Daily Archives: March 23, 2021

News: OnePlus 9 arrives, sporting a Hasselblad-branded camera system

Cameras have long been the battleground on which the smartphone wars have been fought. Short of any left-field innovation like folding screens or strange form factors, that looks likely to continue to be the case for the foreseeable future. Year after year and generation after generation, companies tout imaging breakthroughs to set themselves apart. It

Cameras have long been the battleground on which the smartphone wars have been fought. Short of any left-field innovation like folding screens or strange form factors, that looks likely to continue to be the case for the foreseeable future. Year after year and generation after generation, companies tout imaging breakthroughs to set themselves apart.

It makes sense. Smartphones have improved to a point where flagship devices are, as a rule, pretty good. And while cameras have been a part of those improvements, there’s still a lot of room for improvement, both in terms of hardware and the software/AI that augments it. Recently, OnePlus announced that it would be recruiting a big name to help it in that fight.

Earlier this month, the Chinese smartphone maker unveiled a three-year deal with Hasselblad, one of the most iconic names in the photography space. Announced at an event today, the company’s new OnePlus 9 series will be the first handset to sport the early fruits of the $150 million deal.

The deal makes sense from a strategic standpoint. After all, OnePlus’s transformation from a high-end budget device to flagship competitor has put companies like Apple and Samsung in its sights. Both of those companies have established and long-standing imaging departments for their hardware, so in addition to a clear branding partnership, this does seem to be an earnest attempt to level the playing field.

Image Credits: Brian Heater

It’s worth noting, up top, that the days of being the budget alternative are, to a degree, gone. The OnePlus 9 starts at $729 and the Pro starts at $969. As smartphone pricing goes, that’s toward the lower-end of premium devices, but after the introduction of the Nord, it seems safe to say that budget will no longer be a primary differentiator for OnePlus’s primary line.

Naturally, the OnePlus 9 Pro gets the most benefit from these early stages of the Hasselblad deal. The primary camera sports a 48-megapixel Sony sensor, coupled with improved focus speeds and increased color accuracy. The ultrawide camera has a 50-megapixel sensor (also Sony), with a lens designed to reduce distortion. Interestingly, the company says it’s also effective for shooting close macro shots with distances as close as 4cm.

The third primary camera is an eight-megapixel telephoto capable of up to 30x digital zoom (though you’re going to lose a fair bit of information). There’s a fourth monochrome camera, as well, which primarily serves to help improve black and white shots. The standard OnePlus 9 has a similar setup, though you’ll drop that telephoto lens.

Here’s OnePlus on what Hasselblad is bringing to the table this time out:

The new Hasselblad Pro Mode offers incredibly accurate and natural color for a solid foundation for post-editing. It has been revamped with a new user interface based on Hasselblad’s image processing software to give professional-level users a unique Hasselblad look and feel. It also allows for an unprecedented amount of control for expert photographers to fine-tune their photos, with the ability to adjust ISO, focus, exposure time, white balance and more. Users can also shoot in 12- bit RAW format for 64-times the color compared with 10-bit RAW traditionally found in other smartphones.

Image Credits: Brian Heater

Keep in mind, the partnership is still in its early stages, and much of the money is going toward R&D, so we’ll probably be seeing more integration down the road.

The display is the same as the one found in the OnePlus 8T. That’s a 6.55-inch AMOLED with a 120Hz refresh rate. Brightness maxes out at 1,100 nits, and the screen sports HDR10+ certification. There’s a Snapdragon 888 inside, coupled with 8 or 12GB of RAM and 128 or 256GB of storage. Both models feature a solid 4,500 mAh battery that goes from empty to 100% charge in 29 minutes.

Pre-orders start March 26. The handsets will ship April 2.

News: Startups book an expo booth at TC Sessions: Mobility 2021 to double down on connection and exposure

When it comes to fast-moving technology, mobility zooms ahead of the pack — both literally and figuratively. Early-stage startup founders and investors need to keep their fingers on the sector’s very rapid pulse and the best place to do that is, you guessed it, TC Sessions: Mobility 2021 on June 9. If you’re eager to

When it comes to fast-moving technology, mobility zooms ahead of the pack — both literally and figuratively. Early-stage startup founders and investors need to keep their fingers on the sector’s very rapid pulse and the best place to do that is, you guessed it, TC Sessions: Mobility 2021 on June 9.

If you’re eager to introduce your early-stage startup to the top leaders, investors, experts and policy makers across the mobility tech community, don’t just attend TC Sessions: Mobility — exhibit there. Double down on essential exposure and increase your opportunities.

Budget-friendly tip: The early-bird price remains active until May 5 at 11:59 pm (PST). Buy your Startup Exhibitor Package before the deadline hits and save 35 percent.

Talk about a rapt audience. One big reason people attend the show is to see and meet exciting, innovative new startups. A Startup Exhibitor Package lets you showcase your tech, build your network and expand your opportunities for growth and success. Here’s what your package includes (Note: They’re available only to pre-Series A, early-stage startups).

  • Virtual booth space: Display your pitch deck, host a video display and demo your products.
  • Lead generation: Track booth visitors for easy post-show follow-up.
  • Event passes: The package price includes four passes to TC Sessions: Mobility. Bring your team and increase your networking opportunities.
  • Full event access: You can tune in to all presentations on every stage.
  • Video on-demand: No FOMO for you. You’ll have VOD access to all presentations after the show ends.
  • Breakout sessions: Don’t miss these presentations, each with a special focus.
  • Networking: Whether you connect on the fly using the virtual platform’s chat feature or find specific people and schedule meetings using CrunchMatch, our AI-powered networking platform, you’ll make connections to drive your mobile business forward.

Keeping with the networking theme, this is how Karin Maake, senior director of communications at FlashParking, described her experience.

“TC Sessions: Mobility isn’t just an educational opportunity, it’s a real networking opportunity. Everyone was passionate and open to creating pilot programs or other partnerships. That was the most exciting part. And now — thanks to a conference connection — we’re talking with Goodyear’s Innovation Lab.”

Don’t miss your chance to sashay your superior stuff in front of the mobility industry’s leading mover, shakers and makers. Buy a Startup Exhibitor Package now, save 35 percent and get ready for TC Sessions Mobility 2021.

Is your company interested in sponsoring or exhibiting at TC Sessions: Mobility 2021? Contact our sponsorship sales team by filling out this form.

News: Discord’s $10B exit; Compass and Intermedia Cloud Communications set IPO price ranges

There’s a lot of news this morning, so let’s discuss all the big dollars before YC demo day kicks off.

It’s demo day for the current Y Combinator class, so we’ll have a largely early-stage focus at TechCrunch today. But there’s also a host of late- and super-late-stage news this morning that matters.

Let’s get to all of it before we start to talk accelerators, overheated pre-seed valuations and the like.


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


There are three things to discuss. First, the possible $10 billion exit of Discord to Microsoft. Discord is a well-financed unicorn that has raised oodles of capital and reportedly sports rapidly expanding revenues. Our goal will be to vet whether the price tag in question makes any sense, or if it is too low.

Second: Real estate-tech company Compass has set an IPO price range we need to explore. Is its resulting valuation strong? Does it line up with its recent financial performance?

And, third, Intermedia Cloud Communications has priced its IPO. We’re behind on this entire debut, so we’ll take a second to riff on what the company does and what it is worth.

It’s a lot. But if we don’t get through it all now, we’ll fall behind and feel silly later. Let’s get to work!

Discord and Microsoft

Microsoft might be getting good at community, which is an odd thing to say about the enterprise software and cloud computing giant. The company’s Xbox gaming ecosystem has survived the test of time, Github is doing fine under Microsoft’s auspices, and Minecraft seems unharmed by Redmond’s stewardship.

That means gamers, developers and kids are all content to hang with Satya Nadella and company. Adding Discord to the mix might give Microsoft even more tooling to augment its existing communities, or perhaps tie them more closely together. But that’s all product news, which isn’t our remit. Let’s talk numbers.

The New York Times reported that Discord has “held deal talks with Microsoft for a transaction that could top $10 billion.” That figure has been widely reported, so we’ll use it for our work.

With a possible valuation in hand, we need revenue numbers to figure out if the possible sale price makes any sense. Happily, we have somewhat fresh numbers: The Wall Street Journal reported earlier this month that “generated $130 million in revenue [in 2020], up from nearly $45 million in 2019.”

News: OneTrust adds ethics to its privacy platform with Convercent acquisition

OneTrust, a late stage privacy platform startup, announced it was adding ethics and compliance to the mix this morning by acquiring Convercent, a company that was built to help build more ethical organizations. The companies did not share the purchase price. OneTrust just raised $300 million on a fat $5.1 billion valuation at the end

OneTrust, a late stage privacy platform startup, announced it was adding ethics and compliance to the mix this morning by acquiring Convercent, a company that was built to help build more ethical organizations. The companies did not share the purchase price.

OneTrust just raised $300 million on a fat $5.1 billion valuation at the end of last year, and it’s putting that money to work with this acquisition. Alan Dabbiere, co-chairman at OneTrust sees this acquisition as a way to add a missing component to his company’s growing platform of services.

“OneTrust instantly brings a proven ethics and compliance technology, team, and customer base into the OneTrust, further aligning the Chief Ethics & Compliance Officer strategy alongside privacy, data governance, third-party risk, GRC (governance, risk and compliance), and ESG (environmental, social and governance) to build trust as a competitive advantage,” he said.

Convercent brings 750 customers and 150 employees to the OneTrust team along with its ethics system, which includes a way for employees to report ethical violations to the company and a tool for managing disclosures.

Convercent can also use data to help surface bad behavior before it’s been reported. As CEO Patrick Quinlan explained in a 2018 TechCrunch article:

“Sometimes you have this interactive code of conduct, where there’s a new vice president in a region and suddenly page views on the sexual harassment section of the Code of Conduct have increased 200% in the 90 days after he started. That’s easy, right? There’s a reason that’s happening, and our system will actually tell you what’s happening.”

Quinlan wrote in a company blog post announcing the deal that joining forces with OneTrust will give it the resources to expand its vision.

“As a part of OneTrust, we’ll be combining forces with the leader across privacy, security, data governance, third-party risk, GRC, ESG—and now—ethics and compliance. Our customers will now be able to build centralized programs across these workstreams to make trust a competitive differentiator,” Quinlan wrote.

Convercent was founded in 2012 and has raised over $100 million, according to Pitchbook data. OneTrust was founded in 2016. It has over 8000 customers and 150 employees and has raised $710 million, according to the company.

News: Apple launches the ‘Apple Teacher Portfolio recognition, updates Schoolwork and Classroom apps

Apple this morning announced a handful of education-related updates to its suite of classroom apps as well as a new recognition for teachers, called the Apple Teacher Portfolio. Teachers who complete a total of nine lessons where they learn foundational skills on iPad and Mac to become an officially recognized Apple Teacher will be able

Apple this morning announced a handful of education-related updates to its suite of classroom apps as well as a new recognition for teachers, called the Apple Teacher Portfolio. Teachers who complete a total of nine lessons where they learn foundational skills on iPad and Mac to become an officially recognized Apple Teacher will be able to submit their portfolio of lesson examples to earn the Apple Teacher Portfolio recognition. They can then also share their portfolio with their colleagues or use it to showcase their work.

Teachers can work towards acquiring the badge through the Apple Teacher Learning Center, which is Apple’s self-paced learning platform for educators. This offering is designed to help teachers learn how to incorporate Apple technologies in the classroom, including by using iPad and Mac apps for creating art, videos, animations, recordings, page layouts, podcasts, data trackers, music, and more. Across the lessons, Apple provides templates as examples which teachers can customize or combine to make their own projects that use either an iPad or Mac and Apple software like Keynote, GarageBand, iMovie, and others.

Image Credits: Apple

In addition, Apple today rolled out updates across its Schoolwork and Classroom apps, as well as its “Everyone Can Create” curriculum, which has historically focused on taking advantage of Apple’s creative tools like iMovie, Clips and GarageBand.

In Schoolwork, teachers will gain the option to share Schoolwork projects with colleagues by exporting their assignments, which can then be imported back into Schoolwork or other platforms. Other improvements have been made to the sidebar navigation to make it quicker to access classes, assignments and student accounts.

Classroom, meanwhile, has been updated for remote learning — a feature that would have been more useful to have rolled out in 2020, amid the height of U.S. lockdowns during the pandemic. With the update, teachers will be able to invite remote students to Classroom sessions where they’ll be able to guide them to apps, view their screen (with the student’s permission) and track their engagement. The software has also been rebuilt using Mac Catalyst, making it work across iPad and Mac, including Macs powered by Apple’s M1 chips.

The Everyone Can Create” curriculum has had a number of smaller updates. Its Drawing guide has been updated to include motion graphics and animation in Keynote, while Photos now covers the creation of animated GIFs using Keynote, and the Camera and Photos apps. The Video guide will now explore creating short films using a green screen and other special effects, and Music adds new podcasting features using GarageBand, Apple says. Today, more than 5,000 K-12 institutions worldwide are using the curriculum.

Apple last year had updated its Schoolwork and Classroom apps, with some updates to Schoolwork to support distance learning — like managing assignments over the cloud and support for calling students via FaceTime, for example. But even as the pandemic forced schools towards remote learning, Google jumped ahead of edtech rivals by aggressively giving away its software and courting teachers. Its low-cost Chromebooks were being given out across school districts, doubling demand in 2020. Google Classroom, meanwhile, doubled to more than 100 million active users by April 2020, Bloomberg Quint reported. As of Feb. 2021, Google said the service was being used by over 150 million students, teachers and admins, up from just 40 million last year.

Apple didn’t say today how many users it has for its own educational software programs, by comparison. However, by encouraging teachers to create a portfolio which they can then share, Apple is helping to push towards greater adoption of its tools by more directly involving educators in the process.

Apple Teacher Portfolio launched today and is available in the Apple Teacher Learning Center. The “Everyone Can Create guides” are a free download on Apple Books. And new versions of both Schoolwork and Classroom are available in beta now through AppleSeed for IT.

News: After its near-death experience, AR pioneer Blippar is back with $5M in funding and a B2B model

Augmented Reality pioneer Blippar – which has had a tortuous history after early investors pulled out and the company had to scramble for new backers – has now closed a $5 million funding round, after 18 months of re-positioning as a B2B company in the AR space. The pre-Series A round was co-led by Chroma

Augmented Reality pioneer Blippar – which has had a tortuous history after early investors pulled out and the company had to scramble for new backers – has now closed a $5 million funding round, after 18 months of re-positioning as a B2B company in the AR space.

The pre-Series A round was co-led by Chroma Ventures and West Coast Capital. Canadian entrepreneur Anthony Lacavera also participated via his Globalive Capital investment firm. Chroma is the investment arm of Paddy Burns’ and Chris van der Kuyl’s gaming company 4J Studios, while West Coast is the private equity arm of Scottish entrepreneur Sir Tom Hunter and family.

The new investors join existing shareholder Candy Ventures; the multi-stage investment firm founded by British property entrepreneur Nick Candy, who came to Blippar’s rescue. This new entity acquired the company’s assets in a patent sale and managed to keep on sounder Ambarish Mitra, although he is now acting as the company’s “Chief Creative Officer”. At hits height, Blippar burned through $130 million in funding, claiming a $1.5 billion valuation, and tried to crack the consumer AR market. But Blippbuilder, its SaaS AR creation platform, is the asset that is now seeing it make a B2B comeback.

At its height Blippar employed 340 people, Now it’s 30 people. But it has all the IP and assets from its previous incarnation, and is now ‘making hay while the sun shines’.

AR technology is now being used in several areas such as live events (when they return!) retail, FMCG, automotive, healthcare and education.

Rumoured AR glasses from Apple and the inclusion of AR results in mobile search results may well help its adoption, as well as the continuing need for social distancing.

While the tech giants are developing AR tools, these are platform-dependent, whereas Blippar hopes to be the agnostic alternative.

Its two routes to market are, firstly, via its Blippbuilder SAAS platform, which enables agencies, brands and AR content creators to create communications and campaigns. It also does bespoke work with an in-house team “Studio B”.

Faisal Galaria, CEO of Blippar, commented: “We are very excited to have attracted investors of this caliber to Blippar… 2020 was a transformative year for Blippar with a 200% increase in revenue quarter on quarter, continued strengthening of the senior leadership team, and delivery of cutting-edge AR campaigns for major global brands including OnePlus, Kellogg’s and Dr Pepper. We have leveraged our 10 years of investment, provenance, and technology leadership in the AR space to come back leaner, more focussed and better than ever before.”

Burns and Van der Kuyl are best known for porting Minecraft to the Microsoft, Sony and Nintendo games consoles. The latter said in a statement: “The immersive nature of AR makes it one of the most important use cases for the gaming industry. Blippar’s AR technology is by far the most advanced and innovative that I’ve seen in years and there is huge potential for AR to power the ultimate gaming experience of the future. We look forward to being part of the Blippar journey.”

Hunter commented: “Blippar has demonstrated strong progress with the turnaround plan put in place by Faisal and the team, and the business is now well placed to maximize the opportunities presented by the growing AR ecosystem hence we are delighted to invest.”

In addition, Justin Cooke, Venture Partner at tech investor Northzone, has also been appointed to the Blippar Board this month. The UK Government also has a minority equity stake in Blippar via its Future Fund match funding scheme< which was design to assist struggling tech companies through the pandemic.

Blippar re-enters a market which includes Niantic, Unreal, Unity, 8th Wall, Zappar and Magic Leap. But as AR matures, it may be back in the right place.

Here’s an example of how brands are using the platform:

News: Arcadia steps in to Texas’ startup energy market with the acquisition of Real Simple Energy

On the third greatest television show of all time (sorry Rolling Stone), one of Texas’ most famous fictional football players once said, “When all the scared rats are leaving a sinking market, that’s when a real entrepreneur steps in — a true visionary.” If that’s the case, then the startup renewable energy retail reseller Arcadia

On the third greatest television show of all time (sorry Rolling Stone), one of Texas’ most famous fictional football players once said, “When all the scared rats are leaving a sinking market, that’s when a real entrepreneur steps in — a true visionary.”

If that’s the case, then the startup renewable energy retail reseller Arcadia may be a true visionary. Even as energy startups servicing customers throughout the great state of Texas are forced to throw in the towel, the Washington-based, consumer-focused renewable energy power provider (based on renewable energy certificates purchased on the open market), is making an acquisition to enter the Texas market.

The company is buying Real Simple Energy, which not only marks the company’s availability in all 50 states, but gives Real Simple Energy customers access to both wind and solar power generating projects. The company said it  will leverage Real Simple Energy’s platform and expertise to secure the best rates for members, monitor for better savings, and provide a smarter yet simpler energy experience.

“Recent events in the Texas market prove that customers shouldn’t be exposed to wholesale or variable rates, and want an energy advocate to protect them,” said Kiran Bhatraju, CEO and Founder of Arcadia. “Both Arcadia and Real Simple Energy recognize the challenges Texas homeowners and renters have historically faced in the energy buying process, and we remain committed to removing these confusing barriers.”

Texans have consistently paid more for power than consumers that buy their energy from regulated market participants thanks to the state’s disastrously deregulated power markets. The combined companies are pitching fixed rate contracts to Texas consumers that won’t be vulnerable to bill spikes, but will offer average savings above the flat rates regulated utilities offer.

“The deregulated energy industry, especially in Texas, has underserved customers and as a result, most customers overpay for electricity and receive poor customer service. Using technology, we are helping customers realize the promise of deregulation and always get the best fixed rates available,” said Trent Crow, CEO of Real Simple Energy, in a statement. “As industry veterans, joining forces with Arcadia will allow us to get better deals for customers and enhance our customer experience.  We manage 100% of the energy experience and become a customer’s independent agent and advocate so they never have to worry about their electricity bill again.”

The deal is Arcadia’s first acquisition and follows the company’s launch of a community solar program all the way across the country in the great state of Maine.

News: Huckleberry, offering insurance to SMBs, partners with Berkshire Hathaway

Huckleberry, an insurtech company that offers a variety of insurance to small businesses, has announced a partnership with Berkshire Hathaway GUARD. This represents the biggest partnership with a carrier for the startup to date. The startup, cofounded by Bryan O’Connell, has made some major moves in the past year. The company launched in 2017 offering

Huckleberry, an insurtech company that offers a variety of insurance to small businesses, has announced a partnership with Berkshire Hathaway GUARD. This represents the biggest partnership with a carrier for the startup to date.

The startup, cofounded by Bryan O’Connell, has made some major moves in the past year. The company launched in 2017 offering workers compensation and general liability insurance to small and medium-sized businesses through an online portal, cutting out a lot of the hassle for these businesses as they seek out the right policy.

In the last year, the SF-based company has nearly doubled its geographic footprint and added five new policies to the product suite, including cyber, automotive insurance, umbrella insurance and more.

Moreover, it’s moving to New York and opening up an office in Columbus, Ohio, called HQ2. O’Connell says that the move to New York is all about positioning the startup in the midst of NYC’s burgeoning pool of fintech talent.

With the new partnership and the company’s growth over the past year, it’s bringing on new team members, with plans to get to 100 people by the beginning of 2022. In particular, it’s brought on Bill Kaper as Chief Technology Officer. Kaper hails from Root Insurance, where he served as VP of Engineering and oversaw a team of 200+ engineers. Huckleberry also snagged Braden Davis, formerly of Jetty, as Chief Insurance Officer.

The company raised $18 million in Series A capital back in December of 2019, with investors that include Tribe Capital, with participation from Amaranthine, Crosslink Capital and Uncork Capital.

The momentum from the new hires and partnership with Berkshire Hathaway will allow Huckleberry to move into higher risk insurance categories.


Early Stage is the premier ‘how-to’ event for startup entrepreneurs and investors. You’ll hear first-hand how some of the most successful founders and VCs build their businesses, raise money and manage their portfolios. We’ll cover every aspect of company-building: Fundraising, recruiting, sales, product market fit, PR, marketing and brand building. Each session also has audience participation built-in – there’s ample time included for audience questions and discussion. Use code “TCARTICLE” at checkout to get 20 percent off tickets right here.

News: User Interviews, the CRM for qualitative user research, raises $10 million Series A

User Interviews, the Entrepreneurs Roundtable Accelerator-backed company that has built a CRM for product developers to get user feedback, has closed on a $10 million Series A round. The financing was led by Teamworthy Ventures, with participation from Las Olas, Accomplice, FJ Labs, ERA, Trestle Partners and ValueStream. The company, cofounded by Basel Fakhoury, was

User Interviews, the Entrepreneurs Roundtable Accelerator-backed company that has built a CRM for product developers to get user feedback, has closed on a $10 million Series A round. The financing was led by Teamworthy Ventures, with participation from Las Olas, Accomplice, FJ Labs, ERA, Trestle Partners and ValueStream.

The company, cofounded by Basel Fakhoury, was created out of failure, in some ways. Originally, the User Interviews team started with a project called Mobile Suites, an amenities logistics platform for hotels. It was a dud, and the team — Basel Fakhoury, Dennis Meng and Bob Saris — decided to do more user research before determining their next product.

In trying to collect that research, they stumbled upon a huge problem. It often takes companies weeks, if not months, to conduct a study around user research. The company decided to build out a platform that would procure subjects for research quickly and effectively, using an algorithm to pair qualified, engaged testers with the client.

The product became Recruit, and ran on an a la carte model. To complement Recruit, the team also launched Research Hub, which is a CRM tool for all the testing methodologies used with actual users. To be clear, User Interviews doesn’t run the surveys or A/B tests themselves, but rather helps companies manage the frequency and data of those tests, not unlike what Salesforce does for sales people.

Recently, User Interviews added a subscription layer to its product, allowing companies to purchase access to the software on an annual basis, rather than on a usage basis. Fakhoury says that this dual-model allows companies to try out the platform before they fully commit.

Image Credits: User Interviews

According to the startup, the company has experienced 140 percent annual growth, which has accelerated during the pandemic. Clients include Amazon, Microsoft, Colgate and Spotify.

User Interviews plans on using the new funding to hire more in the product department, as well as build out integrations with user testing software and their clients own data management systems.

Right now, the team is about 50 people, and is fully remote, with nearly half the workforce being female.

Fakhoury said the biggest challenge for the company is being able to do two things at once.

“We are simultaneously disrupting this legacy industry with Recruit, and we are creating a category with Research Hub,” he said. “Those are somewhat different strategies and missions and making sure that we can do both of those in tandem is one big thing for us.”


Early Stage is the premier ‘how-to’ event for startup entrepreneurs and investors. You’ll hear first-hand how some of the most successful founders and VCs build their businesses, raise money and manage their portfolios. We’ll cover every aspect of company-building: Fundraising, recruiting, sales, product market fit, PR, marketing and brand building. Each session also has audience participation built-in – there’s ample time included for audience questions and discussion. Use code “TCARTICLE” at checkout to get 20 percent off tickets right here.

News: ‘Instant needs’ delivery startup goPuff raises $1.15B at an $8.9B valuation

Last fall, delivery startup goPuff made a big splash by raising $380 million in funding and acquiring West Coast beverage retailer BevMo shortly afterwards. Just a few months later, the Philadelphia-based company is announcing that it has raised another $1.15 billion in funding at an $8.9 billion valuation (compared to $3.9 billion in October). Available in

Last fall, delivery startup goPuff made a big splash by raising $380 million in funding and acquiring West Coast beverage retailer BevMo shortly afterwards. Just a few months later, the Philadelphia-based company is announcing that it has raised another $1.15 billion in funding at an $8.9 billion valuation (compared to $3.9 billion in October).

Available in more than 650 U.S. cities, goPuff delivers a wide variety of products in under 30 minutes while charging a flat $1.95 delivery fee. Rafael Ilishayev and Yakir Gola, who serve as co-CEOs, founded the company in 2013 while they were students at Drexel University. When I first spoke to Gola last fall, he told me that the pair thought, “There has to be a better way to get convenience products delivered.”

The company now says its vertically integrated approach is a key advantage. GoPuff buys products directly from manufacturers, then distributes those products through its 250-plus “micro-fulfillment centers” and a network of independent drivers. Ilishayev said this results in rapid deliveries, strong unit economics, and a model that passes delivery fees directly to drivers.

“It’s important that we’re making our margin on product, not people,” he said.

The company continues to expand its product lineup new Better For You (healthy snacks), Beauty and Baby categories, as well as Curated Mystery Boxes. When I asked how new products fit into the larger goPuff brand and strategy, Ilishayev replied, “People, throughout our whole existence, have tried to put us into an industry: ‘Are you convenience? Are you pharmacy?’ The reality is that we’re neither. We’re in this category of instant needs, and our production innovation solely stems from consumer demand … There’s no category we offer on goPuff that consumers weren’t crying out for.”

GoPuff says that the new funding will allow it to continue expanding throughout the United States, as well as internationally, and to introduce new products. The round comes from D1 Capital Partners, Fidelity Management and Research Company, Baillie Gifford, Eldridge, Reinvent Capital, Luxor Capital and SoftBank Vision Fund 1.

In a statement, D1 founder and Chief Investment Officer Daniel Sundheim said:

goPuff is truly in a league of its own. We believe that the company’s vision and differentiated model drive industry-leading economics and sustainable growth. Since we initially invested in goPuff last fall, we have been consistently impressed by the team’s ability to successfully execute against its growth plans. The company’s potential is tremendous, and we look forward to the unique opportunities that lie ahead.

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