Monthly Archives: May 2021

News: A new book coauthored by Brad Feld invites founders to get their weekly Nietzsche

In all likelihood, you do not currently associate Friedrich Nietzsche, the German philosopher, essayist and cultural critic, with entrepreneurship. Serial entrepreneurs Brad Feld and Dave Jilk — whose friendship dates back to their college days at MIT — think that you should. Indeed, in the foreword of their new book, “The Entrepreneur’s Weekly Nietzsche: A

In all likelihood, you do not currently associate Friedrich Nietzsche, the German philosopher, essayist and cultural critic, with entrepreneurship.

Serial entrepreneurs Brad Feld and Dave Jilk — whose friendship dates back to their college days at MIT — think that you should. Indeed, in the foreword of their new book, “The Entrepreneur’s Weekly Nietzsche: A Book for Disruptors,” another renowned entrepreneur (and former philosophy student), Reid Hoffman, explains how Nietzsche has inspired him to think differently throughout his own career, noting that, like disruptive entrepreneurs, Nietzsche “wanted to destroy the old mindsets that locked people into the past” and that his “fierce allegiance to the new” is as relevant today as it was 150 years ago.

If setting aside precious time to study Nietzsche sounds daunting, don’t worry; Feld and Jilk clearly get it. Their new book tries to make his writings accessible, but they really focus more on their modern-day applicability, arranging their new book into 52 individual chapters — one for each week — that begins with a quote from one of Nietzsche’s works then quickly delves into an oral history from a founder that brings the quote to life.

Yesterday, we asked Feld, who has written books about venture capital and startup communities in the past, about the book. Our exchange has been edited lightly for length.

TC: What was the impetus for this new book?


BF: This has been an on-again, off-again project with Dave, my first business partner, that began in 2013. We were spending the weekend in Keystone with our wives Amy and Maureen, which generally involved a lot of sitting around reading. Dave was reading “On Nietzsche” by Eric Steinhart. He read a quote to me and asked if I thought it sounded like an entrepreneur. Dave remembers me saying, “Hmmm, it sure does.” Then we both went back to our books.

As Dave went deeper into studying Nietzsche, we kept talking about Nietzsche quotes that prompted discussions around aspects of entrepreneurship. I had gone deep into Stoicism and was in love with what Ryan Holiday was doing with his writing. His book “The Obstacle is the Way” had a huge impact on me.

By 2016, we’d started working on the book. When Ryan came out with “The Daily Stoic,” I suggested to Dave that we write a book using this format. After a little more work, we changed the approach a little, focusing on 52 quotes instead of 365, making our interpretation a little longer and adding a narrative from an entrepreneur to many of the quotes.

Nietzsche is an incredibly important and deeply misunderstood philosopher. He’s the bridge between many things that came before him — beyond just philosophy — and many things that have come after him. Rather than state the answer, he provokes and encourages deep thought. In some ways, he’s the perfect philosophical mentor for an entrepreneur since you can apply his quotes in many different ways.

Should this be placed in the business section or philosophy section of a bookstore?

Well, according to Amazon, it’s already showing up in both! Dave and I wrote this to be an entrepreneurship book, as applied philosophy, but our fantasy is that philosophers who appreciate applications will like what we’ve done. We’re not experts on Nietzsche, nor do we pretend to be Nietzsche scholars. However, we have both read a lot of Nietzsche in the (translated) original at this point, and Dave has studied Nietzsche extensively, so we’ve been deliberate in the quotes we’ve chosen and how we interpret them.

Entrepreneurs are often too busy to be introspective, as you acknowledge in the book. How do you persuade them to make the time?


Entrepreneurship is extremely challenging. It can be excruciatingly difficult. The highs are extraordinary. The lows are devastating. They come endlessly, with unexpected frequency.

If you don’t know your “why,” being an entrepreneur is much more difficult than it needs to be. And, no one can tell you your “why” — you have to discover it for yourself. As you grow, experience and age, your “why” will change. You have to build the muscle to continually figure out your “why,” and figure out how it relates to what you are doing.

If you can’t make the time for this, your journey as an entrepreneur will be much harder. When you face failure, it could be catastrophic or permanent rather than episodic. When you find yourself struggling emotionally, you won’t have the tools to figure out what to do to emerge stronger. While you may utter Nietzsche’s famous quote, “What does not kill me makes me stronger,” if you haven’t thought about it, you are echoing a cliché rather than incorporating an important concept into your way of being.

As for when [to find the time], we talk in the book about establishing cycles of “stepping back” from the business. We discuss the notion of a “metastrategy” — what is your strategy for periodically revising your strategy? We also observe that when things are going well you are likely to plateau, making that an important — though counterintuitive — time to think hard.

There are great oral histories throughout this book. How did you choose the storytellers and were they interviewed or did you email them questions, then edit down their responses?


We focused on experiences we were aware of and people we thought might have some connection to the quote. We used our primary network but didn’t try to be exhaustive. Some of the experiences we already knew about or had played a role in; others were new to us.

We emailed them the quote and a short guideline of what we were looking for. In most cases they wrote a nearly finished narrative; in a few cases, they gave us an outline and we filled it in, or we interviewed them and wrote the text ourselves. We wanted these narratives to feel like the entrepreneurs were talking to the reader in their own voices, and telling the stories that occurred to them, rather than making it an extension of the essay.

We especially love the [stories] where the narrative went in a different direction than our preceding essay, as it demonstrates the different ways Nietzsche can provoke thoughts from a simple quote.

News: What Vimeo’s growth, profits and value tell us about the online video market

Despite the company’s putative performance not being very good thus far today, I can’t really find much bad about the company’s valuation and implied multiples.

The spinout of video platform Vimeo from IAC completed today, with the smaller company now trading as an independent entity under the ticker symbol VMEO.

If you missed the news that the internet conglomerate was spinning out the video service, don’t feel bad; it slipped past many radars. But with the company now trading, with our access to its historical results, and with our minds still enthralled by YouTube’s recent financial performance for Alphabet, it’s worth taking a moment to digest the company’s health.

Let’s answer a few questions: How quickly is Vimeo growing, how profitable is its business, and what can its spinout tell us about the larger video market? Recall that Kaltura, another video-powering company, recently put its IPO back into the pipeline after a small delay during what felt like a snap-freeze of the public markets toward the start of the second quarter.

So the Vimeo debut could impact a possible forthcoming unicorn IPO. With that in mind, let’s dig into the numbers.

Growth

From Q1 2020 to Q1 2021, Vimeo’s revenues expanded from $57.0 million to $89.4 million, a gain of around 57%. That’s a solid pace of expansion, but not a surprising one considering how much digital video the world consumed during the COVID-19 pandemic, a fact that could have bolstered the company’s recent performance.

Over the same time frame, Vimeo’s gross profit grew from $38.6 million to $64.5 million, a gain of around 67%. As you can infer from faster-rising gross profit than revenue, Vimeo’s gross margins improved during Q1 2021 compared to the first quarter of 2020, from 68% to 72%.

News: Call it a comeback: Turntable.fm raises $7.5M

Earlier this year, Turntable.fm’s founder Billy Chasen dusted off the old site and resurrected it for the pandemic age. I know I wasn’t the only one feeling a wistful pang of nostalgia for the service during the long, dull days of sheltering in place. And while March 2020 would have been the best time for

Earlier this year, Turntable.fm’s founder Billy Chasen dusted off the old site and resurrected it for the pandemic age. I know I wasn’t the only one feeling a wistful pang of nostalgia for the service during the long, dull days of sheltering in place. And while March 2020 would have been the best time for a relaunch, March 2021 was pretty good, too.

Today Chasen announced that the service has received a nice little slice of VC backing to help the service (which has thus far been invite/password only) take the next step. Andreessen Horowitz led the $7.5 million round a decade after the site’s original launch. Funding had thus far been limited to fans through services like Patreon and Venmo. He notes that he will be turning off the service’s Patreon.

Chasen is staying mum as far as where the funding will go, stating, “And now with the new fundraising, we can continue to innovate and truly explore the cross section of social + music. I have a lot of ideas for the space and I’m excited to start building them.”

Though, a blog post does note that the company is hiring engineers and designers. Understandable, though as someone who’s been enjoying the site these last few months, I’m actually pretty surprised at how fresh the whole thing feels.

The team found a clever loophole around music rights in the form of YouTube videos, but perhaps a future version of the service will involve more direct music licensing or ties to popular apps like Spotify. A mobile app would be nice, if I’m just spitballing here.

Turntable.fm initially shut down back in 2013, stating at the time, “It was a tough decision to make because we love this community so much, but the cost of running a music service has been too expensive and we can’t outpace it with our efforts to monetize it and cut costs.” The service added that it was focusing on a live events platform instead.

Notably, Turntable.fm is not the only Turntable service looking to relaunch in 2021. There’s also Turntable.org (confusingly located at TT.fm), which is seeking fan funding, as well as looking toward a subscription fee. It announced that it had raised $500,000 in March and was aiming for an April launch for a mobile and desktop version. The site currently reads, “We’re building a new version just as much fun as the original.”

The two Turntables are not affiliated.

News: Raising a round? AngelList Venture CEO Avlok Kohli will share insights at TC Early Stage

What’s it like raising a round in 2021? How has it changed over the last few months, as some glimmer of normalcy seems, at least, within reach? What do early-stage founders (and investors!) need to know about the current state of the industry? Few are in a better place to outline this than Avlok Kohli,

What’s it like raising a round in 2021? How has it changed over the last few months, as some glimmer of normalcy seems, at least, within reach? What do early-stage founders (and investors!) need to know about the current state of the industry?

Few are in a better place to outline this than Avlok Kohli, the CEO of AngelList Venture who will let you know at TC Early Stage on July 8-9. With more than $2.2 billion in assets under management and over 5,000 startups funded on the platform, AngelList has data-driven insights that just about no one else could offer. Kohli joined AngelList Venture as CEO in mid-2019, giving him a remarkably unique view of the industry through a particularly wild time.

Kohli also knows what it’s like to be a founder, having been in that seat multiple times. In 2014 he founded Fastbite, a low-cost meal delivery service; in 2015, he sold it to Square. He dove back in with a daily house cleaning service called Fairy in 2017, and sold it to Postmates at the beginning of 2019.

We’re super excited to announce that Avlok Kohli will join us at TC Early Stage on July 8-9 to get us all up to speed on the state of play in early-stage investing.

TC Early Stage is our event series all about startups that are… well, early stage. From raising money to marketing the right way to just getting people to care, we go deep on the topics that matter most to founders.

We’ll kick this session off with a presentation from Kohli on the state of early-stage investing, then we’ll get right into audience Q&A and try to get your most burning questions answered live.

TC Early Stage: Marketing & Fundraising goes down on July 8th and 9th — and because it’s virtual, you can attend right from the comfort of your couch. Or office chair. Or a hammock. We don’t care, just come watch. Get your tickets here!

News: DC Attorney General files antitrust suit against Amazon over third-party seller agreements

Washington DC Attorney General Karl Racine announced a new antitrust suit against Amazon Tuesday, accusing the company of stifling competition by exerting control over third-party sellers. The lawsuit, filed in DC Superior Court, alleges that Amazon fixed prices on its massive online retail platform by blocking third-party sellers from selling their products for less elsewhere.

Washington DC Attorney General Karl Racine announced a new antitrust suit against Amazon Tuesday, accusing the company of stifling competition by exerting control over third-party sellers.

The lawsuit, filed in DC Superior Court, alleges that Amazon fixed prices on its massive online retail platform by blocking third-party sellers from selling their products for less elsewhere. Racine argues that this kind of arrangement means that sellers roll Amazon’s hefty fees into their prices, creating an “artificially high” price floor across the online retail market.

That practice may run afoul of the District of Columbia’s Antitrust Act. The AG’s office argues that the practice allows Amazon to exert monopoly power in online retail.

“Amazon has used its dominant position in the online retail market to win at all costs. It maximizes its profits at the expense of third-party sellers and consumers, while harming competition, stifling innovation, and illegally tilting the playing field in its favor,” Racine said.

“We filed this antitrust lawsuit to put an end to Amazon’s illegal control of prices across the online retail market. We need a fair online marketplace that expands options available to District residents and promotes competition, innovation, and choice.”

The DC AG lawsuit is the latest state-level effort to take tech’s most powerful companies down a notch. Facebook and Google are both facing multi-state lawsuits for alleged anticompetitive behavior, even as federal lawmakers creep toward major antitrust reform.

News: Whatnot raises $50M to let people sell Pokémon cards, Funko Pops, and more via livestream

Whatnot exists with one primary goal in mind: to give people a place to buy and sell collectibles (like Pokémon cards, sports cards, pins, etc) in a safe, authenticated way. The company started out with intentions of being a GOAT/StockX-style resale marketplace, where the products up for sale lived on neat little pages with row

Whatnot exists with one primary goal in mind: to give people a place to buy and sell collectibles (like Pokémon cards, sports cards, pins, etc) in a safe, authenticated way.

The company started out with intentions of being a GOAT/StockX-style resale marketplace, where the products up for sale lived on neat little pages with row after row of static images. As they started experimenting with other formats, they found one that really seemed to catch on: livestream sales. Think QVC or the Home Shopping Network… but instead of hosts in huge studios selling jewelry and patio furniture, it’s users with smartphones selling Charizard cards and Yoda figurines.

Image Credits: Whatnot

I first wrote about Whatnot last year. In the short time since, the company has raised three increasingly large rounds: $4 million in December, $20 million in March, and, as of this morning, another $50 million.

While Whatnot still offers the more standard product pages to give sellers a 24/7 presence on the site, the livestreaming side of things has become the primary driver — by far. Co-founder Grant LaFontaine tells me that livestreaming is currently “95% of the focus”; it’s where most of their sales are happening, and what users seem to care most about.

Another thing users seem to care about? Sports cards. Whatnot opened up the site to sports card sellers in January, and it almost immediately took over as the site’s best selling category. The one category now accounts for “millions of dollars” in sales each month, the company says.

 

The Whatnot team itself is growing quickly as well. When I first spoke to them, it was just a handful of employees; by January of this year, they were up to ten. Today it’s 45 fulltimers. By the end of the year, says Grant, they expect to be nearing one hundred.

While anyone can sell on Whatnot’s marketplace, only users that have been vetted/invited can sell via livestream. This helps to keep fraud low; sellers know that if they try to sneak in fake cards or rip anyone off, their access to livestreaming — and thus their audience — could vanish.

The company tells me that this Series B round was led by Anu Hariharan of Y Combinator Continuity fund, and backed by Andreessen Horowitz, Animal Capital, and a number of angels.

 

News: Qualified raises $51M to help Salesforce users improve their sales and marketing conversations

Salesforce dominates the world of CRM today, but while it’s a popular and well-used tool for organizing contacts and information, it doesn’t have all the answers when it comes to helping salespeople and marketers sell better, especially when meetings are not in person. Today, one of the startups that has emerged to help fill the

Salesforce dominates the world of CRM today, but while it’s a popular and well-used tool for organizing contacts and information, it doesn’t have all the answers when it comes to helping salespeople and marketers sell better, especially when meetings are not in person. Today, one of the startups that has emerged to help fill the gap is announcing a round of growth funding on the back of a huge year for its business.

Qualified — which builds better interactions for B2B sales and marketing teams that already use Salesforce by tapping into extra data sources to develop a better profile of those visiting your website, in aid of improving and personalizing the outreach (hence the name: you’re building “qualified” leads) — has picked up $51 million in funding. The startup will be using the Series B to continue building out its business with more functionality in the platform, and hiring across the board to expand business development and more.

Led by Salesforce Ventures, the funding round also included Norwest Venture Partners and Redpoint Ventures, both previous backers, among others. As with so many rounds at the moment — the venture world is flush with funding at the moment — this one is coming less than a year after Qualified’s last raise. It closed a $12 million Series A in August of last year.

Qualified was co-founded by two Salesforce veterans — ex-Salesforce CMO Kraig Swensrud and ex-SVP of Salesforce.com Sean Whiteley — serial entrepreneurs who you could say have long been hammering away at the challenges of building digital tools for sales and marketing people to do their jobs better online. The pair have founded and sold two other startups filling holes to that end: GetFeedback, acquired by SurveyMonkey; and Kieden, acquired by Salesforce.

The gap that they’re aiming to fill with this latest venture is the fact that when sales and marketing teams want to connect with prospects directly through, say, a phone call, they might have all of that contact’s information at their disposal. But if those teams want to make a more engaged contact when someone is visiting their site — a sign that a person is actually interested and thinking already about engaging with a company — usually the sales and marketing teams are in the dark about who those visitors are.

“We founded Qualified on the premise that a website should be more than a marketing brochure, but not just a sales site,” Swensrud, who is the CEO, said in an interview.

Qualified has built a tool that essentially takes several signals from Salesforce as well as other places to build up some information about the site visitor. It then uses it to give the sales and marketing teams more of a steer so that when they reach out via a screen chat to say “how can I help?” they actually have more information and can target their questions in a better way. A sales or marketing rep might know which pages a person is also visiting, and can then use the conversation that starts with an online chat to progress to a voice or video call, or a meeting.

If a person is already in your Salesforce rolodex, you get more information; but even without that there is some detail provided to be slightly less impersonal. (Example: when I logged into Qualified to look around the site, a chat popped up with a person greeting me “across the pond”… I’m in London.)

Qualified also integrates with a number of other tools that are used to help source data and build its customer profiles, including Slack, Microsoft Teams, 6sense, Demandbase, Marketo, HubSpot, Oracle Eloqua, Clearbit, ZoomInfo and Outreach.

Additional data is part and parcel of the kinds of information that sales and marketing people always need when reaching out to prospective customers, whether it’s via a “virtual” digital channel or in person. However, in the last year — where in-person meetings, team meetings, and working side-by-side with those who can give advice have all disappeared — having extra tools like these arguably have proven indispensable.

“Sales reps would heavily rely on their ‘road warrior’ image,” Swensrud said. “But all that stuff is gone, so as a result every seller is sitting at an office, at home, expecting digital interactions to happen that never existed before.”

And it seems some believe that even outside of Covid-19 enforcing a different way of doing things, the trend for “virtual selling”, as it’s often called, is here to stay: Gartner forecasts that by 2025, some 80% of B2B sales interactions will take place in digital channels. (So long to the expense account lunch, I guess.)

It’s because of the events of 2020, plus those bigger trends, that Qualified has seen revenues in the last year grow some 800% and its net customer revenue retention rate hover at 175%, with funding rounds come in relatively close succession in the wake of that.

There is something interesting to Qualified that reminds me a bit of more targeted ad retargeting, as it were, and in that, you can imagine a lot of other opportunities for how Qualified might expand in scenarios where it would be more useful to know why someone is visiting your site, without outright asking them and bothering them with the question. That could include customer service, or even a version that might sell better to consumers coming to, say, a clothes site after reading something about orange being the new black.

For now, though, it’s focused on the B2B opportunity.

There are a number of tools on the market that are competing with Salesforce as the go-to platform for people to organise and run CRM operations, but Swensrud is bullish for now on the idea of building specifically for the Salesforce ecosystem.

“Our product is being driven by and runs on Salesforce,” he noted, pointing out that it’s through Salesforce that you’re able to go from chatting to a phone call by routing the information to the data you have on file there. “Our roots go very deep.”

The funding round today is a sign that Salesforce is also happy with that close arrangement, which gives it a customization that its competitors lack.

“Qualified represents an entirely new way for B2B companies to engage buyers,” said Bill Patterson, EVP of CRM Applications at Salesforce, in a statement. “When marketing and inbound sales teams use this solution with Sales Cloud… they see a notable impact on pipeline. We are thrilled about our growing partnership with Qualified and their success within the Salesforce ecosystem.”

News: Struum launches its ‘ClassPass for streaming’ service to the public

Struum, the new streaming service from former Disney and Discovery execs, is today officially launching to the public. Unlike traditional on-demand streamers, such as Netflix, the Struum model is more akin to a “ClassPass for streaming,” as its plan is to aggregate content from smaller video services then provide access under its own subscription. Today,

Struum, the new streaming service from former Disney and Discovery execs, is today officially launching to the public. Unlike traditional on-demand streamers, such as Netflix, the Struum model is more akin to a “ClassPass for streaming,” as its plan is to aggregate content from smaller video services then provide access under its own subscription.

Today, the streaming landscape is dominated by larger subscription services, including Netflix, Hulu, Amazon Prime Video, Apple TV+, HBO Max, Disney+, and YouTube, who together have a 75% share of the market, according to Nielsen. But Struum believes there’s a potential for another service powered by the long tail of  the over 250 niche and speciality streamers.

Many of these smaller services offer their own subscriptions, but will never achieve Netflix-size scale because of their more limited catalog and scope. Struum offers them an alternative path to revenue. Each month, Struum customers will pay a $4.99 subscription fee to access the Struum app where they’re then provided with 100 “credits” they can use to sample and consume content — just as ClassPass did with gym classes.

Over time, if the customer continues to use their subscription to routinely access content from one service, they can then opt to become a subscriber to that service from within the Struum app. This part of the business isn’t all that different from Amazon Prime Video Channels or others like it. But the difference is that Struum’s sampling model is what helped the customer discover the niche streamer in the first place.

Struum, meanwhile, generates its own revenue from customers’ subscriptions, which it shares with its content partners. It won’t say what sort of cut it takes, however.

Image Credits: Struum

At launch, there are more than 25 partners available through the Struum app, including Tastemade, Tribeca, Cheddar News, Kocowa, Dekkoo, Magellan TV, History Hit, Gusto, Young Hollywood, Indieflix, Filmbox, Echoboom Sports, Social Club TV, Cinedigm, Magnolia Pictures, Little Dot Studios, Group 9, Stingray and SPI/Filmhub.

Later this summer, the lineup will grow to more than 50 partners, with additions that include BBC SELECT, REVOLT, France Channels, InsightTV, Docubay, FuelTV, The Great Courses Signature Collection, Shout Factory TV, OUTtv, SVTV, CGOOD TV and Alchimie.

In total, Struum’s partners will provide customers with access to tens of movies and TV shows across a range of categories and genres, like classic films, indies, foreign content, cult hits, lifestyle programming, reality, true crime, and more.

Image Credits: Struum

Struum’s app guides users to their interests through a simple interface where it curates content into editorial groupings organized much like the rows of recommendations you’d find in Netflix. This includes the company’s own picks (“Struum Selects”), as well as groupings by genre — like Comedy, Action Thrillers, LGBTQ + Documentaries, Class Movies, Incredible Science, and others. You can also browse by type from categories across the top, to filter by only Movies, TV shows or Shorts.

When you find something you want to watch, you can click a button to stream the content for a certain amount of credits. You can then view that content at any time for the next 30 days and even download it for offline access.

At launch, Struum’s service is available on iOS and web, and supports AirPlay and Chromecast. This summer, it will expand to more platforms, including Android, Apple TV, Android TV, Amazon Fire TV, and Roku.

Image Credits: Struum

The idea for the company comes from founders Lauren DeVillier, the former head of Product for Discovery Ventures; Eugene Liew, former vice president of Product and Technology at Disney+; Paul Pastor, former executive vice president of Strategy, Revenue and Operations at Discovery Networks; and Thomas Wadsworth, the former lead of Advanced Product Development for Walt Disney Imagineering.

The team came together in 2020, just before the Covid-19 pandemic broke out across the U.S., which drove increased demand for streaming content. And though that demand may be here to stay, it remains to be seen whether Struum’s ClassPass-like model makes the best sense for streaming’s long tail.

Despite its unique streaming business model, the service will effectively compete with AVOD (ad-supported video on demand) players in terms of aggregating both older and niche content. AVOD services — like Tubi, Pluto TV, The Roku Channel, IMDb TV, and others — also help users who can’t find anything they want to watch on their preferred paid subscription apps. And they often aid consumers who are in search of a particular movie or show but don’t want to pay for a rental. Struum believes by aggregating content it can encourage these users to pay for yet another subscription.

In other words, Struum will have to convince users to change their existing TV habits in order to find success, and that’s a risky bet.

But Struum believes the fragmentation of the streaming market may actually work in its favor. As consumers get fed up so many different services and content that jumps around as rights owners forge new licensing agreements, Struum could step in as someone’s fourth subscription.

We view ourselves as the ultimate complementary service and a perfect fit for TV and film lovers who are increasingly frustrated by the costs, complexity and effort required to discover and watch what they want,” noted Struum CEO Lauren DeViller.

Struum is backed by a multi-million-dollar investment from former Disney CEO Michael Eisner through his firm, Tornante Company. Other investors include Firstlight Media, whose technology powers the video service, and Gaingels, which focuses on backing LGBTQ+ founders and allies.

News: Airbyte announces $26M Series A for open source data connector platform

One of the major issues facing companies these days isn’t finding relevant data, so much as moving it to where it’s needed. Enter Airbyte, an early stage startup that is building an open source data integration platform to help solve that problem. Today the company announced a $26 million Series A, just a couple of

One of the major issues facing companies these days isn’t finding relevant data, so much as moving it to where it’s needed. Enter Airbyte, an early stage startup that is building an open source data integration platform to help solve that problem. Today the company announced a $26 million Series A, just a couple of months after announcing its $5.2 million seed round.

Benchmark led the investment with help from 8VC, Accel, SV Angel, Y Combinator and multiple tech industry luminaries. The company has raised over $31 million, all of it coming this year.

“What we’re building is an open source data integration platform to bring data wherever it is, whether it’s a database, a file or an API into the destination of your choice whether it is a data warehouse or a data lake,” company co-founder and CEO Michel Tricot told TechCrunch. This involves building connectors to various data types. The company is providing the open source platform and an SDK to build connectors, and inviting the community to add their own connectors, while building some too.

Things are moving quickly for the startup. In addition to the funding, it released its Connected Development Kit or CDK earlier this month. “It’s a local framework that enables you to build a custom connector within two hours instead of two or three days,” company co-founder John Lafleur explained. To this point, the community has contributed approximately 20% of the platform’s 70 connectors, but the two founders expect that percentage to increase as the CDK has time to spread in the community.

Airbyte was founded just last year and the company plans to spend this year trying to expand the rapidly growing community, which is up to 1200 members and 500 active users to this point. The long-term plan is to build a hosted version, which they will charge for, while continuing to work on the open source project.

Chetan Puttagunta, general partner at Benchmark, who is leading today’s investment, says that Benchmark has a long history of investing in open source startups including being an early investor in Red Hat, as well as Elastic, MongoDB, Acquia and many others.

He says that his firm approached Airbyte after seeing a lot of developer activity in the community in a short time. “We reached out to them just based on our involvement in the developer community. We started seeing Airbyte spike everywhere, and it started to become very quickly the de facto standard for how folks wanted to integrate data. And that was a remarkable achievement for a company that has been around for just several months.”

The rapid growth has led to the number of employees doubling to 14 in a short time. When it comes to diversity and inclusion, the founders have actually written a company handbook that includes a detailed section with definitions and goals around diversity and inclusion, not something you often see from an early stage company.

“We try to constantly improve on diversity inclusion and belonging, which is a continuous [thing]. [We] never would think it was done, We always have room to improve,” Tricot said.

News: How Expensify shed Silicon Valley arrogance to realize its global ambitions

Expensify may be the most ambitious software company ever to mostly abandon the Bay Area as the center of its operations. The startup’s history is tied to places representative of San Francisco: The founding team worked out of Peet’s Coffee on Mission Street for a few months, then crashed at a penthouse lounge near the

Expensify may be the most ambitious software company ever to mostly abandon the Bay Area as the center of its operations.

Expensify may be the most ambitious software company ever to mostly abandon the Bay Area as the center of its operations.

The startup’s history is tied to places representative of San Francisco: The founding team worked out of Peet’s Coffee on Mission Street for a few months, then crashed at a penthouse lounge near the 4th and King Caltrain station, followed by a tiny office and then a slightly bigger one in the Flatiron building near Market Street.

Thirteen years later, Expensify still has an office a few blocks away on Kearny Street, but it’s no longer a San Francisco company or even a Silicon Valley firm. The company is truly global with employees across the world — and it did that before COVID-19 made remote working cool.

“Things got so much better when we stopped viewing ourselves as a Silicon Valley company. We basically said, no, we’re just a global company,” CEO David Barrett told TechCrunch. That globalism led to it opening a major office in — of all places —a small town in rural Michigan. That Ironwood expansion would eventually lead to a cultural makeover that would see the company broadly abandon its focus on the Bay Area, expanding from a headquarters in Portland to offices around the globe.

It makes sense that a company founded by internet pirates would let its workforce live anywhere they please and however they want to. Yet, how does it manage to make it all work well enough to reach $100 million in annual revenue with just a tad more than 100 employees?

As I described in Part 2 of this EC-1, that staffing efficiency is partly due to its culture and who it hires. It’s also because it has attracted top talent from across the world by giving them benefits like the option to work remotely all year as well as paying SF-level salaries even to those not based in the tech hub. It’s also got annual fully paid month-long “workcations” for every employee, their partner and kids.

Yet the real story is how a company can become untethered from its original geography, willing to adapt to new places and new cultures, and ultimately, give up the past while building the future.

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