Monthly Archives: November 2020

News: UK to invest in AI and cyber as part of major defense spending hike

The UK has announced a massive boost in defense spending — £16.5 billion ($21.8BN) over four years, the biggest such spending bump for 30 years — in what prime minister Boris Johnson has described as a “once in a generation modernization” of the UK’s armed forces and “the end of the era of retreat” on

The UK has announced a massive boost in defense spending — £16.5 billion ($21.8BN) over four years, the biggest such spending bump for 30 years — in what prime minister Boris Johnson has described as a “once in a generation modernization” of the UK’s armed forces and “the end of the era of retreat” on funding for defense.

Overall the UK prime minister said the spending hike will create 40,000 jobs, adding that it will cement the country’s position as the biggest military defense spender in Europe and the second largest in NATO after the US.

Johnson said the focus for investment will be on cutting edge technologies that can “revolutionize” warfare — implying a major role for artificial intelligence and sensor-laden connected hardware in “forging our military assets into a single network designed to overcome the enemy”, as he put it in a statement to parliament, setting out the first conclusions from an the (ongoing) review of security, defense, development and foreign policy.

“A soldier in hostile territory will be alerted to a distant ambush by sensors or satellites or drones instantly transmitting a warning using artificial intelligence to device the optimal response and offering an array of options — from summoning an air strike to ordering a swarm attack by drones, or paralyzing the enemy with cyber weapons,” Johnson told the House of Commons today, speaking via video conference as he continues to self isolate following a coronavirus contact.

“New advances will surmount the old limits of logistics,” he went on, fleshing out the rational for spending on upgrading military technology. “Our warships and combat vehicles will carry directed energy weapons — destroying targets with inexhaustible lasers. And for them the phrase out of ammunition will become redundant.”

“Nations are racing to master this new doctrine of warfare and our investment is designed to place Britain among the winners,” he added.

The review sets out at least £1.5BN extra — and £5.8BN total — spending on military R&D which Johnson said would be “designed to master the new technologies of warfare”.

There will also be a new R&D center set up with a dedicated focus on artificial intelligence, he added.

An RAF Space Command center is also in the works — with the aim of launching British satellites including the UK’s first rocket from Scotland in 2022.

While the airforce will get new fighter system that Johnson specified will incorporate AI and drone technology.

He also confirmed the existence of a National Cyber Force — a joint unit consisting of personnel from the UK’s intelligence agencies and military personnel which runs cyberops targeting terrorism, organized crime and hostile foreign state actors.

He suggested the hike in military spending on emerging technologies will filter down into wider societal tech gains, telling MPs: “The returns will go far beyond our armed forces — from aerospace to autonomous vehicles — these technologies have a vast array of civilian applications, opening up new vistas of economic progress.”

Responding to Johnson’s statement, the leader of the opposition, Keir Starmer, welcomed the announcement of increased spending for defense and the armed forces — but accused the government of issuing another “press release without a strategy” — pointing out that successive Conservative governments have eroded defense spending over the past ten years.

“This is a spending announcement without a strategy. The government has yet again pushed back vital parts of the integrated review and there’s no clarity over the government’s strategic priorities,” said Starmer, going on to query how the spending hike would be funded, given the economic crunch facing the UK as a result of the pandemic — asking whether it will require tax rises or cuts to public spending elsewhere, such as to the international development budget.

Starmer also raised the awkward matter of the Russia report — wondering why Johnson’s government has not acted on the “urgent” national security risks identified there.

The report, by parliament’s intelligence and security committee, found the UK lacks a comprehensive and cohesive strategy to respond to the cyber threat posed by Russia and other hostile states that are deploying online disinformation and influence ops to target democratic institutions and values.

It also sounded the alarm about how much Russian money is finding its way into UK political party coffers.

“The prime minister speaks of tackling global security threats, improving cyber capability — and that is all welcome, and we welcome it — but four months after the intelligence and security committee published its report concluding that Russia posed… an immediate and urgent threat to our national security,” noted Starmer.

Replying, Johnson dodged all Starmer’s questions — branding his criticisms “humbug [that] takes the cake” and opting to attack the Labour leader for having served under the party’s former leader, Jeremy Corbyn, who did not support increasing UK defense spending.

News: Subtle Medical has raised $12.2 million for medical imaging analysis tools

Using machine learning to analyze medical imaging seems like an obvious application for the novel visualization tools that have been developed over the past decade, and now a clutch of investors have backed Subtle Medical — a company that aims to bring those technologies to the healthcare market. The company has raised $12.2 million in

Using machine learning to analyze medical imaging seems like an obvious application for the novel visualization tools that have been developed over the past decade, and now a clutch of investors have backed Subtle Medical — a company that aims to bring those technologies to the healthcare market.

The company has raised $12.2 million in a new round of funding from investors including: 3E Bioventures Capital with participation from Fusion Fund, Data Collective, Delta Ventures, Tsingyuan Ventures and its seed investors.

The company’s technology has been FDA-cleared and CE-marked and is used to boost image quality and speed up analysis of diagnostic scans, according to a statement.

“Our mission is to make medical imaging better, safer and more comfortable for patients while creating new workflow efficiencies for hospitals and imaging centers,” said Dr. Enhao Gong, the company’s founder and chief executive, in a statement. 

Subtle Medical’s technology is already being used in 50 locations around the world including Affidea, which is the largest imaging service in the European Union.

The company said it would use the new financing to accelerate its go-to-market strategy and its product development.

“Subtle Medical is paving the way for a new generation of AI-powered medical imaging.  In a short time, the company has proven to have a profound impact on the radiology community, and  the value they bring to improve patient care and increase scanner capacity is instrumental and timely in the current healthcare environment,” said Dr. Lue Sun, Vice President at 3E Bioventures. 

News: Afresh has a $100 million valuation and a software service that keeps food fresh in grocery stores

Afresh, a company selling software to track demand and manage orders for fresh produce in grocery stores, is now worth $100 million. That hefty valuation comes on the back of a $13 million extension to the company’s latest round of funding, led by Food Retail Ventures and joined by existing investors Innovation Endeavors, Maersk Growth,

Afresh, a company selling software to track demand and manage orders for fresh produce in grocery stores, is now worth $100 million.

That hefty valuation comes on the back of a $13 million extension to the company’s latest round of funding, led by Food Retail Ventures and joined by existing investors Innovation Endeavors, Maersk Growth, and Baseline Ventures, the company said.

As part of the round, James McCann, the former chief executive of Ahold USA, a supermarket holding company whose subsidiaries include HEB, Supervalu, and Giant, has joined the company’s board of directors.

Companies like Afresh are tackling the problem of food waste with the same kind of enterprise resource planning technologies that manufacturers have adopted — and getting results. Stores using Afresh reduce food waste by a quarter compared to peers without the technology, the company said. These stores also see a 40% boost to their produce operating margins and 2% to 4% topline revenue growth, the company said.

“We headed into 2020 with some incredible momentum from early customer partnerships and validation of our technology. As pandemic set in earlier this year, we were proud of how well our product helped fresh departments adapt during these unpredictable times,” said Matt Schwartz, CEO and co-founder of Afresh, in a statement. “In addition, we’re seeing enormous demand from new customers. So, when industry veterans and inside tech investors came to us and asked if they could double-down on Afresh, we quickly said yes. This new capital will enable us to grow faster and bigger in 2021, thereby accelerating our mission of reducing food waste while making fresh, nutritious food accessible to all.” 

 

News: ZenBusiness snags $55M Series B for its incorporation and growth platform for micro businesses

Starting a small company used to be simple. Get some space on Main Street, put out a shingle, and begin plying your trade. Then the regulatory state came, and so did the internet. Now, entrepreneurs have to apply for licenses — sometimes multiple licenses in multiple states — and also handle all the intricacies of

Starting a small company used to be simple. Get some space on Main Street, put out a shingle, and begin plying your trade. Then the regulatory state came, and so did the internet. Now, entrepreneurs have to apply for licenses — sometimes multiple licenses in multiple states — and also handle all the intricacies of building a fully-online digital presence.

There are products that will help you incorporate, some others that will help you with regulatory burdens, and a whole swath of no-code website builders that will try to find you a unique niche in the digital cosmos. Yet, precious few platforms fully integrate these services in one place and centralize them around the entrepreneur.

ZenBusiness has tried to do all that — and even more — over the past few years. Ross Buhrdorf, who formerly founded HomeAway, started the company to make it easier to start businesses. Along the way, I’ve covered the company’s $4.5 million seed in 2018 and $15 million Series A last year, and now the company has a blockbuster Series B to announce today.

The Austin-based public-benefit corporation raised $55 million led by Alex Lazarow of Cathay Innovation, which will be used to continue growing the company and expand its services. The company hit more than 150 employees (who are operating remotely today), and is looking to add 100 or more in the next year.

What’s driving the company’s growth? For one, while the economy has been hit hard over the past few months in the wake of COVID-19, many small businesses suddenly needed to figure out an online strategy and also potentially apply for licenses and other regulatory requirements in multiple states if employees were operating remotely.

The company says that its revenue grew 100% this year, and it now has more than 80,000 small businesses who have launched on its platform. The company is now on its third generation of its website builder tool, and has also expanded many of its other features as well.

One new area of growth for ZenBusiness has been adding financial services to its product suite under the label of ZenBusiness Money. The startup bought Joust Banking a few months ago, a startup that had raised $4.6 million to offer freelance financial services. Those services are now being integrated into ZenBusiness, and Joust co-founder Lamine Zarrad is now SVP of Product for the company.

ZenBusiness founder and CEO Ross Buhrdorf. Photo via ZenBusiness.

With the funding, Buhrdorf said that the company will continue to expand those banking services, and also add more educational materials for entrepreneurs learning about how to operate and grow their businesses.

He noted that the company has prized and continues to place a huge priority on customer service. “When you call us up, we answer right now within 60 seconds, and we think that’s important. And we answer our emails with a very tight timeframe too, within 24 hours, and many within a few hours. And we’re always on chat.”

As the various spaces that ZenBusiness works in have become more competitive, Buhrdorf believes that his company’s service quality and integration sets it apart. “I’m happy there’s competition out there, that means that this is a vibrant space. We’re just focused on delivering value to our customers and making them successful. If we do that with great service, I think we’ll we have the winning combination.”

In addition to Cathay, other investors in the round included GreatPoint Ventures, Breyer Capital and Omega Venture Partners. Returning investors included Greycroft, Lerer Hippeau, Interlock Partners, mark vc, and Austin local firm ATX Venture Partners.

News: Datafold raises seed from NEA to keep improving the lives of data engineers

Data engineering is one of these new disciplines that has gone from buzzword to mission critical in just a few years. Data engineers design and build all the connections between sources of raw data (your payments information or ad-tracking data or what have you) and the ultimate analytics dashboards used by business executives and data

Data engineering is one of these new disciplines that has gone from buzzword to mission critical in just a few years. Data engineers design and build all the connections between sources of raw data (your payments information or ad-tracking data or what have you) and the ultimate analytics dashboards used by business executives and data scientists to make decisions. As data has exploded, so has their challenge of doing this key work, which is why a new set of tools has arrived to make data engineering easier, faster and better than ever.

One of those tools is Datafold, a YC-backed startup I covered just a few weeks ago as it was preparing for its end-of-summer Demo Day presentation.

Well, that Demo Day presentation and the company’s trajectory clearly caught the eyes of investors, since the startup locked in $2.1 million in seed funding from NEA, the company announced this morning.

As I wrote back in August:

With Datafold, changes made by data engineers in their extractions and transformations can be compared for unintentional changes. For instance, maybe a function that formerly returned an integer now returns a text string, an accidental mistake introduced by the engineer. Rather than wait until BI tools flop and a bunch of alerts come in from managers, Datafold will indicate that there is likely some sort of problem, and identify what happened.

Definitely read our profile if you want to learn more about the product and origin story.

Not a whole heck of a lot has changed over the past few weeks (some new features, some new customers), but with more money in its billfold, Datafold is going to keep on growing, hiring and taking on the world of data engineering.

News: SellerX raises $118M to buy up and grow Amazon marketplace businesses

As Amazon’s Marketplace continues to grow and mature, a new opportunity has emerged in the world of e-commerce for a new breed of startups to consolidate the most promising of the smaller businesses that sell via Amazon’s platform, and build out their own economies of scale within that ecosystem. In the latest development, SellerX —

As Amazon’s Marketplace continues to grow and mature, a new opportunity has emerged in the world of e-commerce for a new breed of startups to consolidate the most promising of the smaller businesses that sell via Amazon’s platform, and build out their own economies of scale within that ecosystem. In the latest development, SellerX — a new outfit in Berlin — has closed a round of $118 million (€100 million) that it plans to use to roll up smaller enterprises that use Fullfilment by Amazon for payments, logistics and delivery for their products.

The round is being co-led by Cherry Ventures, Felix Capital and TriplePoint Capital, with participation also from Village Global, with Zalando co-founder David Schneider, Shutterfly CEO and former Amazon UK CEO Chris North, and the founders of KW Commerce, a big Amazon seller out of Germany (selling mobile phone accessories and home goods), also participating.

Notably, this $118 million is a seed round for the company, the first real money that it has raised to date, and it comes in the form of some equity, but mostly debt, which SellerX will use for acquisitions to play out its strategy, in the words of Malte Horeyseck (who co-founded the startup with Philipp Triebel) to become “the digital Procter & Gamble.”

SellerX’s focus will be “evergreen consumer goods,” said Triebel, in areas like household, pets, garden supplies, goods for kids and beauty. It has made one acquisition to date; and although it declined to disclose to me what it is, Horeyseck said that it, combined possibly with other acquisitions it will make in the coming weeks, will give SellerX a revenue run rate of €20 million by the end of this year.

The horse has well and truly bolted in the world of Amazon marketplace roll-ups: the last several months have seen a number of startups raise large rounds of funding, with sizable proportions of the sums in debt, in order to go out and consolidate the most interesting smaller companies that are selling and getting their orders fulfilled by Amazon.

Just yesterday, another player in this space based out of the U.S. called Heyday announced a round of $175 million. Earlier this week, London-based Heroes announced a $65 million round. Perch raised $123 million last month. Thrasio, another big player in this area, was valued at $1.25 billion in its own debt round earlier this year.

The opportunity is a clear one: the Amazon marketplace has quickly become a major player in the world of e-commerce — a position that has become even more apparent this year, during the Covid-19 global health pandemic, which has led to many people turning away from in-person shopping either out of choice or requirement (in the UK, for example, all ‘non-essential shops’ are currently closed for in-person shopping). In the last quarter the company, which reported revenues of $98 billion, saw product sales of $52 billion, with estimates putting the number of marketplace sellers at just over 50% of that figure. By some accounts Amazon is already responsible for 50% of all online retail, Felix founder and investor Frederic Court noted.

“It is the new high street,” he said in an interview.

At the same time, we’ve seen a flourishing of the concept of “D2C” where companies are bypassing traditional retailers and building their own brands for selling their own unique products on their own terms. Amazon has played a big part in that. Just as a writer can now self-publish on Amazon and bypass getting book deals, you can list your products on Amazon and theoretically get access to a huge audience of shoppers without having to pitch your goods to a buyer who may or may not do your bidding.

On the other side, however, you have huge fragmentation on the platform. As Amazon gets more popular, it makes it harder than ever for individual sellers to get themselves seen, or to differentiate themselves once they are found.

There is also a ton of junk sold on Amazon — there is a whole industry of those who buy off wholesale sites and resell on Amazon, which is one reason why so many merchants seem to sell identical anonymous products.

For the unassuming shopper, it’s nearly impossible to separate the wheat from the chaff — not least also because of the ongoing problems that Amazon has had with the integrity of its review system, and the selling of iffy products (it has worked hard to try to fight all of this, but it still remains an issue).

This makes for a challenging landscape on Amazon, which sometimes feels more held together by its Prime delivery promises and the fact that you can still usually find something to fill your needs not because the goods are great, but because of the sheer size of it being an everything store.

Horeyseck said that the idea behind SellerX (and its many competitors, hopefully) is not to find the most successful companies of all, regardless of how they get there. Rather, its mission is to build a thriving business by focusing on the more interesting sellers that are doing well legitimately and using the Amazon framework to do it, but might lack the capital, expertise or appetite to stick with their enterprises longer term. The idea is to pick these up and apply SellerX’s own analytics and processes, and production relationships that it is building, to pick up these saplings and grow them into trees.

Horeyseck believes that this ultimately can be a win-win on all sides, for SellerX, the smaller merchant, and Amazon itself.

“I think basically everything we are doing will help Amazon have a better quality marketplace,” he said. “This is about creating strong D2C brands, where you get quality every time. Amazon needs that in its marketplace right now.”

Filip Dames, founding partner of Cherry Ventures, said in a statement, “The diverse seller landscape on Amazon provides a unique opportunity to acquire some category-winning, highly profitable products, empower them through technology, and build them into the next-generation consumer brands. The founders Malte and Philipp combine decade-long e-commerce and buy-and-build expertise, which uniquely positions them to capture this opportunity.”

News: Portugal’s Faber reaches $24.3M for its second fund aimed at data-driven startups from Iberia

Portuguese VC Faber has hit the first close of its Faber Tech II fund at €20.5 million ($24.3 million). The fund will focus on early-stage data-driven startups starting from Southern Europe and the Iberian peninsula, with the aim of reaching a final close of €30 million in the coming months. The new fund targets pre-series

Portuguese VC Faber has hit the first close of its Faber Tech II fund at €20.5 million ($24.3 million). The fund will focus on early-stage data-driven startups starting from Southern Europe and the Iberian peninsula, with the aim of reaching a final close of €30 million in the coming months. The new fund targets pre-series A and early-stage startups in Artificial Intelligence, Machine Learning and Data Science.

The fund is backed by European Investment Fund (EIF) and the local Financial Development Institution (IFD), with a joint commitment of €15 million (backed by the Investment Plan for Europe – the Juncker Plan and through the Portugal Tech program), alongside other private institutional and individual investors.

Alexandre Barbosa, Faber’s Managing Partner, said “The success of the first close of our new fund allows us to foresee a growth in the demand for this type of investment, as we believe digital transformation through Intelligence Artificial, Machine Learning and data science are increasingly relevant for companies and their businesses, and we think Southern Europe will be the launchpad of a growing number.”

Faber has already ‘warehoused’ three initial investments. It co-financed a 15.6 million euros Series A for SWORD Health – portuguese startup that created the first digital physiotherapy system combining artificial intelligence and clinical teams. It led the pre-seed round of YData, a startup with a data-centric development platform that provides data science professionals tools to deal with accessing high-quality and meaningful data while protecting its privacy. It also co-financed the pre-seed round of Emotai, a neuroscience-powered analytics and performance-boosting platform for virtual sports.

Faber was a first local investor in the first wave of Portugal’s most promising startups, such as Seedrs (co-founded by Carlos Silva, one f Faber’s Partners) which recently announced its merger with CrowdCube); Unbabel; Codacy and Hole19, among others.

Faber’s main focus is deep-tech and data science startups and as such it’s assembled around 20 experts, researchers, Data Scientists, CTO’s, Founders, AI and Machine Learning professors, as part of its investment strategy.

In particular, it’s created the new role of Professor-in-residence, the first of whom is renowned professor Mário Figueiredo from Lisbon’s leading tech university Instituto Superior Técnico. His interests include signal processing, machine learning, AI and optimization, being a highly cited researcher in these fields.

Speaking to TechCrunch in an interview Barbosa added: “We’ve seen first-time, but also second and third-time entrepreneurs coming over to Lisbon, Porto, Barcelona, Valencia, Madrid and experimenting with their next startup and considering starting-up from Iberia in the first place. But also successful entrepreneurs considering extending their engineering teams to Portugal and building engineering hubs in Portugal or Spain.”

“We’ve been historically countercyclical, so we found that startups came to, and appears in Iberia back in 2012 / 2013. This time around mid-2020, we’re very bullish on what’s we can do for the entrepreneurial engine of the economy. We see a lot happening – especially around our thesis – which is basically the data stack, all things data AI-driven, machine learning, data science, and we see that as a very relevant core. A lot of the transformation and digitization is happening right now, so we see a lot of promising stuff going on and a lot of promising talent establishing and setting up companies in Portugal and Spain – so that’s why we think this story is relevant for Europe as a whole.”

News: Greece’s Marathon Venture Capital completes first close for Fund II, reaching $47M

Marathon Venture Capital in Athens, Greece has completed the first closing of its second fund, reaching the €40m / $47M mark. Backing the new fund is the European Investment Fund, HDBI, as well as corporates, family offices and HNWIs around the world (plus many Greek founders). It plans to invest in Seed-stage startups from €1m

Marathon Venture Capital in Athens, Greece has completed the first closing of its second fund, reaching the €40m / $47M mark. Backing the new fund is the European Investment Fund, HDBI, as well as corporates, family offices and HNWIs around the world (plus many Greek founders). It plans to invest in Seed-stage startups from €1m to 1.5m initial tickets for 15-20% of equity.

Team changes include Thaleia Misailidou being promoted to Principal, and Chris Gasteratos is promoted to Associate.

Marathon’s most prominent portfolio company is Netdata, which last year raised a $17 million Series A led by Bain Capital, and later raised another $14m from Bessemer. On the success side, Uber’s pending $1.4B+ acquisition of BMW/Daimler’s mobility group was in part driven by a Greek startup, Taxibeat, which was earlier acquired by Daimler. Taxibeat was backed by an earlier fund previously created by Tziralis.

Partners George Tziralis and Panos Papadopoulos tell me the fund is focused generally on enterprise/B2B, plus “Greek founders, anywhere”.

Highlights of Fund One’s investments include:

  • Netdata (leading infra monitoring OSS, backed by Bessemer & Bain)
  • Lenses (leader in DataOps, backed by 83North)
  • Hack The Box (cybersecurity adversarial training labs)
  • Learnworlds (business-in-a-box for course creators)
  • Causaly (cause-and-effect discovery in pharma)
  • Augmenta (autonomous precision agriculture)

Tziralis tells me the majority of its next ten companies have already raised a Series A round.

Tziralis and Papadopoulos have been key players in the Greek startups scene, backing many of the first startups to emerge from the country over 13 years ago. And they were enthusiastic backers of our TechCrunch Athens meetup many years ago.

Three years ago, they launched Marathon Venture Capital to take their efforts to the next level. Fund I invested in 10 companies with the first fund, and most have raised a Series A. The portfolio as a whole has raised 4x their total invested amount and maintains an estimated total enterprise value of $350 million.

They’ve also been running the “Greeks in Tech” meetups all over the world – Berlin to London to New York to San Francisco, and many more locations in between, connecting with Greek founders.

News: Juni, the banking platform for e-commerce and online marketing companies, raises €2M seed

Juni, a Swedish pre-launch startup that’s building a banking app and platform for e-commerce and online marketing entrepreneurs, has raised just over €2.1 million in seed funding. Leading the round is Berlin-based Cherry Ventures — the first deal, I believe, from newly recruited partner Sophia Bendz, who herself is based in Sweden. Various angel investors

Juni, a Swedish pre-launch startup that’s building a banking app and platform for e-commerce and online marketing entrepreneurs, has raised just over €2.1 million in seed funding.

Leading the round is Berlin-based Cherry Ventures — the first deal, I believe, from newly recruited partner Sophia Bendz, who herself is based in Sweden. Various angel investors have also backed Juni, including NA-KD founder and CEO Jarno Vanahatapio and iZettle’s former chief strategy and communications officer Johan Bendz.

Founded by Samir El-Sabini and Anders Orsedal and set to launch fully in early 2021, Juni wants to act as a ‘financial companion” for digital businesses in the e-commerce and online marketing space. Features offered include a debit card with cashback on advertising spend, along with cash flow management, invoice and bank statement matching, and liquidity management. The Juni dashboard also provides a centralized overview of all your bank accounts, networks and payment services.

El-Sabini tells me that eventually the company may go the full route of applying for a bank license in 5-7 years, but for the foreseeable future is utilising the infrastructure of Banking-as-a-Service provider Railsbank, along with other fintechs, to plug those gaps. Besides, most of the value-add is the functionality built on top of core banking and it’s here in relation to e-commerce and online marketing companies that Juni thinks it’s spotted a big opportunity.

“We are helping e-commerce and marketing entrepreneurs understand their business financial health, giving them the right tools (credit plus cash-back) to improve it and grow, while at the same time automating their workload (fetching invoices and matching them to transactions). We aim to be the financial companion for all companies in our space”.

“We all know e-commerce is a rapid moving industry (10 years growth in three months time this year!) making the need for singular platforms to support such e-commerce businesses all the more necessary,” says Cherry Ventures’ Bendz.

“E-commerce professionals are trying to keep up with the acceleration of the market and cannot afford to be bogged down triaging various softwares and systems with respect to their finances”.

Although the official product launch isn’t set until early next year, it’s already possible to sign up for the waitlist with the open beta promised soon.

Meanwhile, the business model is straight forward enough. Initially, Juni will make money on interchange fees (minus the cashback it offers) and by charging a subscription in the best SaaS tradition. Credit is also an obvious revenue stream, too.

News: African fintech startup Chipper Cash raises $30M backed by Jeff Bezos

African cross-border fintech startup Chipper Cash has raised a $30 million Series B funding round led by Ribbit Capital with participation of Bezos Expeditions — the personal VC fund of Amazon CEO Jeff Bezos. Chipper Cash was founded in San Francisco in 2018 by Ugandan Ham Serunjogi and Ghanaian Maijid Moujaled. The company offers mobile-based, no fee, P2P

African cross-border fintech startup Chipper Cash has raised a $30 million Series B funding round led by Ribbit Capital with participation of Bezos Expeditions — the personal VC fund of Amazon CEO Jeff Bezos.

Chipper Cash was founded in San Francisco in 2018 by Ugandan Ham Serunjogi and Ghanaian Maijid Moujaled. The company offers mobile-based, no fee, P2P payment services in seven countries: Ghana, Uganda, Nigeria, Tanzania, Rwanda, South Africa and Kenya.

Parallel to its P2P app, the startup also runs Chipper Checkout — a merchant-focused, fee-based payment product that generates the revenue to support Chipper Cash’s free mobile-money business. The company has scaled to 3 million users on its platform and processes an average of 80,000 transactions daily. In June 2020, Chipper Cash reached a monthly payments value of $100 million, according to CEO Ham Serunjogi .

As part of the Series B raise, the startup plans to expand its products and geographic scope. On the product side, that entails offering more business payment solutions, crypto-currency trading options, and investment services.

“We’ll always be a P2P financial transfer platform at our core. But we’ve had demand from our users to offer other value services…like purchasing cryptocurrency assets and making investments in stocks,” Serunjogi told TechCrunch on a call.

Image Credits: Chipper Cash

Chipper Cash has added beta dropdowns on its website and app to buy and sell Bitcoin and invest in U.S. stocks from Africa — the latter through a partnership with U.S. financial services company DriveWealth.

“We’ll launch [the stock product] in Nigeria first so Nigerians have the option to buy fractional stocks — Tesla shares, Apple shares or Amazon shares and others — through our app. We’ll expand into other countries thereafter,” said Serunjogi.

On the business financial services side, the startup plans to offer more API payments solutions. “We’ve been getting a lot of requests from people on our P2P platform, who also have business enterprises, to be able to collect payments for sale of goods,” explained Serunjogi.

Chipper Cash also plans to use its Series B financing for additional country expansion, which the company will announce by the end of 2021.

Jeff Bezos’s backing of Chipper Cash follows a recent string of events that has elevated the visibility of Africa’s startup scene. Over the past decade, the continent’s tech ecosystem has been one of the fastest growing in the world by year year-over-year expansion in venture capital and startup formation, concentrated in countries such as Nigeria, Kenya, and South Africa.

Africa Top VC Markets 2019

Image Credits: TechCrunch/Bryce Durbin

Bringing Africa’s large unbanked population and underbanked consumers and SMEs online has factored prominently. Roughly 66% of Sub-Saharan Africa’s 1 billion people don’t have a bank account, according to World Bank data.

As such, fintech has become Africa’s highest-funded tech sector, receiving the bulk of an estimated $2 billion in VC that went to startups in 2019. Even with the rapid venture funding growth over the last decade, Africa’s tech scene had been performance light, with only one known unicorn (e-commerce venture Jumia) a handful of exits, and no major public share offerings. That changed last year.

In April 2019, Jumia — backed by investors including Goldman Sachs and Mastercard — went public in an NYSE IPO. Later in the year, Nigerian fintech company Interswitch achieved unicorn status after a $200 million investment by Visa.

This year, Network International purchased East African payments startup DPO for $288 million and in August WorldRemit acquired Africa focused remittance company Sendwave for $500 million.

One of the more significant liquidity events in African tech occurred last month, when Stripe acquired Nigerian payment gateway startup Paystack for a reported $200 million.

In an email to TechCrunch, a spokesperson for Bezos Expeditions confirmed the fund’s investment in Chipper Cash, but declined to comment on further plans to back African startups. Per Crunchbase data, the investment would be the first in Africa for the fund. It’s worth noting Bezos Expeditions is not connected to Jeff Bezo’s hallmark business venture, Amazon.

For Chipper Cash, the $30 million Series B raise caps an event-filled two years for the San Francisco-based payments company and founders Ham Serunjogi and Maijid Moujaled. The two came to America for academics, met in Iowa while studying at Grinnell College and ventured out to Silicon Valley for stints in big tech: Facebook for Serunjogi and Flickr and Yahoo! for Moujaled.

Chipper Cash founders Ham Serunjogi (R) and Maijid Moujaled; Image Credits: Chipper Cash

The startup call beckoned and after launching Chipper Cash in 2018, the duo convinced 500 Startups and Liquid 2 Ventures — co-founded by American football legend Joe Montana — to back their company with seed funds. The startup expanded into Nigeria and Southern Africa in 2019, entered a payments partnership with Visa in April and raised a $13.8 million Series A in June.

Chipper Cash founder Ham Serunjogi believes the backing of his company by a notable tech figure, such as Jeff Bezos (the world’s richest person), has benefits beyond his venture.

“It’s a big deal when a world class investor like Bezos or Ribbit goes out of their sweet spot to a new area where they previously haven’t done investments,” he said. “Ultimately, the winner of those things happening is the African tech ecosystem overall, as it will bring more investment from firms of that caliber to African startups.”

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