Monthly Archives: February 2021

News: BeGreatTV to offer MasterClass-like courses taught by Black and brown innovators

BeGreatTV, an online education platform featuring Black and brown instructors, recently closed a $450K pre-seed round from Stand Together Ventures Lab, Arlan Hamilton, Tiffany Haddish and others. The goal with BeGreatTV is to enable anyone to learn from talented Black and brown innovators and leaders, founder and CEO Cortney Woodruff told TechCrunch. “When you think

BeGreatTV, an online education platform featuring Black and brown instructors, recently closed a $450K pre-seed round from Stand Together Ventures Lab, Arlan Hamilton, Tiffany Haddish and others.

The goal with BeGreatTV is to enable anyone to learn from talented Black and brown innovators and leaders, founder and CEO Cortney Woodruff told TechCrunch.

“When you think of being a Black or brown person or individual who wants to learn from a Black or brown person, there’s nothing that really exists that gives you a glossary of every business vertical and where you see representation at every level in a well put together way,” Woodruff said. “That alone makes our market a lot larger because there are just so many verticals where no one has really invested in or shown before.”

The courses are designed to teach folks how to execute and succeed in a particular industry, enable people to better understand the business aspect of industries while also teaching “you how to deal with the socioeconomic and racial injustices that come with being the only one in the room. Whether you are a Black man or woman who wants to get into the makeup industry, there will always be a lot of biases in the world.”

When BeGreatTV launches in a couple of months (the plan is to launch in April), the platform will feature at least 10 courses — each with around 15 episodes — focused on arts, entertainment, beauty and more. At launch, courses will be available from Sir John, a celebrity makeup artist for L’Oreal and Beyoncé’s personal makeup artist, BeGreatTV co-founder Cortez Bryant, who was also Lil Wayne and Drake’s manager, as well as Law Roach, Zendaya’s stylist.

Hamilton and Haddish will also teach their own respective courses on business and entertainment, Woodruff said. So far, BeGreatTV has produced more than 40 episodes that range anywhere from three to 15 minutes each.

Image Credits: BeGreatTV

Each course will cost $64.99, and the plan is to eventually offer an all-access subscription model once BeGreatTV beefs up its offerings a bit more. For instructors, BeGreatTV shares royalties with them.

“Ultimately, the platform can include a more diverse casting of instructors that aren’t just Black and brown,” Woodruff said. But for now, he said, the idea is to “reverse the course of ‘Now this is our first Black instructor’ but ‘now this is the first white instructor’” on the platform.

BeGreatTV’s team consists of just 15 people, but includes heavy hitters like Cortez and actor Jesse Williams. Currently, BeGreatTV is working on closing its seed round and anticipates a six-figure user base by the end the year.

MasterClass is perhaps BeGreatTV’s biggest competitor. With classes taught by the likes of Gordon Ramsay, Shonda Rhimes and David Sedaris, it’s no wonder why MasterClass has become worth more than $800 million. The company’s $180 annual subscription fee accounts for all of its revenue.

“If you benchmark [BeGreatTV] to MasterClass, we are finding individuals that are not only the best at what they do in the world, but often times these individuals have broken barriers because often times they were the first to do it,” Woodruff said. “And do it without having people who look like them.”

 

News: Myanmar’s new military government is now blocking Twitter

Myanmar’s new military government has ordered local telecom operators, internet gateways, and other internet service providers to block Twitter and Instagram in the South Asian country days after imposing a similar blackout on Facebook service to ensure “stability” in the Southeast Asian nation. Norwegian telecom giant Telenor, which is one of the largest telecos in

Myanmar’s new military government has ordered local telecom operators, internet gateways, and other internet service providers to block Twitter and Instagram in the South Asian country days after imposing a similar blackout on Facebook service to ensure “stability” in the Southeast Asian nation.

Norwegian telecom giant Telenor, which is one of the largest telecos in Myanmar, said the government has ordered ISPs to block Twitter and Instagram “until further notice.” The telecom operator added that it is challenging the “necessity and proportionality of the directive in its response to Myanmar Ministry of Transport and Communications, and highlighted the directive’s contradiction with international human rights law.”

It adds: “Telenor Group is gravely concerned with this development in Myanmar, and emphasises that freedom of expression through access to communication services should be maintained at all times, especially during times of conflict. Customers in Myanmar trying to access the affected services on web will be directed to a landing page, which states that the site cannot be reached due to the directive by MoTC. Telenor Group believes in open communication. Together with Telenor Myanmar we are actively looking to restore access to the services as soon as possible.”

Several users from Myanmar confirmed that they were unable to access Twitter. NetBlocks, which tracks global internet usage, further reported that multiple networks in the country had started to block the American social network.

⚠ Confirmed: Twitter is now being restricted in #Myanmar on multiple network providers; real-time network data show loss of service from ~10:00 p.m. local time with operators MPT, Mytel, Welink, 5BB and Frontiir 📉

📰https://t.co/Jgc20OBk27 pic.twitter.com/jXUj6ONhmH

— NetBlocks (@netblocks) February 5, 2021

The nation’s Transport and Communications alleged in its order, dated February 5, that Twitter and Facebook-owned Instagram were being abused to spread propaganda and misinformation to the public and this posed threat to stability of the nation. The ministry offered the same explanation when it ordered to temporarily block Facebook until February 7th midnight earlier this week.

Friday’s order comes as thousands of Myanmar citizens joined Twitter this week to protest the new military government that seized power by detaining civilian leader Aung San Suu Kyi and other democratically elected leaders of her National League for Democracy, which won by landslide last year.

Twitter did not immediately respond to a request for comment.

This is a developing story. More to follow…

News: Lightspeed’s Gaurav Gupta and Grafana’s Raj Dutt discuss pitch decks, pricing and how to nail the narrative

This week on Extra Crunch Live, the duo explained how they came together for Grafana’s Series A — and eventually, its Series B. We’ve included highlights as well as the full video of our conversation.

Before he was a partner at Lightspeed Venture Partners, Gaurav Gupta had his eye on Grafana Labs, the company that supports open-source analytics platform Grafana. But Raj Dutt, Grafana’s co-founder and CEO, played hard to get.

This week on Extra Crunch Live, the duo explained how they came together for Grafana’s Series A — and eventually, its Series B. They also walked us through Grafana’s original Series A pitch deck before Gupta shared the aspects that stood out to him and how he communicated those points to the broader partnership at Lightspeed.

Gupta and Dutt also offered feedback on pitch decks submitted by audience members and shared their thoughts about what makes a great founder presentation, pulling back the curtain on how VCs actually consume pitch decks.

We’ve included highlights below as well as the full video of our conversation.

We record new episodes of Extra Crunch Live each Wednesday at 12 p.m. PST/3 p.m. EST/8 p.m. GMT. Check out the February schedule here.

Episode breakdown:

  • How they met — 2:20
  • Grafana’s early pitch deck — 12:25
  • The enterprise ecosystem — 26:00
  • The pitch deck teardown — 33:00

How they met

As soon as Gupta joined Lightspeed in June 2019, he began pursuing Dutt and Grafana Labs. He texted, called and emailed, but he got little to no response. Eventually, he made plans to go meet the team in Stockholm but, even then, Dutt wasn’t super responsive.

The pair told the story with smiles on their faces. Dutt said that not only was he disorganized and not entirely sure of his own travel plans to see his co-founder in Stockholm, Grafana wasn’t even raising. Still, Gupta persisted and eventually sent a stern email.

“At one point, I was like ‘Raj, forget it. This isn’t working’,” recalled Gupta. “And suddenly he woke up.” Gupta added that he got mad, which “usually does not work for VCs, by the way, but in this case, it kind of worked.”

When they finally met, they got along. Dutt said they were able to talk shop due to Gupta’s experience inside organizations like Splunk and Elastic. Gupta described the trip as a whirlwind, where time just flew by.

“One of the reasons that I liked Gaurav is that he was a new VC,” explained Dutt. “So to me, he seemed like one of the most non-VC VCs I’d ever met. And that was actually quite attractive.”

To this day, Gupta and Dutt don’t have weekly standing meetings. Instead, they speak several times a week, conversing organically about industry news, Grafana’s products and the company’s overall trajectory.

Grafana’s early pitch deck

Dutt shared Grafana’s pre-Series A pitch deck — which he actually sent to Gupta and Lightspeed before they met — with the Extra Crunch Live audience. But as we know now, it was the conversations that Dutt and Gupta had (eventually) that provided the spark for that deal.

News: Learn about the importance of accessible product design at TechCrunch Sessions: Justice

When you are able to navigate a world that is designed for you, it’s easy to avoid thinking about how the world is designed for you. But it can be different if you are disabled. At TechCrunch Sessions: Justice on March 3, we will examine the importance of ensuring accessible product design from the beginning.

When you are able to navigate a world that is designed for you, it’s easy to avoid thinking about how the world is designed for you. But it can be different if you are disabled.

At TechCrunch Sessions: Justice on March 3, we will examine the importance of ensuring accessible product design from the beginning. We’ll ask how the social and medical models of disability influence technological evolution. Integrating the expertise of disabled technologists, makers, investors, scientists, software engineers into the DNA of your company from the very beginning is vital to the pursuit of a functioning and equitable society. And could mean you don’t leave money on the table.

Join us at TechCrunch Sessions: Justice for a wide-ranging discussion as we attempt to answer these questions and further explore inclusive design with Cynthia Bennett, Mara Mills and Srin Madipalli.

Cynthia Bennett is a post-doc at Carengie Mellon University’s Human-Computer Interaction Institute, as well as a researcher at Apple. Her research focuses on  human-computer interaction, accessibility and Disability Studies, and, she says on her website, spans “the critique and development of HCI theory and methods to designing emergent accessible interactions with technology.” Her research includes Biographical Prototypes: Reimagining Recognition and Disability in Design and The Promise of Empathy: Design, Disability, and Knowing the “Other.”

Mara Mills is the Associate Professor of Media, Culture, and Communication at New York University and a co-founder and co-director of the NYU Center for Disability Studies. Mills research focuses on sound studies, disability studies and history. (You can hear her discuss the intersection of artificial intelligence and disability with Meredith Whittaker, co-founder of the AI Now Institute and Minderoo Research Professor at NYU, and Sara Hendren, professor at Olin College of Engineering and author of the recently published What Can a Body Do: How We Meet the Built World, on the TechCrunch Mixtape podcast here.)

Srin Madipalli is an investor and co-founder of Accomable, an online platform that helped users find accessible vacation properties, which he sold to Airbnb. His advocacy work focuses on disability inclusion iBe sure to snag your tickets here for just $5 here.n the workplace, as well as advising tech companies on accessibility.

Make sure you can join us for this conversation and more at TC Sessions: Justice on March 3. Secure your seat now!

 

News: How the GameStop stonkathon helped Robinhood raise $3.4B last week

In a single week, Robinhood raised more money than all startups in Spain, Italy, Ireland, Poland, Austria, Hungary and Russia combined last year.

Robinhood has shown an impressive ability to raise enormous amounts of capital in the past few weeks to ensure it has the funds needed to allow users to trade and, presumably, provide it with enough cash until it goes public. Raising $3.4 billion so quickly is an extraordinary feat.

But how the company managed to get investors to wire money with such alacrity has been a curiosity; what about Robinhood was so compelling that giving it a multi-billion dollar injection was such an obvious decision?


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


We got a whiff of it when we parsed Robinhood’s Q4 2020 payment for order flow (PFOF) data, which showed the discount trading service growing nicely from its Q3 results. Robinhood’s PFOF revenue growth had slowed in sequential terms in the third quarter of 2020, but the final quarter iced near-term concerns that the unicorn’s growth days were behind it.

But then the company gave us a little more, a few charts that I think better explain why Robinhood was able to raise so much money so quickly.

Equities and options volumes go up

The reason why Robinhood was able to raise lots more cash very quickly was because the company’s PFOF revenue driver likely went into overdrive during the mess that was the GameStop period, This is somewhat obvious, as many people were trading.

But thanks to a new chart from the company posted on its own blog, we now know that Robinhood’s PFOF incomes were likely spiking to all-time highs.

Here’s the chart the company published, which I have loosely marked with quarterly intervals. Per Robinhood, the green line is “Robinhood equities and options trading volumes over a longer time horizon, through last week:”

News: Tickr, which allows retail investors to back Impact companies, secures $3.4M from Ada Ventures

Tickr, an app that allows UK consumers to make financial investments based on their impact on society and the environment, has secured £2.5m ($3.4m) in funding lead by Ada Ventures, a VC which focuses on ‘impact’ startups. The cash will be used for product development, expanding the user base, and eventually taking Tickr into other

Tickr, an app that allows UK consumers to make financial investments based on their impact on society and the environment, has secured £2.5m ($3.4m) in funding lead by Ada Ventures, a VC which focuses on ‘impact’ startups. The cash will be used for product development, expanding the user base, and eventually taking Tickr into other European countries from its current UK base.

As well as investing, the platform allows customers to spend their cash via partnerships with impact-oriented compares, and offset their carbon footprint through a subscription. The core business model is £1 p/m per customer, plus 0.30% on assets above £3,000. Additional products, like carbon offsets, for example, are charged as a separate additional subscription depending on the tier selected.

The startup says it is approaching 100,000 users in the UK and is reaching a millennial audience 90% of which have ‘never invested before’ (they say) and these users are investing £250 per month on average.

Tickr App

Tickr App

The app is not billed as a trading app, with quick ‘in and outs’ but about building wealth whilst investing in a diversified portfolio of high impact companies. Its competitors include MoneyBox, but Tickr says it is “100% pure impact focus” by contrast. The vast majority of Europeans don’t invest in markets so this could be a good opportunity for the product.

Founders Tom McGillycuddy and Matt Latham spent 8 years working in investment management but say they became disillusioned by the jargon, high fees and indifference to causes such as the environment.

Over text interview, McGillycuddy told me: “We also realized there was zero consideration for the underlying impact of the investments people were making; it was purely about the return. Coming from Wigan and Liverpool, we were the first people in our families to be exposed to this world, and it didn’t seem right.” The pair moved into impact investing and subsequently went on to launch Tickr in 2018.

News: India is restoring 4G internet in Jammu and Kashmir after 18 months

India is restoring 4G internet services in Jammu and Kashmir, 18 months after enforcing restrictions in the Muslim-majority state in an attempt to curb the spread of potential backlash over its decision to strip the region of its special status in August of 2019. Rohit Kansal, principal secretary of the Jammu and Kashmir government, said

India is restoring 4G internet services in Jammu and Kashmir, 18 months after enforcing restrictions in the Muslim-majority state in an attempt to curb the spread of potential backlash over its decision to strip the region of its special status in August of 2019.

Rohit Kansal, principal secretary of the Jammu and Kashmir government, said Friday evening that 4G internet services were being restored in the entire region. India lifted ban on internet and some social media services in two districts (of 20) of the state last year but maintained speed restrictions and time limits, after Supreme Court ruled last year that an indefinite shutdown of the internet in the state was unwarranted and demonstrated “abuse of power” by the Prime Minister Narendra Modi-led government.

The internet ban in Jammu and Kashmir was by far the longest by any democracy.

Raman Chima, a senior international counsel and Asia Pacific Policy director at Access Now, a nonprofit internet advocacy organization, said today’s move was welcoming, but “let’s be clear — the previous shutdown was excessive, mindless repeated. Glad that all Jammu and Kashmir residents will soon have internet restored, denied to them in violation of their rights under the Indian Constitution.

This is a developing story. More to follow…

News: Dublin’s Frontline Ventures raises new $83.8M seed fund for European B2B startups

Dublin-based Frontline Ventures has released details of its new €70 million ($83.8M) Frontline Seed fund III which will be aimed at European B2B startups. The new fund will bring Frontline’s total funds under management to €250 million, deployed out of its offices in London, Dublin and San Francisco. Backers of the fund include the European

Dublin-based Frontline Ventures has released details of its new €70 million ($83.8M) Frontline Seed fund III which will be aimed at European B2B startups. The new fund will bring Frontline’s total funds under management to €250 million, deployed out of its offices in London, Dublin and San Francisco. Backers of the fund include the European Investment Fund (EIF), Ireland Strategic Investment Fund (ISIF) and Irish banking giant AIB, along with 10 tech angels, largely post-exit entrepreneurs, from Europe and the US.

The new fund has already begun to invest in early-stage companies, and is aiming at investing in up to 45 companies over the next four years. Investments will range from €250,000 to €2.5 million. It follows Frontline’s recent new $70m US-based growth-stage fund, Frontline X, which is geared to US startups wanting to expand to Europe and the EU region, given that Ireland is an EU member, and well placed to benefit from the ramifications of Brexit.

William McQuillan, Partner, said the fund would invest about 50 percent of the fund into new early-stage companies. The remaining funds will be delayed for later investments in existing portfolio companies.

It’s McQuillan’s view that, with Europe having 26 percent of all the global B2B software market and the US at 50 to 55 percent, Europe has plenty of growth opportunities.

The new seed fund launches at a time when US VC firms are putting down roots in Europe, such as Sequoia which opened an office in London last year, and more recently General Catalyst. In May of 2020, Frontline invested in Irish HQ’d company Evervault alongside Kleiner Perkins, Index and Sequoia. 

Seventy percent of Frontline’s seed portfolio companies have raised capital from US VCs since 2012, and Frontline partners have experience with companies such as Google, Twitter, SurveyMonkey, Airtable, and Yammer.

In a statement, McQuillan said, “When we looked at the data back in 2012 – at the very start of Frontline – it was painfully clear that European entrepreneurs lacked the infrastructure and support to build a global business out of Europe. Today, Europe rightfully finds itself on top-tier US investors’ target list, but global expansion remains an important challenge to solve. As a team, we’ve pooled all of our experience and resources into helping our founders cross the Atlantic. Seed Fund III will be an extension of our work – to help founders get off the ground – and go global.”

Frontline’s more notable investments include Linked Finance, Clearbanc, and Currencyfair. The Frontline X growth fund has invested in the Series B of TripActions; People.ai’s $100 million Series C; and Clearbanc’s $50 million Series B.

Notable exits include Logentries, which was acquired by Rapid7; Orchestrate, acquired by CenturyLink; and Pointy acquired by Google in 2020.

News: YC-backed Djamo is building a financial super app for consumers in Francophone Africa

Djamo, a financial super app for consumers in Francophone Africa, is the first startup from Ivory Coast to get backing from Y Combinator. While there has been a huge profusion of financial services that have emerged in recent years in Africa, Djamo’s mission is to try to plug one specific and a very underserved gap

Djamo, a financial super app for consumers in Francophone Africa, is the first startup from Ivory Coast to get backing from Y Combinator.

While there has been a huge profusion of financial services that have emerged in recent years in Africa, Djamo’s mission is to try to plug one specific and a very underserved gap in Francophone Africa.

In the region, less than 25% of adults have bank accounts as the focus for banks remains the top 10-20% wealthiest customers. The rest, which is a huge segment of the market of about 100 million people, is not perceived as profitable. But as banks slacked, mobile money from the region’s telcos filled in the gap. In the last 10 years, their wallets have reached more than 60% of the population — proof of how many millions of French-speaking natives were hungry for financial services. Today, this mobile money infrastructure and reach allows startups to build upon their existing payment infrastructure to democratize access through different applications.

Djamo is one of such companies taking advantage of this opportunity to bring affordable and seamless banking to the region.

In 2019, Hassan Bourgi, a second-time founder, returned to Ivory Coast after exiting his Latin American-based startup, Busportal, to Naspers-company redBus. There he met Régis Bamba who was still working at MTN, one of Africa’s largest telcos, leading several mobile money projects.

Frustrated by the unpleasant banking experiences they and many millennials faced in the country, Bourgi and Bamba launched Djamo last year to challenge the banking industry status quo. 

“Banking services are really difficult to access here, and we saw that as a huge opportunity,”  Djamo CEO Bourgi said to TechCrunch. “Since day one, we wanted to design a mobile-first platform that could break into the masses and our combined experience building mass-market consumer products was very critical to launching Djamo.”

According to Bourgi, the country’s millennials are trying to create relations with technology companies and be served differently from the norm. So, Djamo is providing this audience with a better front end experience and faster customer service.

Image Credits: Djamo

Rather than offering a one-size-fits-all approach, they focused on accommodating multiple layers tailored to different user needs. Whether it’s affording Ivorians the luxury to pay for online services like Amazon, Alibaba, or Netflix, or providing VISA debit cards in a timely fashion, these tailored approaches have made Djamo grow organically via word of mouth.

And why not? Before Djamo came along, the CEO says people would need to go to their bank branches and stay in long queues to get their cards or even load them with credit. Djamo relieves that stress and even allows customers to use their cards with zero fees in a wide range of services.

“For us, it was important to offer a zero-fee card with no recurring fee to a certain limit. After that, you pay as you go in transaction fees. There is a premium plan around $4 a month where users can transact to higher limits,” said Bourgi.

Today, Djamo claims to have around 90,000 registered users and processes over 50,000 transactions monthly. However, to get to this point, the company has ridden on sheer resourcefulness around its operations.  

Unlike Nigeria, where there are established payment infrastructure players like Flutterwave and Paystack, Ivory Coast doesn’t have such household names.

 “We have a couple of providers, but most are unreliable. But this doesn’t matter to the end-user, you have to make it work somehow,” said Bambi, the company’s CPO and CTO.

Lacking better options, Djamo switches from one provider to another to keep operations running. The year-old startup has also faced scepticism issues, common with most African fintech startups when they first launch. In Djamo’s case though, the founders had to go at lengths to prove to banks and customers that the platform was safe to use for onboarding, KYC and transactions.

Hassan Bourgi (CEO) and Régis Bamba (CTO & CPO)

Onboarding customers also came with its own set of problems: the delivery of Djamo VISA cards. Bourgi says unlike more developed countries on the continent, it is a Herculean task to access efficient delivery and logistics services in Ivory Coast. So, the startup built a delivery app with in-house delivery agents for this particular purpose. “The objective for our customers is that after registering with us, they get their cards the next day in a timely fashion,” Bourgi added.

But even before pushing out its MVP, Djamo had already received monetary validation for its product. In June 2019, it raised a pre-seed investment of $350,000 from private investors — arguably the largest round at this stage in the Francophone region. The ingenuity of the solution, at least to French-speaking Africa, and the founders’ track record was crucial to Djamo closing the round, Hassan explained.

For a long time, Francophone Africa has been underrated by international investors despite signs pointing to the emergence of a budding startup scene. Part of this has to do with language barriers and the region’s GDP and income per capita where English-speaking countries, excluding South Africa, contribute to 47% of sub-Saharan Africa’s average GDP, while French-speaking countries boast of only 19%.

However, with the World Bank stating that the region will have 62.5% of Africa’s fastest-growing economies by 2021, there’s bullishness around its growth in the coming years. 

With so many untapped opportunities, underrepresented regions like Francophone Africa are ripe for disruption. Investors know this and though their checks are still skewed towards Anglophone Africa, million-dollar raises from Senegalese energy startup, Oolu and Cameroonian healthtech startup, Healthlane in 2020 show their keenness on the market.

Like Djamo, both startups are YC-backed and are the other Francophone startups to have made it into the accelerator. But with this Winter 2021 batch, Djamo becomes the first fintech startup from the region. Following Healthlane’s acceptance in 2020, it is also the first time French-speaking Africa has had representatives for consecutive years.

To the founders, YC’s backing validates Djamo’s premise that financial service distribution across the Francophone Africa region is fundamentally changing towards applications.

“In Ivory Coast, people always say that the banking industry is too complex and we can’t do anything about it. But we saw it as a huge opportunity and a great industry to take on. Everywhere you see frustration, customers in pain, there is an opportunity for a business to come and do it better,” said Régis.

After participating in the three-month-long program which culminates in a Demo Day on March 23rd, Djamo will also take part in Visa’s Fintech Fast Track Program, an avenue for the company to leverage the fintech giant’s network to introduce new payment experiences.

News: Twinco Capital scores €3M for its supply chain finance solution

Twinco Capital, a Madrid and Amsterdam-based startup making it easier to access supply chain finance, has raised €3 million in funding. Leading the round is Spanish VC fund Mundi Ventures, with participation from previous backer Finch Capital and several unnamed angels. Twinco Capital also has a debt facility with the Spanish investment bank EBN Banco

Twinco Capital, a Madrid and Amsterdam-based startup making it easier to access supply chain finance, has raised €3 million in funding.

Leading the round is Spanish VC fund Mundi Ventures, with participation from previous backer Finch Capital and several unnamed angels. Twinco Capital also has a debt facility with the Spanish investment bank EBN Banco de Negocios, which is common for any type of lending company.

Founded in 2016 by Sandra Nolasco and Carmen Marin Romano, Twinco Capital offers a supply chain finance solution that includes purchase order funding. To do this, it integrates with large corporates on the purchase side and then funds suppliers by paying up to 60% of the purchase order value upfront and the remainder immediately upon delivery.

The entire process is digital, promising a quick decision and fast deployment of funds, and is powered by Twinco’s supply chain analytics and the data it is able to access by partnering with both sides of the supply chain.

“The financing of global supply chains is expensive and inefficient, the burden of the cost is mostly borne by the suppliers and in particular by those that are SMEs in emerging markets,” explains Twinco Capital co-founder and CEO Sandra Nolasco.

“Take any global supply chain, such as apparel, automotive, electronics etc. Exporters in countries like Bangladesh, China or Vietnam that have been supplying European companies for years, with stable commercial relationships. However, their creditworthiness is still measured only on the basis of annual financials, making access to competitive liquidity a major obstacle for growth”.

By having visibility on both sides, including upcoming orders, Twinco provides liquidity to the suppliers “from purchase order to final invoice payment”.

“We do that by analyzing supply chain data – the performance of the suppliers, the network effects between common suppliers and buyers (and many more data points I am not allowed to mention!),” says the Twinco CEO. “In short, using advanced data analytics we can better assess, price and significantly mitigate risk. The good news is that the more transactions we fund, the more suppliers and buyers we add, the more robust is our risk assessment. We believe there is a strong network effect”.

To that end, Twinco makes money by charging a “discount fee” for each purchase order it funds. “Since default rates are a fraction of that fee, we can unlock significant value,” says Nolasco.

Meanwhile, the fintech is also unlocking an asset class for investors and competes with local banks that are much more manual and don’t benefit from increased visibility via network effects. Nolasco says that to ensure interests are aligned, the company uses a portion of equity to also invest in the purchase orders it funds.

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