Monthly Archives: May 2021

News: Spotify adds timestamped podcast sharing and other social features

On the heels of its expanded partnership with Facebook, Spotify this morning announced new sharing features that broaden the way Spotify content, including both music and podcasts, can be shared across social media. As part of this, Spotify’s Canvas feature, which adds a looping, visual art experience to songs, is being improved. Spotify will also

On the heels of its expanded partnership with Facebook, Spotify this morning announced new sharing features that broaden the way Spotify content, including both music and podcasts, can be shared across social media. As part of this, Spotify’s Canvas feature, which adds a looping, visual art experience to songs, is being improved. Spotify will also now allow users to share a timestamped link to a podcast, which allows users to tune into to a particular moment of the podcast episode.

Previously, if you wanted to share a podcast episode, you could only post the link to the entire episode. But many times, people want to comment on or discuss a particular part of an episode. Now, they’ll be able to do so by using the “switch to share” feature at the current playtime, after tapping the “share” button while listening to the show.

This is toggle switch that lets you share from the timestamp where you’ve paused the show. After turning this one, you’re able to choose where you want to share to — like Instagram, Facebook (Stories or Feed), Snapchat, Twitter, WhatsApp, SMS, and more.

The feature could also potentially be used for podcast marketing purposes. Typically, creators post an interesting clip from their latest episode that includes a link to the episode. But Spotify’s new feature could entice someone to tune in at a particular part, then continue listening. They may even choose to follow the podcast after doing so, as they’ll have already found themselves in the Spotify app. While it may not replace other marketing — not everyone uses Spotify, after all — it could serve as a handy supplement to the creator’s existing promotional activity.

The update to Spotify’s Canvas, meanwhile, is a smaller improvement. Now, users are able to preview their social share across Instagram Stories and now Snapchat, to see how it will appear. Before today, Canvas art could only be shared to Instagram Stories.

Spotify notes that social sharing features had become a more important aspect of using its service during the pandemic, as in-person concerts and fan events had been shut down. Artists and creators still want to engage with their fans, but have had to do so remotely and digitally. And fans want to support their favorites by posting their content to social networks where others can discover them, too.

The new sharing features are a part of Spotify’s larger investment in expanded social media distribution, which recently led to its partnership with Facebook on something the social network called “Project Boombox.” Facebook in April introduced a new miniplayer that streams Spotify’s music and podcasts from the Facebook app. That way, users can listen while they scroll, with Spotify playing in the background. But Spotify’s deal with Facebook doesn’t limit it from making it easier to share to other platforms, as well, as these new features indicate.

Spotify says the new features are rolling out now to global users on both iOS and Android.

News: Hustle Fund wants to help spawn a new generation of angel investors

Kara Penn is the mother of four daughters and owner of Mission Spark, a management and strategy consulting company. And now, thanks to Hustle Fund, she is also an angel investor. Hustle Fund is coming out of stealth today with Angel Squad, a new initiative aimed at making angel investing more accessible to more people.

Kara Penn is the mother of four daughters and owner of Mission Spark, a management and strategy consulting company.

And now, thanks to Hustle Fund, she is also an angel investor.

Hustle Fund is coming out of stealth today with Angel Squad, a new initiative aimed at making angel investing more accessible to more people. To more people like Colorado-based Penn.

We believe that in order to increase diversity in the startup ecosystem, one thing that we must do is increase diversity — whether it be in regard to gender, race or geography — amongst angel investors,” said Hustle Fund co-founder and general partner Elizabeth Yin.

Via Angel Squad, Hustle Fund specifically aims to build an inclusive investor community, make minimum check sizes low and accessible (think as little as $1,000), provide “angel education” and give investors a way to invest alongside Hustle Fund.

“There’s been this misnomer, or at least I had this incorrect assumption that in order to become an angel investor, you have to be super rich and write $25,000 checks,” Yin told TechCrunch. “But the reality is actually in Silicon Valley, there are all these people running around investing $1,000 checks…and that’s something that’s a lot more accessible than then most people might think. And, part of the value of having this group is then we can accumulate a bunch of smaller checks to then write one larger check for a company.”

So far, Penn has invested in five startups across a range of sectors including real estate, food, apparel and finance. 

She describes herself as “a complete novice” in angel investing, and so far, she’s loving the experience.

I love Hustle Fund’s perspective that great hustlers can look like anyone and come from anywhere,” Penn told TechCrunch. “I’ve enjoyed being in a supportive community with differing levels of expertise, but where every question is welcomed.”

The experience is also broadening her exposure to technology and AI, the collection and use of data and the creation of new marketplaces in ways she never would have been exposed to before.

“As someone whose own company focuses exclusively on strategy in social impact organizations, I am also looking for how founders identify and bring to market creative solutions to complex problems, as well as exposure to a network of innovative people looking to solve hard issues in smart ways,” Penn said. “This exposure is helping me begin to think about applications of these approaches to difficult social problems.”

For some context, Hustle Fund is a venture firm founded by Elizabeth Yin and Eric Bahn, two former 500 Startups partners, with the goal of investing in pre-seed software startups. The firm has traditionally operated by investing $25,000 in a company, usually with a minimum-viable product, and then works with the team to help them grow. It does around 50 investments per year, according to its website. 

It recently closed on $33.6 million for a new fund.

“One of the things most important to us is this bigger mission of wanting to change the way the startup ecosystem is,” Yin said. “I noticed both as an entrepreneur and while running an accelerator, if you have a certain resume, went to certain schools, or were a certain race or gender, you have advantages in starting a company and getting funding. For many people, if you don’t tick those boxes, it can be very challenging. That’s why we’re investing in a lot of founders from all walks of life.”

Hustle Fund Venture Partner Brian Nichols had started a syndicate of Lyft alumni on AngelList. After doing a few deals, he opened up the syndicate to people outside of AngelList.

“I found there was a wide range of people looking to diversify into private markets, from all over the world with all types of backgrounds,” he said. “Hustle Fund and I had similar taste in companies I was investing in and I built a relationship with them in co-investments.”

Today, he’s helping run the fund’s Angel Squad initiative. So far, it has had two cohorts with over 150 investors total and true to the fund’s mission, those investors have been more diverse than typical angel syndicates: 46% of the members are female, 9% are underrepresented minorities and 32% are people who work outside of tech with professional roles such as lawyers, doctors and artists. Just one-third are based in Silicon Valley.

Every week, Angel Squad hosts an event which ranges from networking to a peek behind the curtain at opportunities at Hustle Fund is considering investing in to talking through why or why not to take a meeting with a founder.

“Imagine starting from zero, and if you could skip a bunch of steps and have Elizabeth (Yin) tell you how to do this before you lose a bunch of money in the process of evaluating a startup,” Nichols told TechCrunch. “Angel Squad is exactly what I wish had existed three or four years ago when I became interested in investing.”

Silicon Valley, Yin acknowledges, can be intimidating but the reality is that no one is an expert in everything.

“We’re trying to cultivate an environment where people are very kind — we have a no asshole rule, and that is a safe space where people can learn and feel like they can ask questions, and not have to know everything about angel investing. The reality is most people don’t. And we want to bring new people into this system.”

Besides not being an a-hole, other criteria in becoming a Squad Member include being able to add value and being an accredited investor.

“With rounds as competitive as they are today, we are looking for people who want to be actively supportive of the portfolio companies we’re investing in,” Nichols said. “Every person who wants to join the program is interviewed by someone from our team, who asks questions such as ‘What can you help a founder with?’ We are not looking for passive capital. That’s not super helpful at this point in the ecosystem.

News: Spring Sale: Save 10% on Extra Crunch membership

From now until May 16, TechCrunch readers can save 10% on an annual or two-year membership. That’s $89 per year in the U.S., with similar discounts for readers outside The States. Grab a 10% discount on Extra Crunch here.   Extra Crunch is a members-only community from TechCrunch. We help founders and startup teams get

From now until May 16, TechCrunch readers can save 10% on an annual or two-year membership. That’s $89 per year in the U.S., with similar discounts for readers outside The States.

Grab a 10% discount on Extra Crunch here.  

Extra Crunch is a members-only community from TechCrunch. We help founders and startup teams get ahead. 

  • Discover the hottest startups through our late-stage deep dives (EC-1s)
  • Spot trends and opportunities with private market analysis, investor surveys and topical newsletters
  • Build a better startup with fundraising, growth and workforce advice from experts
  • Improve your pitch with weekly Extra Crunch Live sessions, and watch event replays through our on-demand video library
  • Browse TechCrunch distraction-free with a lighter ad experience
  • Annual members get discounts on software from partners and can save 20% on TechCrunch event tickets

Since launching Extra Crunch, we’ve published thousands of articles on startup investment trends, fundraising, late-stage startups and more. Please consider joining our growing community of TechCrunch enthusiasts. 

Grab a 10% discount on Extra Crunch here.

For upgrades from monthly to annual or other questions about the deal, please contact customer service at extracrunch@techcrunch.com.

News: It’s the final homestretch to score a $99 pass to TC Disrupt 2021

We believe in rewarding early action with super savings. That’s exactly what you’ll get if you hit the brakes just long enough to buy a pass to TechCrunch Disrupt 2021 before our super early bird deal expires on Friday May 14, 11:59 pm (PST). Seriously, hit that easy target, and you’ll attend our three-day startup-palooza

We believe in rewarding early action with super savings. That’s exactly what you’ll get if you hit the brakes just long enough to buy a pass to TechCrunch Disrupt 2021 before our super early bird deal expires on Friday May 14, 11:59 pm (PST).

Seriously, hit that easy target, and you’ll attend our three-day startup-palooza for less than $100. You won’t find a better return on your investment of time or money. Disrupt, synonymous with opportunity, is where the global startup community gathers in virtual force to learn, show off their tech talent and network to build bigger, faster and smarter.

TechCrunch always delivers the leading minds, makers, investors and visionaries to deliver insight, explore developing trends and offer actionable advice that you can implement in your business now. Here are just a few of the notable speakers you’ll engage with at Disrupt. We’re still building the roster, so stay tuned for more heavy hitters to be added to the agenda.

  • Niko Bonatsos, managing director at General Catalyst
  • Saba Karim, head of accelerator pipeline at Techstars
  • Eleanor Morgan, chief product officer at InVisionApp

There’s still time for you to toss your gladiator hat into the ring and apply to compete in Startup Battlefield. Do you have what it takes to beat out some of the world’s top startups and take home $100,000? You’ll never know unless you apply before May 13, 11:59 pm (PST).

If you are an early stage startup and want to wring every ounce of opportunity out of Disrupt, consider exhibiting in Startup Alley. We’ve added extra features to help founders make the most of the virtual expo area. And file this under “but wait, there’s more!”  All early-stage startup that exhibit in Startup Alley are eligible to be one of the 50 startups selected for Startup Alley+ which gives you more exposure and more connection opportunities at no additional cost. The TechCrunch team will choose up to 50 startups for this VIP experience designed to provide more opportunities for exposure and growth before Disrupt begins. Learn more about the additional support you’ll receive if you’re selected for the Startup Alley+ program.

Pro Tip: Beat the super early bird deadline, and you’ll save $150 on a Startup Alley Pass. TechCrunch will select the Startup Alley+ participants by the end of June.

TC Disrupt 2021 takes place on September 21-23, but time to buy a pass for less than $100 is running out. Prices increase on May 14, 11:59 pm (PST). Beat the deadline and reap serious savings for taking early action.

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

News: Equity Monday: Dogecoin is passé, but student notes are big business

Hello and welcome back to Equity, TechCrunch’s venture capital-focused podcast where we unpack the numbers behind the headlines. This is Equity Monday, our weekly kickoff that tracks the latest private market news, talks about the coming week, digs into some recent funding rounds and mulls over a larger theme or narrative from the private markets. You

Hello and welcome back to Equity, TechCrunch’s venture capital-focused podcast where we unpack the numbers behind the headlines.

This is Equity Monday, our weekly kickoff that tracks the latest private market news, talks about the coming week, digs into some recent funding rounds and mulls over a larger theme or narrative from the private markets. You can follow the show on Twitter here and myself here.

This weekend was all about memecoins. And I am sorry about that. But Equity doesn’t run the world, sadly, it merely notes what is going on:

  • Dogecoin dropped during Elon Musk’s SNL appearance. Which was somewhat ironic. Also there’s another memecoin that is skyrocketing.
  • Palantir, DoorDash, Airbnb, Alibaba will report earnings this week, amongst others.
  • Clubhouse is finally coming to Android. In the United States. By invite. So, if that’s you, congrats, welcome to the app.
  • A major cyberattack and ransom situation in the United States is a data point, yet again, that we’re woefully unprepared for cyber risk.
  • StuDocu raised $50 million which was cool, while Gojek raised another $300 million, which was the very opposite of surprising.
  • This week’s Extra Crunch Live is going to be really good. I will see you there!

It is going to be a busy week! Already since we recorded this show there’s more drama from Box, and more. Strap in!

Equity drops every Monday at 7:00 a.m. PST, Wednesday, and Friday at 6:00 AM PST, so subscribe to us on Apple PodcastsOvercastSpotify and all the casts!

News: Indy VC firm Sixty8 Capital launches $20M fund aimed at underrepresented founders

It is clear that Black, women, Latinx and LGBTQ+ startup founders face an uphill battle when it comes to getting a share of the VC investment pie in Silicon Valley. Perhaps that’s why Sixty8 Capital, a firm based in Indianapolis, Indiana, smack dab in the middle of the country, has chosen to launch a new

It is clear that Black, women, Latinx and LGBTQ+ startup founders face an uphill battle when it comes to getting a share of the VC investment pie in Silicon Valley. Perhaps that’s why Sixty8 Capital, a firm based in Indianapolis, Indiana, smack dab in the middle of the country, has chosen to launch a new $20 million fund aimed at providing early stage funding for underrepresented founders.

The fund’s investors include The Indiana Next Level Fund, 50 South Capital, Bank of America, Eli Lilly and Company, First Internet Bank and the Central Indiana Community Foundation. It’s working with another Indy based VC firm, Allos Ventures, and Paul Ehlinger from Allos will be a venture partner at Sixty8.

“With this fund, what we’ll get to do is really start to empower people of color, women and other diverse communities by putting capital directly into their hands. Being able to invest directly into companies that are building amazing solutions that just so happen to be founded by diverse people. So that is why we launched Sixty8. I think there’s a unique opportunity we can address, and I’m really excited to have an impact both in our community in Indiana, but also around the Midwest and parts of the South as well,” Kelli Jones, managing partner at the firm explained.

Jones told me that she grew up in Indianapolis, and after moving to New York and later LA to work at the intersection of music, tech and entertainment, she returned to Indy in 2016 to begin helping Black people in the community where she grew up get trained to get decent jobs both in and out of tech. That led to the development of a startup incubator focused on Black founders and later a pitch competition.

She said at that point, it was clear the founders she was working with needed access to capital to have a chance to grow the businesses they were starting as part of the incubator and pitch competition, and the idea of an early stage fund began to take shape. She said that Indiana is known for B2B SaaS and she wanted to tap into that energy.

“You know we’re known as B2B SaaS and we’ve had some amazing exits here with ExactTarget and Salesforce and Angie’s List and Interactive Intelligence and Genesys, and so we’ve had a lot of really amazing things happening in the tech realm locally, but there’s not a lot of conversations being had around diversity and seeing more people of color and women and LGBTQ founders,” Jones told me.

The plan is to provide seed, pre-seed and maybe piggyback on an occasional A round with investments that range between $250,000 and $500,000 per company. She says that there is a ready pipeline from her other ventures including the incubator and pitch competitions and she is also plugged into the community where there is lots of startup energy.

She says that they wanted to set up a fund not only to address issues of diversity and having diverse people making decisions on investments, but also based on a strategy where the firm was able to invest in companies that may not always be perceived as typical venture backed business targets.

The first investment is with a B2B SaaS company called Qualifi, which uses AI to help companies with high volume hiring loads get through the qualification round much faster, taking from 7-10 days down to 3 or less, Jones told me.

The name of the firm hails back to 1968, a time in history when there was a lot of protest bubbling up around the country and calls for more equality for people of color, women and Gay rights. Jones says they had a different name when the firm first launched in 2019, but this seemed so much more appropriate for a company focused on empowering diverse groups.

“It feels like we’re still marching and trying to survive the same way we were in 1968 during the Civil Rights [movement] where we lost big leaders, and where the fire in everyone was just so big. We were fighting for women’s rights and Latino rights and Black rights and there was just so much happening, and it seems like in 2021 like we really still are in that same space,” she said.

News: Snack, a ‘Tinder meets TikTok’ dating app, opens to Gen Z investors

Snack, a video-first mobile dating app designed with a younger generation in mind, is opening itself up to Gen Z investors. The startup today announced the launch of its own Gen Z Syndicate on AngelList, which will allow Gen Z community members, influencers, creators and others to participate in the company’s upcoming $2 million SAFE,

Snack, a video-first mobile dating app designed with a younger generation in mind, is opening itself up to Gen Z investors. The startup today announced the launch of its own Gen Z Syndicate on AngelList, which will allow Gen Z community members, influencers, creators and others to participate in the company’s upcoming $2 million SAFE, alongside other funds and angel investors.

The company in February announced $3.5 million in seed funding for its modern, TikTok-style dating app where users post videos to a feed which others then like in order to be matched. Snack believes videos allow users to better showcase their interests and lifestyle, as well as show off their personalities in ways static photos cannot. When two people like each other’s videos, they’re invited to direct message one another.

The experience is very much like engaging with a TikTok that’s built for dating. In fact, Snack is one of the first apps that will be adopting TikTok’s new Login SDK for third-party apps, which gives Snack’s users the ability to reshare their TikTok videos to their dating profiles.

Image Credits: Snack

Snack’s founder, Kim Kaplan, has a history in the dating app market. She previously led product, marketing and revenue at Plenty of Fish, which later sold to Match Group for $575 million in 2015.

“If you think about Plenty of Fish, we really launched off of Google SEO,” Kaplan explains. “Then you had Zoosk and Badoo, which launched off of Facebook — when it was a really early platform and it was easy to get traffic from it. Then you had Tinder and Bumble, which launched off of mobile-first. They were the first apps to come out and design and build with mobile in mind versus the rest of us which were desktop, trying to cram everything into a mobile phone,” she says.

“And I fundamentally believe now that the right opportunity is the distribution on TikTok, as well as influencers. I think that combination of TikTok being the new distribution channel is going to be a massive opportunity — and that’s what we’re trying to leverage,” Kaplan says.

Longer-term, Snack is likely to grow beyond the young, Gen Z demographic. Already, the app is attracting users in their 20’s and early 30’s, thanks to its TikTok ties. But as TikTok naturally ages up, so will Snack.

Snack began fundraising in September of last year, then hired the team, built the app and launched in late February.

Image Credits: Snack

“We’re only about eight weeks into this right now, but we’re seeing a lot of excitement, a lot of user growth,” Kaplan says. “Because of that excitement that’s kind of building, people — a lot of really interesting people — came to the table and said they wanted to invest. But I didn’t have any room left in the previous rounds, so I decided to open up a SAFE.”

As part of that SAFE, Snack is carving out a certain amount to create its own syndicate. That way, Kaplan notes, “we don’t have any carry fees with another person, and [we’re] opening it up to Gen Z investors that want to participate in the round.”

Originally, the carve-out began at $100,000 but there is already enough interest that Kaplan says she expects it to go higher — perhaps a couple hundred thousand or larger, based on demand.

Among the Gen Z investors are VCs who have heard about Snack, but whose fund primarily invests at a later stage. Others are just people the company has been working with and getting advice from while building out the the app.

For example, Kaplan had reach out to the Gen Z Mafia, a group of technologists working to make venture capital and startups more inclusive, to help consult on Snack. The group’s leaders, Emma Salinas and Nicholas Huebecker, are credited with helping Kaplan come up with Snack’s pretzel logo and its brand name.

“Video first dating allows a unique sense of expression that you can’t portray with a few well-crafted words and filtered pictures,” said Huebekcer, of his interest in Snack. “For a mobile-first generation, this new form of authenticity will grow to be necessary. Snack allows users to express their real selves just like they do on TikTok, Snapchat, and other platforms we love,” he added.

Technology investor and Founder at The Innovation Armory, Samuel Natbony, is also joining the SAFE, alongside Monique Woodard (Cake Ventures), Backbone Angels, Shakti Ventures, Christian Winklund (previously CEO of dating app Skout which sold to Meet Group), Andrew Wilkinson and others.

“I want Gen Z to have a seat at the table and help shape what Snack becomes,” says Kaplan. “I want them to have that voice and participate, and be a champion for Snack,” she adds.

News: The Expensify EC-1

Let’s make it clear from the outset that this story is about an expense management SaaS business called Expensify. As you’d expect, yes, this is about the expense management market and how Expensify has grown, its technology and all of that. Normally, that would make us change the channel. But this is also a story

Let’s make it clear from the outset that this story is about an expense management SaaS business called Expensify. As you’d expect, yes, this is about the expense management market and how Expensify has grown, its technology and all of that. Normally, that would make us change the channel. But this is also a story about pirates; peer-to-peer hackers who asked, “Why not work from Thailand and dozens of countries across the globe?” and actually did it using P2P hacker culture as a model for consensus-driven decision-making — all with pre-Uber Travis Kalanick in a guest-starring role.

Most interestingly, this is a story about just not giving a damn about what anyone goddamn thinks, an approach to life and business that led to more than $100 million in annual revenue, and an IPO incoming on what looks to be a very quick timetable. Prodigious revenues, 10 million users and only 130 employees running the whole shebang — that’s a hell of an achievement in only 13 years.

If you’re going a bit “WTF,” well, we’d concur. Expensify is as contradictory as they come in the enterprise world. It’s managed to take what might well be the most boring part of the corporate business stack and turn it into something special. It doesn’t borrow its culture from other startups, it built its own tech stack from the ground up, and even hires in a completely radical way. Oh, and no one really has job titles either, because why the hell bother with hierarchy anyway? They’re pirates after all.

If expense management is about avoiding corporate plunder, then letting the pirates and hackers run the ship is probably the best approach. And now, Expensify is plundering the corporate spend world one travel ticket and business meal at a time just as the world is rebuilding in the wake of COVID-19.

TechCrunch’s writer and analyst for this EC-1 is Anna Heim. Heim is a tech journalist and former startup founder who has written for different tech publications since 2011. She recently joined Extra Crunch as a daily reporter, where she will be sharing insights on startups, particularly in SaaS. The lead editor of this package was Ram Iyer, the series editor was Danny Crichton, the copy editor was Richard Dal Porto, and original illustrations were created by Nigel Sussman with art direction from Bryce Durbin.

Expensify had no say in the content of this analysis and did not get advance access to it. Heim has no financial ties to Expensify or other conflicts of interest to disclose.

The Expensify EC-1 will be a serialized sequence of five articles published over the course of the coming weeks. We interviewed the company in February and March, well before the company announced a confidential filing of its S-1 to the SEC. Let’s take a look:

  • Part 1: Origin storyHow a band of P2P hackers planted the seeds of a unique expense management giant” (2,400 words/10 minutes) — Explores the colorful history of the Expensify founders’ days with Travis Kalanick’s venture before Uber, a P2P content distribution startup called Red Swoosh, and how that experience would eventually influence what would one day become an expense management giant.
  • Parts 2-5: Upcoming shortly.

We’re always iterating on the EC-1 format. If you have questions, comments or ideas, please send an email to TechCrunch Managing Editor Danny Crichton at danny@techcrunch.com.

News: How a band of P2P hackers planted the seeds of a unique expense management giant

It’s natural to think an expense report management business would play it by the book. But one look at Expensify is enough to tell you that this is a company that never even looked for the book.

Individuality often has no place in the enterprise software space. In a market where a single contract can easily run into the millions, homogeneity is the herald of reliability and serves to reassure buyers of the worth of their potential purchase.

So it’s natural to think a company in the expense report management business would keep it simple and play it by the book. But one look at Expensify is enough to tell you that this is a company that never even looked for the book.

Expensify’s origin story is one of a scrappy group of developers who turned travel into a catalyst for ideas and stuck together through highs and lows, ending up building one of the most unexpectedly original companies in enterprise software today.

Right from its famous “workcations,” to its management structure and its decision-making policies, Expensify has it in its DNA to eschew so-called best practices for its own ideas — a philosophy rooted in its founder and early team’s P2P hacker background and do-it-yourself attitude. As a result, Expensify is atypical of startups in many ways, inside and out.

Founder and CEO David Barrett made it clear his company was different in our first call itself: “We hire in a super different way. We have a very unusual internal management structure. Our business model itself is very unusual. We don’t have any salespeople, for example. We’re an incredibly small company. We focus on the employees over the bosses. Our technology stack is completely different. Our approach toward product design is very different.”

That description would make some people call Expensify weird even by startup standards, but this essential difference has set it apart in a space dominated by giants such as SAP Concur and Coupa. And that’s ultimately been to its benefit: Expensify reached $100 million in annual recurring revenue in 2020, with hefty 25% EBITDA margins to boot. There were also rumors of the company planning to go public during our interviews for this EC-1, but they stopped speaking to us in March, and now we know why: Expensify confidentially filed to go public on May 3.

Expensify’s origin story is one of a scrappy group of developers who turned travel into a catalyst for ideas and stuck together through highs and lows, ending up building one of the most unexpectedly original companies in enterprise software today.

When David met Travis …

To truly understand Expensify, you first need to take a close look at a unique, short-lived, P2P file-sharing company called Red Swoosh, which was Travis Kalanick’s startup before he founded Uber. Framed by Kalanick as his “revenge business” after his previous P2P startup Scour was sued into oblivion for copyright infringement, Red Swoosh would be the precursor for Expensify’s future culture and ethos. In fact, many of Expensify’s initial team actually met at Red Swoosh, which was eventually acquired by Akamai Technologies in 2007 for $18.7 million.

Barrett, a self-proclaimed alpha geek and lifelong software engineer, was actually Red Swoosh’s last engineering manager, hired after the failure of his first project, iGlance.com, a P2P push-to-talk program that couldn’t compete against Skype. “While I was licking my wounds from that experience, I was approached by Travis Kalanick who was running a startup called Red Swoosh,” he recalled in an interview.

News: This founder raised millions to build Fair, a neobank for immigrants

Fair, a multilingual digital bank and financial services platform, is launching to the public after raising $20 million in 40 days earlier this year. Founder Khalid Parekh raised the capital primarily from the very demographic that Houston-based Fair aims to serve: from a group consisting of a number of immigrants, many of whom were first-time

Fair, a multilingual digital bank and financial services platform, is launching to the public after raising $20 million in 40 days earlier this year.

Founder Khalid Parekh raised the capital primarily from the very demographic that Houston-based Fair aims to serve: from a group consisting of a number of immigrants, many of whom were first-time investors.

“There was not a single check from a VC or bank or from a family office,” Parekh told TechCrunch. “Ninety percent of our investors are minorities or are immigrants like myself that believed in the concept of Fair.”

One could say that it’s also fitting that Fair’s headquarters are in Houston, which at the time of the last census was the most ethnically diverse city in the United States.

Parekh is not your traditional fintech founder. He doesn’t have banking or financial services experience, although he does have experience founding and running a successful company: AMSYS Group, which is valued at nearly $350 million. His mission with Fair is largely personal. Upon arriving in the U.S. from India with just $100 in his pocket 22 years ago, he struggled to not only get a loan but also to open a bank account. 

Image Credits: Founder and CEO Khalid Parekh / Fair

“I was an engineer by background, but was very confused with the American banking system. There is not a lot of help for immigrants who don’t understand it well,” Parekh recalls. “My biggest challenge was sending money back home. There was just a lack of welcome.”

In 2020, he used his own cash to build out the technology behind Fair, which is designed to be an option to those who are new to the country, have no credit or need access to interest-free loans. Fair operates with Coastal Community Bank as its sponsor bank. Parekh’s goal with Fair is to provide “ethical, transparent banking” – to anyone – via a membership model that eliminates all banking fees. Members can pay a one-time membership fee of $99 (paid in full or in installments) to have access to all of Fair’s online banking and financial services.

“Another challenge that I saw is that there were hardly any options for insurance and retirement services for immigrants and low-income people,” Parekh said. “All big institutions catered to people with a lot of money. But we want to create an institution where we are fair to everybody, regardless of religion, race, color, net worth or how much is in their bank account. We want everyone to be treated the same.”

Over the past year, the nation has seen a surge of neobanks emerge aimed at specific demographics, including Greenwood, First Boulevard and Cheese. Welcome Technologies is also aimed at serving the immigrant population. 

Fair aims to differentiate itself, according to Parekh, by offering interest-free lending, as well as the ability to invest, get insurance and plan for retirement in one platform that is available in English, Arabic and Spanish (with more languages to come). Ultimately, his goal in Fair is to help address the “longstanding racial income inequalities and widening wealth disparities in the U.S.” He won’t get a salary for his role as CEO.

Among Fair’s features are free international transfer, early access to paycheck funds, “instant, interest-free” microloans — essentially buy now, pay later at the register — an annual dividend account, debit card accounts for kids and interest-free loans for home, auto and business that are equity-based. Those equity-based loans are Sharia compliant, meaning that it’s not kosher to take interest. They also comply with Jewish law.

Instead, if a member wants to buy a home, they can put 20% down, and Fair will provide 80% via an LLC, of which the member and bank will be co-owners.

“The members will have the option of buying out our shares on whatever schedule they wish,” Parekh said.

In partnership with Avibra, Fair is offering free supplemental life, accident medical and AD&D insurance to all members as part of its banking services.

Fair aims to practice socially responsible investing (SRI), an approach to investing that reduces exposure to companies that are deemed to have a negative social impact. The fintech also practices ESG investing, which measures the sustainability of an investment and its overall impact in three specific categories: environmental, social and corporate governance. And, it’s also working with the United Nations High Commissioner for Refugees and World Relief, and will donate 2.5% of profits to refugee missions globally, as well as racial economic empowerment initiatives.

Among Fair’s advisors are Manolo Sánchez, a director at Fannie Mae and Stewart Information Systems and former chair & CEO of BBVA Compass, and Samuel Golden, managing director at management consulting firm Alvarez & Marsal and founder of A&M’s Financial Industry practice.

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