an opportune time. Our most recent capital raise was in 2019 and contributed to an already healthy balance sheet. A strong balance sheet and business model enables us to select a period that works best for realizing our long-term goals.”

GitLab has not only published IPO goals on its Wiki, but its entire company philosophy, goals and OKRs for everyone to see. Sijbrandij told TechCrunch’s Alex Wilhelm at a TechCrunch Disrupt panel in September that he believes that transparency helps attract and keep employees. It doesn’t hurt that the company was and remains a fully remote organization, even pre-COVID.

“We started [this level of] transparency to connect with the wider community around GitLab, but it turned out to be super beneficial for attracting great talent as well,” Sijbrandij told Wilhelm in September.

The company, which launched in 2014, offers a DevOps platform to help move applications through the programming lifecycle.



https://ift.tt/eA8V8J GitLab raises $195M in secondary funding on $6B valuation https://ift.tt/3oPDWIK

Daily Crunch: WhatsApp responds to privacy backlash

WhatsApp delays enforcement of a controversial privacy change, Apple may get rid of the Touch Bar in future MacBooks and Bumble files to go public. This is your Daily Crunch for January 15, 2021.

The big story: WhatsApp responds to privacy backlash

Earlier this month, WhatsApp sent users a notification asking them to consent to sharing some of their personal data — such as phone number and location — with Facebook (which owns WhatsApp). The alert also said users would have to agree to the terms by February 8 if they wanted to continue using the app.

This change prompted legal threats and an investigation from the Turkish government. Now the company is pushing the enforcement date back three months.

“No one will have their account suspended or deleted on February 8. We’re also going to do a lot more to clear up the misinformation around how privacy and security works on WhatsApp,” the company said in a post. “We’ll then go to people gradually to review the policy at their own pace before new business options are available on May 15.”

The tech giants

Uber planning to spin out Postmates’ delivery robot arm — Postmates X is seeking investors in its bid to become a separate company.

Apple said to be planning new 14- and 16-inch MacBook Pros with MagSafe and Apple processors — This could be the end for the Touch Bar.

Amazon’s newest product lets companies build their own Alexa assistant for cars, apps and video games — Yes, that means your next car could have two Alexas.

Startups, funding and venture capital

Bumble files to go public — The company plans to list on the Nasdaq stock exchange, using the ticker symbol “BMBL.”

Tracy Chou launches Block Party to combat online harassment and abuse — Currently available for Twitter, Block Party helps people filter out the content they don’t want to see.

Everlywell raises $75M from HealthQuest Capital following its recent $175M Series D round — Everlywell develops at-home testing kits for a range of health concerns, and it added a COVID-19 home collection test kit last year.

Advice and analysis from Extra Crunch

Fifteen steps to fundraising a new VC or private equity fund — Launching is easy; fundraising is harder.

Lessons from Top Hat’s acquisition spree — The acquisition of Fountainhead Press marks Top Hat’s third purchase of a publishing company in the past 12 months.

Twilio CEO Jeff Lawson says wisdom lies with your developers — Takeaways from Lawson’s new book “Ask Your Developer.”

(Extra Crunch is our membership program, which aims to democratize information about startups. You can sign up here.)

Everything else

Video game spending increased 27% in 2020 — According to the latest figures from NPD, spending on gaming hardware, software and accessories was up 25% in December and 27% for the full year.

DOT evaluated 11 GPS replacements and found only one that worked across use cases —  The government wants to create additional redundancy and resiliency in the sector.

The Daily Crunch is TechCrunch’s roundup of our biggest and most important stories. If you’d like to get this delivered to your inbox every day at around 3pm Pacific, you can subscribe here.



from Social – TechCrunch https://ift.tt/2CoAoqu Daily Crunch: WhatsApp responds to privacy backlash Anthony Ha https://ift.tt/35FJsWP
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Twitter’s vision of decentralization could also be the far-right’s internet endgame

This week, Twitter CEO Jack Dorsey finally responded publicly to the company’s decision to ban President Trump from its platform, writing that Twitter had “faced an extraordinary and untenable circumstance” and that he did not “feel pride” about the decision. In the same thread, he took time to call out a nascent Twitter-sponsored initiative called “bluesky,” which is aiming to build up an “open decentralized standard for social media” that Twitter is just one part of.

Researchers involved with bluesky reveal to TechCrunch an initiative still in its earliest stages that could fundamentally shift the power dynamics of the social web.

Bluesky is aiming to build a “durable” web standard that will ultimately ensure that platforms like Twitter have less centralized responsibility in deciding which users and communities have a voice on the internet. While this could protect speech from marginalized groups, it may also upend modern moderation techniques and efforts to prevent online radicalization.

Jack Dorsey, co-founder and chief executive officer of Twitter Inc., arrives after a break during a House Energy and Commerce Committee hearing in Washington, D.C., U.S., on Wednesday, Sept. 5, 2018. Republicans pressed Dorsey for what they said may be the “shadow-banning” of conservatives during the hearing. Photographer: Andrew Harrer/Bloomberg via Getty Images

What is bluesky?

Just as Bitcoin lacks a central bank to control it, a decentralized social network protocol operates without central governance, meaning Twitter would only control its own app built on bluesky, not other applications on the protocol. The open and independent system would allow applications to see, search and interact with content across the entire standard. Twitter hopes that the project can go far beyond what the existing Twitter API offers, enabling developers to create applications with different interfaces or methods of algorithmic curation, potentially paying entities across the protocol like Twitter for plug-and-play access to different moderation tools or identity networks.

A widely adopted, decentralized protocol is an opportunity for social networks to “pass the buck” on moderation responsibilities to a broader network, one person involved with the early stages of bluesky suggests, allowing individual applications on the protocol to decide which accounts and networks its users are blocked from accessing.

Social platforms like Parler or Gab could theoretically rebuild their networks on bluesky, benefitting from its stability and the network effects of an open protocol. Researchers involved are also clear that such a system would also provide a meaningful measure against government censorship and protect the speech of marginalized groups across the globe.

Bluesky’s current scope is firmly in the research phase, people involved tell TechCrunch, with about 40-50 active members from different factions of the decentralized tech community surveying the software landscape and putting together proposals for what the protocol should ultimately look like. Twitter has told early members that it hopes to hire a project manager in the coming weeks to build out an independent team that will start crafting the protocol itself.

Bluesky’s initial members were invited by Twitter CTO Parag Agrawal early last year. It was later determined that the group should open the conversation up to folks representing some of the more recognizable decentralized network projects, including Mastodon and ActivityPub, which joined the working group hosted on the secure chat platform Element.

Jay Graber, founder of decentralized social platform Happening, was paid by Twitter to write up a technical review of the decentralized social ecosystem, an effort to “help Twitter evaluate the existing options in the space,” she tells TechCrunch.

“If [Twitter] wanted to design this thing, they could have just assigned a group of guys to do it, but there’s only one thing that this little tiny group of people could do better than Twitter, and that’s not be Twitter,” said Golda Velez, another member of the group who works as a senior software engineer at Postmates and co-founded civ.works, a privacy-centric social network for civic engagement.

The group has had some back and forth with Twitter executives on the scope of the project, eventually forming a Twitter-approved list of goals for the initiative. They define the challenges that the bluesky protocol should seek to address while also laying out what responsibilities are best left to the application creators building on the standard.

A Twitter spokesperson declined to comment.

Parrot.VC Twitter account

Image: TechCrunch

Who is involved

The pain points enumerated in the document, viewed by TechCrunch, encapsulate some of Twitter’s biggest shortcomings. They include “how to keep controversy and outrage from hijacking virality mechanisms,” as well as a desire to develop “customizable mechanisms” for moderation, though the document notes that the applications, not the overall protocol, are “ultimately liable for compliance, censorship, takedowns etc.”

“I think the solution to the problem of algorithms isn’t getting rid of algorithms — because sorting posts chronologically is an algorithm — the solution is to make it an open pluggable system by which you can go in and try different algorithms and see which one suits you or use the one that your friends like,” says Evan Henshaw-Plath, another member of the working group. He was one of Twitter’s earliest employees and has been building out his own decentralized social platform called Planetary.

His platform is based on the secure scuttlebutt protocol, which allows users to browse networks offline in an encrypted fashion. Early on, Planetary had been in talks with Twitter for a corporate investment as well as a personal investment from CEO Jack Dorsey, Henshaw-Plath says, but the competitive nature of the platform prompted some concern among Twitter’s lawyers and Planetary ended up receiving an investment from Twitter co-founder Biz Stone’s venture fund Future Positive. Stone did not respond to interview requests.

After agreeing on goals, Twitter had initially hoped for the broader team to arrive at some shared consensus, but starkly different viewpoints within the group prompted Twitter to accept individual proposals from members. Some pushed Twitter to outright adopt or evolve an existing standard while others pushed for bluesky to pursue interoperability of standards early on and see what users naturally flock to.

One of the developers in the group hoping to bring bluesky onto their standard was Mastodon creator Eugen Rochko, who tells TechCrunch he sees the need for a major shift in how social media platforms operate globally.

“Banning Trump was the right decision though it came a little bit too late. But at the same time, the nuance of the situation is that maybe it shouldn’t be a single American company that decides these things,” Rochko tells us.

Like several of the other members in the group, Rochko has been skeptical at times about Twitter’s motivation with the bluesky protocol. Shortly after Dorsey’s initial announcement in 2019, Mastodon’s official Twitter account tweeted out a biting critique, writing, “This is not an announcement of reinventing the wheel. This is announcing the building of a protocol that Twitter gets to control, like Google controls Android.”

Today, Mastodon is arguably one of the most mature decentralized social platforms. Rochko claims that the network of decentralized nodes has more than 2.3 million users spread across thousands of servers. In early 2017, the platform had its viral moment on Twitter, prompting an influx of “hundreds of thousands” of new users alongside some inquisitive potential investors whom Rochko has rebuffed in favor of a donation-based model.

Image Credits: TechCrunch

Inherent risks

Not all of the attention Rochko has garnered has been welcome. In 2019, Gab, a social network favored by right-wing extremists, brought its entire platform onto the Mastodon network after integrating the platform’s open-source code, bringing Mastodon its single biggest web of users and its most undesirable liability all at once.

Rochko quickly disavowed the network and aimed to sever its ties to other nodes on the Mastodon platform and convince application creators to do the same. But a central fear of decentralization advocates was quickly realized, as the platform type’s first “success story” was a home for right-wing extremists.

This fear has been echoed in decentralized communities this week as app store owners and networks have taken another right-wing social network, Parler, off the web after violent content surfaced on the site in the lead-up to and aftermath of riots at the U.S. Capitol, leaving some developers fearful that the social network may set up home on their decentralized standard.

“Fascists are 100% going to use peer-to-peer technologies, they already are and they’re going to start using it more… If they get pushed off of mainstream infrastructure or people are surveilling them really closely, they’re going to have added motivation,” said Emmi Bevensee, a researcher studying extremist presences on decentralized networks. “Maybe the far-right gets stronger footholds on peer-to-peer before the people who think the far-right is bad do because they were effectively pushed off.”

A central concern is that commoditizing decentralized platforms through efforts like bluesky will provide a more accessible route for extremists kicked off current platforms to maintain an audience and provide casual internet users a less janky path towards radicalization.

“Peer-to-peer technology is generally not that seamless right now. Some of it is; you can buy Bitcoin in Cash App now, which, if anything, is proof that this technology is going to become much more mainstream and adoption is going to become much more seamless,” Bevensee told TechCrunch. “In the current era of this mass exodus from Parler, they’re obviously going to lose a huge amount of audience that isn’t dedicated enough to get on IPFS. Scuttlebutt is a really cool technology but it’s not as seamless as Twitter.”

Extremists adopting technologies that promote privacy and strong encryption is far from a new phenomenon, encrypted chat apps like Signal and Telegram have been at the center of such controversies in recent years. Bevensee notes the tendency of right-wing extremist networks to adopt decentralized network tech has been “extremely demoralizing” to those early developer communities — though she notes that the same technologies can and do benefit “marginalized people all around the world.”

Though people connected to bluesky’s early moves see a long road ahead for the protocol’s development and adoption, they also see an evolving landscape with Parler and President Trump’s recent deplatforming that they hope will drive other stakeholders to eventually commit to integrating with the standard.

“Right at this moment I think that there’s going to be a lot of incentive to adopt, and I don’t just mean by end users, I mean by platforms, because Twitter is not the only one having these really thorny moderation problems,” Velez says. “I think people understand that this is a critical moment.”



from Social – TechCrunch https://ift.tt/2XJNby5 Twitter’s vision of decentralization could also be the far-right’s internet endgame Lucas Matney https://ift.tt/39E3SQX
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Daily Crunch: WhatsApp responds to privacy backlash

{rss:content:encoded} Daily Crunch: WhatsApp responds to privacy backlash https://ift.tt/35FJsWP https://ift.tt/2CoAoqu January 16, 2021 at 12:07AM

WhatsApp delays enforcement of a controversial privacy change, Apple may get rid of the Touch Bar in future MacBooks and Bumble files to go public. This is your Daily Crunch for January 15, 2021.

The big story: WhatsApp responds to privacy backlash

Earlier this month, WhatsApp sent users a notification asking them to consent to sharing some of their personal data — such as phone number and location — with Facebook (which owns WhatsApp). The alert also said users would have to agree to the terms by February 8 if they wanted to continue using the app.

This change prompted legal threats and an investigation from the Turkish government. Now the company is pushing the enforcement date back three months.

“No one will have their account suspended or deleted on February 8. We’re also going to do a lot more to clear up the misinformation around how privacy and security works on WhatsApp,” the company said in a post. “We’ll then go to people gradually to review the policy at their own pace before new business options are available on May 15.”

The tech giants

Uber planning to spin out Postmates’ delivery robot arm — Postmates X is seeking investors in its bid to become a separate company.

Apple said to be planning new 14- and 16-inch MacBook Pros with MagSafe and Apple processors — This could be the end for the Touch Bar.

Amazon’s newest product lets companies build their own Alexa assistant for cars, apps and video games — Yes, that means your next car could have two Alexas.

Startups, funding and venture capital

Bumble files to go public — The company plans to list on the Nasdaq stock exchange, using the ticker symbol “BMBL.”

Tracy Chou launches Block Party to combat online harassment and abuse — Currently available for Twitter, Block Party helps people filter out the content they don’t want to see.

Everlywell raises $75M from HealthQuest Capital following its recent $175M Series D round — Everlywell develops at-home testing kits for a range of health concerns, and it added a COVID-19 home collection test kit last year.

Advice and analysis from Extra Crunch

Fifteen steps to fundraising a new VC or private equity fund — Launching is easy; fundraising is harder.

Lessons from Top Hat’s acquisition spree — The acquisition of Fountainhead Press marks Top Hat’s third purchase of a publishing company in the past 12 months.

Twilio CEO Jeff Lawson says wisdom lies with your developers — Takeaways from Lawson’s new book “Ask Your Developer.”

(Extra Crunch is our membership program, which aims to democratize information about startups. You can sign up here.)

Everything else

Video game spending increased 27% in 2020 — According to the latest figures from NPD, spending on gaming hardware, software and accessories was up 25% in December and 27% for the full year.

DOT evaluated 11 GPS replacements and found only one that worked across use cases —  The government wants to create additional redundancy and resiliency in the sector.

The Daily Crunch is TechCrunch’s roundup of our biggest and most important stories. If you’d like to get this delivered to your inbox every day at around 3pm Pacific, you can subscribe here.

Tracy Chou launches Block Party to combat online harassment and abuse

Block Party, an anti-harassment startup that aims to help folks feel safer on social media founded by Tracy Chou, launched today. Currently only available for Twitter, Block Party helps people filter out the content they don’t want to see and into what Block Party calls the Lockout Folder. That’s where all of the filtered-out content lives in the event you want to review it later.

“We think it’s important to still acknowledge that these people exist,” Chou told me.

If you pretend like it doesn’t exist, you might miss out on useful information or genuine connections.

“There’s a lot of good stuff that would get lost there,” she said. “There is a reason we use public platforms like Twitter.”

On the more negative side, she said, you still may need to check periodically to see if there’s someone threatening your physical safety.

Helpers play a big part of the Block Party experience. You can grant a trusted helper access to your Lockout Folder to let you know if there’s anything useful in there, or to simply block the trolls.

“It’s a lot easier for someone else to help you process it and flag something that is a concern,” she said. “It’s nice to be able to share that burden. The current design of most of these platforms is to put the burden of dealing with it solely on the person who’s being abused.”

The Lockout Folder also serves as a record-keeping tool in the event you need to present evidence of your harassment to a company, a lawyer or someone else.

Image Credits: Screenshot/Block Party

“It’s really about trying to make people’s lives easier,” Chou said. “It’s just so painful to have to see the abuse again when you’re filing the report.”

Block Party emerged from Chou’s own experiences working at platform companies like Facebook and Quora, as well as her experience as an outspoken advocate for diversity and inclusion in tech. At Quora, the block button was one of the first things she built after being harassed on the platform, Chou told me.

“There’s that perspective of having been on the inside and seeing how product and engineering teams work,” Chou said. “But also being a DEI activist and seeing how lack of representation on teams has impacted product decisions for the worst.”

Although Block Party is only available for Twitter users, the goal is to add other platforms and help folks address harassers that target them across multiple platforms. Block Party is currently free but plans to introduce subscription tiers. Still, Chou said she envisions the free version always existing.

To date, Block Party has raised a little less than $1.5 million in funding. Its lead pre-seed round was led by Charles Hudson of Precursor Ventures. Other investors include Alexia Bonatsos, Ellen Pao, Alex Stamos and others.

 



https://ift.tt/3nLhbV2 Tracy Chou launches Block Party to combat online harassment and abuse https://ift.tt/2LrNE5J

WhatsApp delays enforcement of privacy terms by 3 months, following backlash

WhatsApp said on Friday that it won’t enforce its new data-sharing policy until May 15, weeks after news about the new terms created confusion among its users, exposed the Facebook-app to a potential lawsuit, launched a nationwide investigation, and drove a lot of its loyal fans to explore alternative messaging apps.

“We’re now moving back the date on which people will be asked to review and accept the terms. No one will have their account suspended or deleted on February 8. We’re also going to do a lot more to clear up the misinformation around how privacy and security works on WhatsApp. We’ll then go to people gradually to review the policy at their own pace before new business options are available on May 15,” the firm said in a blog post.

The messaging app, which serves more than two billion users, said it was delaying the enforcement of the new terms, which it first unveiled last year, over “confusion” it has created worldwide. The delay of the planned privacy update is aimed at providing users with more time to review the terms, the company said.

“We’ve heard from so many people how much confusion there is around our recent update. There’s been a lot of misinformation causing concern and we want to help everyone understand our principles and the facts,” said the company, which earlier this week ran full-page ads on several Indian newspapers.

Through an in-app alert, WhatsApp had asked users earlier this month to agree to new terms of conditions that grants the app the consent to share with Facebook some personal data about them, such as their phone number and location. Users will have to agree to these terms by February 8 if they wish to continue using the app, the alert said. The change has been mischaracterized by many as their personal communication being compromised, which WhatsApp also clarified this week was not the case.

WhatsApp, which Facebook bought for $19 billion in 2014, has been sharing some limited information about its users with Facebook since 2016.

“With these updates, none of that is changing. Instead, the update includes new options people will have to message a business on WhatsApp, and provides further transparency about how we collect and use data. While not everyone shops with a business on WhatsApp today, we think that more people will choose to do so in the future and it’s important people are aware of these services. This update does not expand our ability to share data with Facebook,” WhatsApp wrote today.

Following the backlash, tens of millions of confused and angered users flocked to Signal and Telegram. In an interview with TechCrunch earlier this week, Signal co-founder and chairman executive Brian Acton said “the smallest of events helped trigger the largest of outcomes. We’re also excited that we are having conversations about online privacy and digital safety and people are turning to Signal as the answer to those questions.”

More to follow…



from Social – TechCrunch https://ift.tt/eA8V8J WhatsApp delays enforcement of privacy terms by 3 months, following backlash Manish Singh https://ift.tt/3iiNLw5
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Bumble files to go public

The dating and networking service Bumble has filed to go public.

The company, launched by a former co-founder of the IAC-owned Tinder, plans to list its share on the Nasdaq stock exchange, using the ticker symbol “BMBL.” Bumble’s planned IPO was first reported in December.

Bumble CEO Whitney Wolfe Herd was on the founding team at Tinder before starting Bumble. She filed suit against Tinder for sexual harassment and discrimination, which was at least somewhat inspirational in her quest to build a dating app that put women in the driver’s seat.

In 2019, Wolfe Herd took the helm of MagicLab, renamed to Bumble Group, in a $3 billion deal with Blackstone, replacing Badoo founder and CEO Andrey Andreev following a harassment scandal at the firm.

The company is targeting the public markets at a particularly heady time for new offerings, with investors embracing venture-backed IPOs throughout late 2020 and the start of 2021. Previously privately held companies like Airbnb, Affirm, and others have seen their fortunes soar on the back of prices that public investors are willing to pay, perhaps inducing more IPO filings than the market might have otherwise seen.

You can read its IPO filing here. TechCrunch will have its usual tear-down of the document later today, but we have pulled some top-line numbers for you to kick off your own research.

But before we do, the company’s board makeup, namely that it is over 70% women is already drawing plaudits. Now, into its numbers.

Inside Bumble’s IPO filing

Let’s consider Bumble from three perspectives: Usage, financial results, and ownership.

On the usage front, Bumble is popular, as you would imagine a dating would have to be to reach the scale required to go public. The company claims 42 million monthly active users (MAUs) as of Q3 2020 — many companies will try to get public on the strength of their third-quarter results from 2020, as it takes time to close Q4 and the full calendar year.

Those 42 million MAUs translated into 2.4 million total paying users through the first nine months of 2020; the percent, then, of paying users to MAUs is not 2.4 million divided by 42, but a smaller fraction.

Turning to the numbers, recall that Bumble sold a majority of itself a few years back. We bring that up as Bumble’s financial results are complicated thanks to its ownership structure.

After the IPO, Bumble Inc. will “be a holding company, and its sole material asset will be a controlling equity interest in Bumble Holdings,” per the S-1 filing. So, how is Bumble Holdings doing?

Medium? Doing the sums ourselves as the company’s S- 1 is fraught with accounting nuances, in the first nine months of 2019, Bumble managed the following:

  • Revenues of $362.6 million
  • Net income of $68.6 million

And then, combining two columns to provide a similar set of results for the same period of 2020, Bumble recorded:

  • Revenues of $416.6 million
  • Net income of -$116.7 million

For those following along, we’re using the “Net (loss) earnings” line, for profitability, and not the “Net (loss) earnings attributable to owners / shareholders” as that would require even more explanation and we’re keeping it simple in this first look.

While Bumble saw modest growth in 2020 through Q3 and a sharp swing to losses on a GAAP basis, the company’s adjusted profitability grew over the same time period. The company’s adjusted EBITDA, a very non-GAAP metric, expanded from $80.0 million in the first three quarters of 2019 to $108.3 million in the same period of 2020.

While we are generally willing to allow quickly-growing companies some leniency when it comes to adjusted metrics, the gap between Bumble’s GAAP losses and its EBITDA results is a stress-test of our compassion. Bumble also swung from free cash flow positivity during the first nine months of 2019 to the first quarters of 2020.

If you extrapolate Bumble’s Q1, Q2, and Q3 revenue to a full-year number, the company could manage $555.5 million in 2020 revenues. Even at a modest software-ish multiple, the company would be worth more than the $3 billion figure that we discussed before.

However, its sharp unprofitability in 2020 could damper its eventual valuation. More as we dig more deeply into the filing.

Finally, on the ownership question the company’s filing is surprisingly denuded of data. Its principal shareholder section looks like this:

When we know more, we’ll share more. Until then, happy S-1 reading.



https://ift.tt/3qsUDKv Bumble files to go public https://ift.tt/3suYzw4

Bumble files to go public

{rss:content:encoded} Bumble files to go public https://ift.tt/3suYzw4 https://ift.tt/3qsUDKv January 15, 2021 at 06:26PM

The dating and networking service Bumble has filed to go public.

The company, launched by a former co-founder of the IAC-owned Tinder, plans to list its share on the Nasdaq stock exchange, using the ticker symbol “BMBL.” Bumble’s planned IPO was first reported in December.

Bumble CEO Whitney Wolfe Herd was on the founding team at Tinder before starting Bumble. She filed suit against Tinder for sexual harassment and discrimination, which was at least somewhat inspirational in her quest to build a dating app that put women in the driver’s seat.

In 2019, Wolfe Herd took the helm of MagicLab, renamed to Bumble Group, in a $3 billion deal with Blackstone, replacing Badoo founder and CEO Andrey Andreev following a harassment scandal at the firm.

The company is targeting the public markets at a particularly heady time for new offerings, with investors embracing venture-backed IPOs throughout late 2020 and the start of 2021. Previously privately held companies like Airbnb, Affirm, and others have seen their fortunes soar on the back of prices that public investors are willing to pay, perhaps inducing more IPO filings than the market might have otherwise seen.

You can read its IPO filing here. TechCrunch will have its usual tear-down of the document later today, but we have pulled some top-line numbers for you to kick off your own research.

But before we do, the company’s board makeup, namely that it is over 70% women is already drawing plaudits. Now, into its numbers.

Inside Bumble’s IPO filing

Let’s consider Bumble from three perspectives: Usage, financial results, and ownership.

On the usage front, Bumble is popular, as you would imagine a dating would have to be to reach the scale required to go public. The company claims 42 million monthly active users (MAUs) as of Q3 2020 — many companies will try to get public on the strength of their third-quarter results from 2020, as it takes time to close Q4 and the full calendar year.

Those 42 million MAUs translated into 2.4 million total paying users through the first nine months of 2020; the percent, then, of paying users to MAUs is not 2.4 million divided by 42, but a smaller fraction.

Turning to the numbers, recall that Bumble sold a majority of itself a few years back. We bring that up as Bumble’s financial results are complicated thanks to its ownership structure.

After the IPO, Bumble Inc. will “be a holding company, and its sole material asset will be a controlling equity interest in Bumble Holdings,” per the S-1 filing. So, how is Bumble Holdings doing?

Medium? Doing the sums ourselves as the company’s S- 1 is fraught with accounting nuances, in the first nine months of 2019, Bumble managed the following:

  • Revenues of $362.6 million
  • Net income of $68.6 million

And then, combining two columns to provide a similar set of results for the same period of 2020, Bumble recorded:

  • Revenues of $416.6 million
  • Net income of -$116.7 million

For those following along, we’re using the “Net (loss) earnings” line, for profitability, and not the “Net (loss) earnings attributable to owners / shareholders” as that would require even more explanation and we’re keeping it simple in this first look.

While Bumble saw modest growth in 2020 through Q3 and a sharp swing to losses on a GAAP basis, the company’s adjusted profitability grew over the same time period. The company’s adjusted EBITDA, a very non-GAAP metric, expanded from $80.0 million in the first three quarters of 2019 to $108.3 million in the same period of 2020.

While we are generally willing to allow quickly-growing companies some leniency when it comes to adjusted metrics, the gap between Bumble’s GAAP losses and its EBITDA results is a stress-test of our compassion. Bumble also swung from free cash flow positivity during the first nine months of 2019 to the first quarters of 2020.

If you extrapolate Bumble’s Q1, Q2, and Q3 revenue to a full-year number, the company could manage $555.5 million in 2020 revenues. Even at a modest software-ish multiple, the company would be worth more than the $3 billion figure that we discussed before.

However, its sharp unprofitability in 2020 could damper its eventual valuation. More as we dig more deeply into the filing.

Finally, on the ownership question the company’s filing is surprisingly denuded of data. Its principal shareholder section looks like this:

When we know more, we’ll share more. Until then, happy S-1 reading.

Corporate credit card platform Moss raises $25.5 million

German startup Moss has raised a $25.5 million (€21 million) funding round led by Valar Ventures. Existing investors Cherry Ventures and Global Founders Capital are also participating. Moss provides credit cards and a spending platform to small and medium businesses in Germany.

The company has developed its own risk engine to come up with a credit card limit for your company. Like Brex in the U.S., Moss promises higher credit card limits compared to credit cards offered by traditional financial institutions.

Again, Moss doesn’t offer prepaid or debit cards — it focuses on credit cards. You can spend within your limits and pay at the end of the month. You don’t need to top up your Moss account to start using it.

Credit cards work on the Mastercard network. Admins can issue a physical card for each employee or each team. You can also issue virtual cards for online payments and subscriptions. You can set different limits for each card.

From the administration panel, you can track expenses, search for specific expenses and see your ongoing subscriptions — it helps you identify duplicates. Users can attach receipts and information to each transaction for accounting purposes.

The company has issued 1,000 credit cards and has processes 10,000 transactions so far. Right now, its clients include startups and tech companies. But Moss expects to expand to other industries soon thanks to today’s funding round.

Moss competes with Spendesk, Revolut Business and others. These corporate card products focus on debit cards. Let’s see if offering credit cards turns out to be an important differentiating feature.



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Rapid growth in 2020 reveals OKR software market’s untapped potential

Last year, a number of startups building OKR-focused software raised lots of venture capital, drawing TechCrunch’s attention.

Why is everyone making software that measures objectives and key results? we wondered with tongue in cheek. After all, how big could the OKR software market really be?

It’s a sub-niche of corporate planning tools! In a world where every company already pays for Google or Microsoft’s productivity suite, and some big software companies offer similar planning support, how substantial could demand prove for pure-play OKR startups?


The Exchange explores startups, markets and money. Read it every morning on Extra Crunch, or get The Exchange newsletter every Saturday.


Pretty substantial, we’re finding out. After OKR-focused Gtmhub announced its $30 million Series B the other day, The Exchange reached out to a number of OKR-focused startups we’ve previously covered and asked about their 2020 growth.

Gtmhub had released new growth metrics along with its funding news, plus we had historical growth data from some other players in the space. So let’s peek at new and historical numbers from Gthmhub, Perdoo, WorkBoard, Ally.io, Koan and WeekDone.

Growth (and some caveats)

A startup growing 400% in a year from a $50,000 ARR base is not impressive. It would be much more impressive to grow 200% from $1 million ARR, or 150% from $5 million.

So, percentage growth is only so good, as metrics go. But it’s also one that private companies are more likely to share than hard numbers, as the market has taught startups that sharing real data is akin to drowning themselves. Alas.

As we view the following, bear in mind that a simply higher percentage growth number does not indicate that a company added more net ARR than another; it could be growing faster from a smaller base. And some companies in the mix did not share ARR growth, but instead disclosed other bits of data. We got what we could.

Gtmhub:

  • 400% ARR growth, 2019
  • 300% ARR growth, 2020
  • More: The company has seen strong ACV growth and its reportedly strong gross margins from 2019 held up in 2020, it said.
  • TechCrunch coverage

Perdoo:

  • 240% paid customer growth, 2020
  • 340% user base growth, 2020
  • Given strong market demand, a company representative told The Exchange that Perdoo had to restrict its free tier to 10 users.
  • TechCrunch coverage

WorkBoard:



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Everlywell raises $75M from HealthQuest Capital following its recent $175M Series D round

At-home health testing kit startup Everlywell has raised $75 million, following the close of the $175 million Series D it announced in December. The new funding comes from HealthQuest Capital, and sees the fund’s founder and managing partners Dr. Garheng Kong join the company’s board of directors. The new funding is a secondary sale, with proceeds used to provide liquidity to existing investors rather than further diluting shares, so the startup’s $1.3 billion valuation from December still holds.

HealthQuest Capital’s investment portfolio has a heavy focus on commercialization of diagnostics businesses, and the company’s parent obviously has a board network of partners including hospitals, and healthcare payers, both of which are going to be very strategically useful to Everlywell as it looks to scale its business on the enterprise side.

Austin-based Everlywell develops at-home testing kits for a range of health concerns, including thyroid issues, allergies and food sensitivity. The company also added a COVID-19 home collection test kit in 2020, and that has resulted in a lot of growth – both from the COVID test itself, and for its other range of products, according to Everlywell CEO and founder Julia Cheek, who I spoke to in December for the Series D raise.

Having HealthQuest’s venture arm on board as a partner could help it take its direct-to-consumer business and further develop a complementary enterprise operation. The company already works with employers and health plans, but this should definitely help accelerate that aspect of its business as it looks towards more growth in 2021 and beyond.



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