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News: Insider hacks to streamline your SOC 3 certification application

If you’re a tech company offering anyone a service, somewhere in your future is a security assessment giving you the seal of approval to manage clients’ data and operate on your devices.

Alex Circei
Contributor

Alex Circei is CEO and co-founder of Waydev, a Git analytics tool that helps engineering leaders measure team performance automatically.

If you’re a tech company offering anyone a service, somewhere in your future is a security assessment giving you the seal of approval to manage clients’ data and operate on your devices. No one takes security lightly anymore. The business costs of cyberattacks have now hit an all-time high. Government bodies, companies and consumers need the assurance that the next software they download isn’t going to be an open door for hackers.

For good reason, security certifications like the SOC 3 really put you through the wringer. My company, Waydev, has just attained the SOC 3 certification, becoming one of the first development analytics tools to receive that accreditation. We learned so much from the process, we felt it was right to share our experience with others that might be daunted by the prospect.

As a non-tech founder, it was hard not only to navigate the process, but to appreciate its value. But by putting our business caps on, our team was able to optimize our approach and minimize the time and effort needed to achieve our goal. In doing so, we were granted SOC 3 compliance in two weeks, as opposed to the two months it takes some companies.

We also turned the assessment into an opportunity to better our product, align our internal teams, boost our brand and even launch partnerships.

So here’s our advice on how teams can smoothly reach an SOC 3 while simultaneously balancing workloads and minimizing disruption to users.

First, bring your teams on board

Because we can’t expect employees to stack those hours on top of their regular workdays, as a leader you have to accept — and communicate — that the speed of your output will inevitably decrease.

As a founder, you’ll be acting as captain steering a ship into that SOC 3 port, and you’ll need all members of your crew to join forces. This isn’t a job for a specially designated security team alone and will require deep involvement from your development and other teams, too. That might lead to internal resistance, as they still have a full-time job tending to your product and customers.

That’s why it’s so important to start by being crystal clear with your employees about what this process will mean to their work lives. However, they have to embrace the true benefits that will arise. SOC 3 will immediately raise your brand’s appeal and likely see new customers come in as a result.

Each employee will also come out the other end with well-honed cybersecurity skills — they’ll have a deep understanding of potential cyber threats to the company, and all security initiatives will carry a far lighter burden. There’s also the sense of pride and fulfillment that comes with having an indisputable edge over your competitors.

News: Twitter asks users to flag COVID-19 and election misinformation

Twitter introduced a new test feature Tuesday that allows users to report misinformation they run into on the platform, flagging it to the company as “misleading.” The test will roll out starting today to most users in the U.S., Australia and South Korea. In the new test, Twitter users will be able to expand the

Twitter introduced a new test feature Tuesday that allows users to report misinformation they run into on the platform, flagging it to the company as “misleading.” The test will roll out starting today to most users in the U.S., Australia and South Korea.

In the new test, Twitter users will be able to expand the three dot contextual menu in the upper right corner of a tweet to select “report tweet” where they’ll be met with the new option to flag a misleading tweet. The next menu offers users a choice to specify that a tweet is misleading about “politics,” “health” or “something else.” If they select politics, they can specify if the misleading political tweet pertains to elections and if they choose health they can flag a misleading tweet about COVID-19 specifically.

Twitter has added a way for users to report election-related misinformation before, though previously those options were temporary features linked to global elections. Back in 2019, the platform rolled out the option to report misleading tweets about voting to help safeguard elections in Europe and India.

The intention is to give users a way to surface tweets that violate Twitter’s existing policies around election and pandemic-related misinformation, two topics it focuses policy and enforcement efforts around. The user reporting system will work in tandem with Twitter’s proactive systems for identifying potentially dangerous misinformation, which rely on a combination of human and automated moderation. For now, users won’t receive any updates from the company on what happens to misleading tweets they report, though those updates could be added in the future.

While the new reporting feature will be available very broadly, the company describes the test as an “experiment,” not a finished feature. Twitter will observe how people on the platform use the new misinformation reporting tool to see if user reporting can be an effective tool for identifying potentially harmful misleading tweets, though the company isn’t on a set timeline for when to fully implement or remove the test feature.

For now, Twitter doesn’t seem very worried about users abusing the feature, since the new user reporting option will plug directly into its established moderation system. Still, the idea of users pointing the company toward “misleading” tweets is sure to spark new cries of censorship from corners of the platform already prone to spreading misinformation.

While the option to flag tweets as misleading is new, the feature will feed reported tweets into Twitter’s existing enforcement flow, where its established rules around health and political misinformation are implemented through a blend of human and algorithmic moderation.

That process will also sort reported tweets for review based on priority. Tweets from users with large followings or tweets generating an unusually high level of engagement will go to the front of the review line, as will tweets that pertain to elections and COVID-19, Twitter’s two areas of emphasis when it comes to policing misinformation.

The new test is Twitter’s latest effort to lean more on its own community to identify misinformation. Twitter’s most ambitious experiment along those lines is Birdwatch, a crowdsourced way for users to append contextual notes and fact-checks to tweets that can be upvoted or downvoted, Reddit-style. For now, Birdwatch is just a pilot program, but it’s clear the company is interested in decentralizing moderation — an experiment far thornier than just adding a new way to report tweets.

News: For British agency Ascendant, growth marketing is much more than a set of tactics

British growth agency Ascendant says growth marketing is a process that startups need to put in place in their early days that will scale as their customer base and internal teams grow.

Growth marketing is often misconceived as a set of tactics when it’s much more: It is a process that startups need to put in place in their early days that will scale as their customer base and internal teams grow.

This is where British growth agency Ascendant shines, Robyn Weatherley, head of marketing at Thirdfort, let us know via our growth marketing survey. Ascendant’s consultants haven’t just helped the British legal tech startup execute growth tactics, she wrote: “They’ve helped us set up the framework to keep executing on those whether we are five, 50 or 500 people.” (If you too have growth marketers to recommend, please fill out the survey!)

“If you don’t come from a growth marketing background, you don’t know how to even frame the problem, let alone fix it. This is why so much startup marketing is tactical rather than strategic.”

We followed up on this recommendation by interviewing Ascendant co-founder Gus Ferguson and partner Alyssa Crankshaw for our ongoing series of growth marketer profiles. If you are in the U.K., you might know them from the TechLondon Slack community, or bumped into them pre-COVID at the OMN London events, the digital marketing meetups they co-organize. In the interview below, they share how they work with early-stage companies, including tactical planning and building out tools for marketers to use without taking up internal engineering resources.

Editor’s note: The interview below has been edited for length and clarity.

Can you tell us about your background and how you came to work with startups?

Gus Ferguson: I’ve been a digital marketer for the last 15 or 16 years, and in 2009, I started one of the first content marketing agencies in the U.K. We did a lot of work with big travel brands, but the problem was that in big corporates, teams are in silos, so they weren’t able to take advantage of being at the forefront of marketing.

Gus Ferguson - Ascendant

Gus Ferguson. Image Credits: Ascendant

I was based in East London and I started working with a couple of startups. It’s also around that time that I partnered up with Alyssa. But we were looking at startups being hampered by traditional marketing — because traditional marketers were bringing big corporate problems to startups, when their key strength is their nimbleness and their agility and their ability to adapt.

That’s when we started developing processes for basically building businesses from scratch — when you don’t have any historical data to base your marketing strategies on. We were saying to them: Don’t ask us for a 12-month plan, because it’s a waste of time. But because there was that mindset at the time, that’s just what people expected. So we were going in and saying: You need a broad three-month plan, maximum; then a one-month plan in detail, and ideally a two-week sprint.

What kind of clients does Ascendant work with?

Gus Ferguson: Thanks to the growth framework that we’ve built up over time, we can pretty much work with any new business where there’s no existing process for marketing. We work with fintech, healthcare and legal companies, e-commerce brands, and both B2C and B2B. So startups, but also startup-type businesses. For instance, we worked with corporate ventures like Canon and VCs like Forward Partners, which was really interesting learning, because we were working with earlier-stage businesses than we would normally.

One million in funding is our sweet spot for startups. The reason for that is that it costs money to bring experienced growth experts into business, and up to that point, I believe it is important for founders to understand growth themselves. Being able to understand how to do it at that early stage will create such a valuable foundation of audience centricity for that business moving forward. A lot of what we do is bringing audience centricity into product-focused businesses — and generally encouraging founders to think about why their audience should care that they’ve got a solution to their problem.

Right, “build it and they will come” is a mistake that founders make all the time! Could you give more details on how you help them?

Gus Ferguson: Generally we’ll look at whatever they have as a foundation, and at similar businesses, and we’ll create an initial growth model. We’ll start putting hypotheses in place as to which channels are going to be the most effective at hitting their short-term objectives if they have them ready. But often, part of the process is also defining which metrics matter for that business, and working out how to measure them.

We always start working with founders and sales, and generally before or with one first marketing hire in place. Part of our work is to come up with projected results based on their funnel, but very often, with product-centric businesses, it will be that funnel that’s missing. So we bring in a bit of funnel thinking to those businesses and get that in place.


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And then there’s all sorts of what we call framework building that needs to be in place before you can start doing more traditional campaign-based marketing. So we’ll start looking at the specific frameworks around data, and how to form an objective truth for that business, with a shared understanding of the key metrics. When nobody knows what the fundamental data framework of that business looks like, for instance, because of team turnover or silos, we’ll tighten that up and make sure that everything is functioning together so that things like marketing automation are possible.

It’s perhaps a bit surprising about siloed teams at an early stage; how big are the startups you work with?

Gus Ferguson: We start when they are small, but we keep our clients for a long time. So, for example, we worked with Elder, which is a health tech startup. When we started off with them, there were 12 people, and when we finished with them, there were hundreds of people. Soldo is another example: When we started the marketing team was one person, and by the time we left, they were spanning three floors at WeWork.

Our lifecycle ends at Series B, because at that point, all the frameworks will be in place and they’ll be bringing everything in-house. So that’s our happy ending when the clients get to huge Series B raises. And then we move on to the next one that needs our help to get there.

But to go back to your question, slips happen because these are very venture-backed companies with very high growth not just in customers but also in their internal teams. Everybody is doing everything, everybody is new at their jobs, and there aren’t very many internal processes, so there’s an element of chaos. That’s where the need for cross-functional teams grew from — to step out of everybody’s individual chaotic worlds and create an island of shared objectives and order.

Alyssa Crankshaw - Ascendant

Alyssa Crankshaw. Image Credits: Ascendant

Alyssa Crankshaw: It’s just important for us to make people communicate. We often end up actually becoming a reason for the whole team to talk to each other — because we are external, they see more value in these tasks that they wouldn’t do otherwise.

How does that work in practice?

Gus Ferguson: An example of that is the CMS system we are putting in place for one client that we’re working with at the moment, where salespeople use it, marketing people use it, customer services people use it — and those teams were fairly siloed beforehand.

We also know that probably one of the biggest barriers to growth is marketers being dependent on developers, which are such a rare resource. We address that by implementing marketing frameworks at a basic level of the business whereby marketers are able to at least control basic marketing operations directly.

But one of the most important processes that we bring in is the cross-functional team, with one stakeholder from each department. It means that there’s at least one person on each team who understands what the objectives are, and then people start problem-solving together.

Didn’t that become more difficult with COVID-19?

Gus Ferguson: Potentially it got easier with remote. Usually, we find one person on each team — generally the team’s leader — and we bring them as spokespersons into the cross-functional team. In a remote world, it’s actually easier because you can just all jump on Zoom calls.

Alyssa Crankshaw: Even before COVID, we weren’t the type of consultants who sit several days a week in their client’s office. We are problem-solvers across the company, and we’ve always done that, whether it was from our old office or remotely now.

Gus Ferguson: Our own model also proved exceptionally flexible when we needed it to be during the pandemic. We are a core team of three people, and we are working with a network of specialized freelancers — so instead of worrying about fixed overheads, we can have agreements with trusted partners and morph into whatever our clients need at that time. Because of the nature of startups, as I said earlier, it doesn’t make sense to have long-term plans for businesses where there’s such a high rate of change. And from an agency perspective, it means that what we’re doing one month is always very different from what we’re doing the next month.

Alyssa Crankshaw: It’s a conscious decision not to follow a traditional agency model, because it helps us be flexible and bring in the specialists when we need them, rather than just having to use that person that sits on your payroll just because you have them. It’s much more effective for everybody.

What’s a thing that people might not know about what you do?

Gus Ferguson: Growth marketing is a process; it’s really how I differentiate it from traditional marketing. A lot of people will say that growth marketing is the AARRR funnel, but is that really any different from traditional marketing? Not really. Maybe you’ve got a broader set of channels than a traditional marketer would focus on. But what’s really different is the process that gives our clients confidence that they’re doing the right thing, even if they’ve never done it before. Because that’s how you learn.

One of the challenges with doing something new for the first time, in a team of people who are also doing a new thing for the first time with no historical data, is that you quite often don’t even know how to frame that. If you don’t come from a growth marketing background, you don’t know how to even frame the problem, let alone fix it. This is why so much startup marketing is tactical rather than strategic, or even worse, tool-led. People think: “Oh, if I was using this tool, then all my problems would be solved,”  when, actually, you need to be able to create the hypotheses and understand the objectives that the hypotheses are answering.

Alyssa Crankshaw: We give our clients the roadmap, the foundation and the operational structure in which to run campaigns, retention, acquisition or whatever the target may be, which is huge for them. Because when creating everything from scratch, that’s where we often see a lot of overtesting. We love a good test — we’re both marketers — but we only like to test the big things. And sometimes when working with inexperienced people, we see a lot of new tests about the smallest things, which is a waste of time and resources. And there are some other things that are foundational, and you just know which they are if you are an experienced marketer and you have done this so many times in your life.

News: Apple’s sustainability-focused Impact Accelerator invites first 15 Black- and brown-owned companies

Among Apple’s more recent social good initiatives is the Impact Accelerator, an effort launched about a year ago intended to find and elevate minority-owned small businesses taking on sustainability and climate change. The program now has its first 15 participants, gathered from all over the country for a three-month program and a shot at an

Among Apple’s more recent social good initiatives is the Impact Accelerator, an effort launched about a year ago intended to find and elevate minority-owned small businesses taking on sustainability and climate change. The program now has its first 15 participants, gathered from all over the country for a three-month program and a shot at an Apple contract.

The Impact Accelerator is part of the company’s $100M Racial Equity and Justice Initiative, which is being divided between a number of efforts, some directly funding existing programs, some going to venture firms owned by people of color, and generally whatever the Initiative’s team thinks is a good investment.

These companies will take part in a three-month-long virtual program (the details are not discussed in Apple’s announcement post) and then will have the opportunity to become suppliers for Apple’s carbon neutral supply chain goals.

Apple profiles all 15 companies in this list, but here are five that caught my eye:

  • Volt Energy Utility (Co-Founder: Gilbert Campbell III) – Developer of utility-scale solar projects with a focus on underserved communities.
  • Bench-Tek (Founder: Maria Castellon) – A manufacturer of lab benches that focuses on using environmentally friendly materials.
  • Vericool (Founder: Darrell Jobe) – Aims to make sustainable alternatives to Styrofoam and other packaging products, and makes a point of hiring formerly incarcerated folks.
  • Oceti Sakowin Power Authority (Chairman: Lyle Jack) – Not a company per se, but an NGO formed by six Sioux tribes dedicated to developing renewable energy in the Midwest and on reservations.
  • Mosaic Global Transportation (Founder: Maurice H. Brewster) – Supplies employee and event shuttles and other vehicles with an aim to replace gas-operated ones with EVs.

“The businesses we’re partnering with today are poised to become tomorrow’s diverse and innovative industry leaders, creating ripples of change to help communities everywhere adapt to the urgent challenges posed by climate change,” said Apple’s VP of Environment, Policy, and Social Initiatives, Lisa Jackson, in the announcement.

News: What does Brazil’s new receivables regulation mean for fintechs?

This the story of one regulator, the Brazilian Central Bank, and how it has taken center stage in creating a framework that will have far-reaching effects on merchants and fintechs in Brazil.

Leonardo Lanna
Contributor

Leonardo Lanna is head of payment products at Monkey Exchange, a Brazilian marketplace startup that enables sellers to offer receivables from sales in a single platform to many buyers at once, receiving the best price with low effort.

Something strange is afoot in Brazil, and it promises great changes for how merchants get paid.

This the story of one regulator, the Brazilian Central Bank, and how it has taken center stage in creating a framework that will have far-reaching effects across merchants and fintechs in this fast-growing Latin American nation.

But first, some background: Unlike in the rest of the world, when a credit card is used for payment in Brazil, the merchant does not receive the funds owed to them all at once. Instead, nearly 50% of card sales are completed in monthly installments, leaving the sellers to manage a difficult cash flow process.

The most common solution for merchants is that they end up selling the remaining receivable at a discount — taking less than they are owed — in order to get their money sooner. And we’re not talking about a small-volume market: Some R$2 trillion (Brazilian Reais) in card transactions were processed in 2020.

This compelling new regulatory framework brings new opportunities for many players willing to participate in receivables discounting operations.

Here’s what this looks like in practice: Let’s say Maria purchases a few articles of clothing from retailer Clothing Incorporated. When paying via her credit card at checkout, Maria can choose to pay in two to 12 installments. Maria decides to pay the balance of R$620 over six installments.

While Maria is happy with the products in hand, Clothing Incorporated is without the full payment — and for small merchants in particular, the difficulties associated with limited working capital can be acute. Clothing Incorporated can either wait the full six months to be paid, receiving payments from their merchant acquirer each month until they are paid in full, or they can choose to dramatically discount the amount they are owed and not have to wait the six months.

Let’s say Clothing Incorporated merchant acquirer is ExMarko — instead of receiving R$620 over six months (net of any merchant discount rates), they could receive R$520 within days after the purchase, with ExMarko pocketing the rest when it comes in. This comes at a steep cost of doing business to the merchant, with an implied annualized interest rate that sometimes can reach  ~70% — for a risk-free operation, since the acquirer is only liquidating earlier its own obligation to pay the merchant.

News: Google’s Pixel 5a with 5G adds water resistance, a bigger battery and a headphone jack

It’s no secret that Google is in the midst of a pretty massive overhaul of its Pixel division. The Pixel 6 offers the next major Hail Mary for the company’s hardware division, complete with its own custom chip, Tensor. This is not that. The new flagship won’t be available until the fall. Meantime, here’s the

It’s no secret that Google is in the midst of a pretty massive overhaul of its Pixel division. The Pixel 6 offers the next major Hail Mary for the company’s hardware division, complete with its own custom chip, Tensor.

This is not that. The new flagship won’t be available until the fall. Meantime, here’s the 5a, the latest addition to the “budget flagship” line that’s proven a nice overall sales boost for a struggling department.

Image Credits: Google

Google confirmed the phone’s existence back in April, mostly as a way of curbing rumors prematurely predicting the unannounced handset’s death. “Pixel 5a 5G is not canceled,” the company told TechCrunch at the time. “It will be available later this year in the U.S. and Japan and announced in line with when last year’s a-series phone was introduced.”

And, indeed, here it is. The handset officially goes on sale August 26 for $449. The Pixel 5a with 5G is, in a word, “safe” — a fact highlighted by the recent announcement of the Pixel 6. This is very much not a phone from a company looking to shake things up, but rather, the remnants of a division that was content to play right down the middle in the smartphone wars. Safe isn’t a bad word — particularly not at this price point. It’s sturdy (now with IP67 water resistance!) and it’ll get the job done.

As the name very clearly implies, the price includes 5G connectivity. That’s coupled with a dual-camera — with the same 12- and 16-megapixel setup as the Pixel 5. Those perform a slew of software-enabled modes, including Night Sight, Live HDR+ and Portrait Light. The phone is powered by the same mid-tier Snapdragon 765G process, while the RAM has been reduced down to 6GB.

Image Credits: Google

Storage is the same at 128GB and, interestingly, the battery has actually been bumped up from 4080 mAh to 4680. The screen, too, has been expanded from 6.0 to 6.34 inches, with the same resolution. It drops the Pixel 5’s wireless charging, but hey, there’s a headphone jack.

The Pixel 5a with 5G is up for preorder starting today.

News: IKEA will sell clean energy to Swedish homes

IKEA won’t just sell you smart lights — it’ll soon sell you the electricity to power those lights, too. IKEA has revealed plans to sell clean energy to Swedish homes through a subscription service.

Jon Fingas
Contributor

Jon Fingas is a contributing writer at Engadget.

IKEA won’t just sell you smart lights — it’ll soon sell you the electricity to power those lights, provided you live in the right country. Electrek notes that IKEA has revealed plans to sell clean energy to Swedish homes through a Strömma subscription service. Pay the (as yet unmentioned) fee and you’ll get certified solar- or wind-generated electricity with usage you can track through a mobile app.

The home furnishings giant didn’t say whether it would expand the clean energy sales to other countries, although it hoped to let people “use and generate” renewable energy in “all our Ingka Group markets” by 2025. The company already sells solar panels.

The retailer is no stranger to eco-friendly efforts. It stopped selling non-LED lights and will soon drop non-rechargeable alkaline batteries. It’s even planning to turn a Swedish city into a sustainable community. And there’s little doubt this will help burnish IKEA’s public image. It can address concerns about the chain’s environmental impact by serving as a clean energy source.

It’s still a significant move, though, and we wouldn’t be surprised if other larger stores followed suit. It’s not just a feel-good effort that could reduce emissions — sales of excess clean energy could recoup costs and boost profits.

Editor’s note: This post originally appeared on Engadget.

News: Governments should invest in their diaspora founders

Many governments that are not major tech hubs (i.e., most countries excluding the U.S., China, Israel and India) should stop restricting themselves to supporting locally domiciled VC funds.

Prabhat Gusain
Contributor

Prabhat Gusain is currently the chief of staff at Caffeinated Capital and was previously an intern with Versatile VC. He is a 2021 MBA from UVA Darden.

David Teten
Contributor

David Teten is founder of Versatile VC and writes periodically at teten.com and @dteten.

We are brainstorming a new solution to a widespread challenge in many countries: How to develop a self-sustaining, independent local tech ecosystem. We propose that governments should systematically support funding for their diaspora founders, not just founders locally.

There are three main players in any tech ecosystem:

  • The first are founders who want to build companies and need funding. In many ecosystems outside of the major tech hubs, founders face cultural, legal, reputational and other hurdles to building a successful tech company. As a result, many of them emigrate to the U.S. Immigrants contribute to the success of the U.S. innovation economy at a vastly disproportionate rate.
  • Next are VC firms looking for founders. In a very small number of geographies, there is no shortage of VC funds (NY, CA, Boston, Israel, Beijing). But in most cities in the world, there is only a relatively small number of VC funds.
  • Then you have national and local governmental organizations interested in promoting economic growth and job creation. They particularly want to see a thriving tech ecosystem generating high-paid jobs.

Our proposal is that many governments that are not major tech hubs (i.e., most countries excluding the U.S., China, Israel and India) should stop restricting themselves to supporting locally domiciled VC funds.

Many countries’ governments (Canada, France, etc.) have created or supported funds to invest in local VC managers. Usually, governments have a two-part goal: Achieve good returns and generate jobs. However, in many cases, these VC funds have failed on one or both counts.

There is a reason the definitive book on the topic has such a depressing title: “Boulevard of Broken Dreams: Why Public Efforts to Boost Entrepreneurship and Venture Capital Have Failed — and What to Do about It,” by my former professor, Josh Lerner, head of the entrepreneurial management unit and the Jacob H. Schiff Professor of Investment Banking at Harvard Business School.

Silicon Valley, Singapore, Tel Aviv ― the global hubs of entrepreneurial activity ―all bear the marks of government investment. Yet, for every public intervention that spurs entrepreneurial activity, there are many failed efforts that waste untold billions in taxpayer dollars … [The book] reveals the common flaws undermining far too many programs ― poor design, a lack of understanding for the entrepreneurial process, and implementation problems.

Our proposal is that many governments that are not major tech hubs (i.e., most countries excluding the U.S., China, Israel and India) should stop restricting themselves to supporting locally domiciled VC funds. Instead, they should consider investing in VC funds that invest in their diaspora.

We argue that this benefits the home country in three ways:

Remittances: Entrepreneurs will send money home to their families.

Brain gain: If you look at the leaders of the tech ecosystem in most countries, you will see a very disproportionate number of people who have education and work experience abroad, especially in the U.S. Diaspora entrepreneurs bring the knowledge and understanding acquired outside the country that may help them see possibilities not apparent to people who have not lived elsewhere. On the other hand, these entrepreneurs often encounter entrenched attitudes, resentment from non-migrants, and administrative barriers in bringing money, materials and equipment from abroad.

Job creation: Even if a French emigrant starts their business in New York, when they expand, France will be a logical place for a European HQ. In addition, as the firm grows, there are many functions they may set up in their home country, such as engineering, QA and customer support.

The private sector has already identified this opportunity. In New York City, there already exist numerous VC funds with particular interest in certain diasporas. For Israel, we have Elevator Fund, Hanaco, Innovation Endeavors, JANVEST Capital Partners, Pereg Ventures, Team8, numerous others. See “The ultimate guide to US investment in Israeli startups.”

For the Canadian diaspora, you have iNovia Capital and HOF Capital for people from MENA, while ff Venture Capital looks at Poland.

Governments could model these efforts on leading global public/private organizations that have supported diaspora entrepreneurs in many other ways.

Networking, mentoring and training: Governments can offer opportunities for diaspora and local business leaders to meet one another and discuss potential business and investment opportunities in the homeland. Many of these groups also offer startup services such as market research, business plan advisory, matching with seasoned executives and registering a business. A few such groups are the African Diaspora Network (ADN), The Indus Entrepreneurs (TiE) (Southeast Asia), Advance (Australia) based in New York, C100 (focused on Canadian tech leaders), GlobalScot, Irish Executive Mentorship Program and Red de Talentos Mexicanos.

Investment (almost entirely in the home country): Investment is typically in the form of pooled private and public funds, or matching grants, and typically requires a physical presence in the home country. A few such organizations include:

  • The African Foundation for Development (AFFORD) was founded in 1994 as a nonprofit organization by Africans living in the U.K. to help expatriates there create wealth and jobs back home. Its investment activities include the Diaspora Finance Initiative (DFI), AFFORD Diaspora Grants and the AFFORD Business Club.
  • Moldova has a Pare 1+1 program that offers funding and entrepreneurial training to immigrants (and returnees) into Moldova.
  • Chile Global Ventures (part of Fundación Chile) finances startups through its network of over 100 influential Chileans living in the U.S., Canada and Europe. They invest in Chilean startups or companies abroad founded by Chileans.
  • Ecuador’s Fund El Cucayo provides risk capital in a matching-funding format, 50-50 or 25-75, to returning Ecuadorian entrepreneurs in Ecuador.

Recruiting new citizens: The Canadian Startup Visa Program is great for recruiting international talent. This is an enormous opportunity for Canada to further leverage its historic openness to immigrants. From my point of view as an American, our history of welcoming immigrants (including my French father) is one of our greatest advantages compared to our geopolitical rivals. We’re fools if we don’t aggressively leverage this unique asset.

So here’s our question: Which forward-thinking governments are open to the idea of supporting funding to their diaspora? In our conversations with some senior government officials outside of the U.S., what we’ve heard is, “We love the idea, but it would be difficult to get political support for anything that involves sending money abroad.”

Who can surmount this challenge?

News: As its startup market accelerates, Brazil could be in for an IPO bonanza

‘There are many high-quality tech companies being built in Brazil with very experienced management teams and very exciting stories that will capture the hearts and wallets of Brazilian … investors.’

Brazil’s startup market is reaching new heights, and its domestic stock market could benefit from the boom.

According to data from KPMG, Brazilian startups raised the most capital in a single quarter in Q1 2021, when some $1.4 billion flowed into domestic technology upstarts. That record stood until the second quarter of 2021 saw $2.7 billion raised by Brazilian startups.


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Inflows are only half of the startup equation, however. Brazil has seen notable acquisitions in recent years, including Twilio buying Teravoz in January 2020, and Etsy buying Elo7 in June for more than $200 million. Magazine Luiza spent $528 million to buy Kabum, a Brazilian e-commerce player, earlier this year.

Acquisitions are merely one path to liquidity, however. IPOs are another. The good news for Brazil and its startup ecosystem is that despite a historical dearth of technology public offerings on domestic exchanges, the IPO market for Brazilian tech startups could be gearing up for more volume.

GetNinjas, a platform for hiring local labor for household needs like plumbing and painting, went public earlier this year on the B3 exchange, located in São Paulo. And it’s not alone.

The IPO market in Brazil is changing, data indicates. TechCrunch noted last year that in the decade leading up to 2020, just two of the 56 IPOs in Brazil were technology companies. More recently, the number of technology companies listed in the country has swelled to at least 16, up from just four in 2019.

Will the trend of domestic IPOs continue for Brazilian technology companies? Or will U.S. IPOs play a preeminent role for the country’s leading tech startups?

The question is not idle, with São Paulo-based fintech giant Nubank heading toward an eventual public offering and more capital than ever wagered on the country’s current generation of startups, all of which must aspire to the most famous of exit paths. Brazil is also minting new unicorns, with at least four graduating to the valuation threshold this year alone.

But even that data point is outdated: Just this morning, Nuvemshop, a Brazilian e-commerce company, announced a new $500 million round valuing it at more than $3 billion.

To better understand the recently expanding number of domestically listed Brazilian technology offerings, and what could be ahead for the country’s startups, The Exchange spoke to GetNinjas CEO Eduardo L’Hotellier about its IPO and Renata Quintini from Renegade Partners, a venture capital firm, about what’s happening in the country. We’ll lean on data as we go. Let’s explore Brazil!

What’s driving rising technology IPO volume in Brazil?

The number of public companies, overall depressed compared to historical highs in the Brazilian market, is impacted by both sector-specific and more macro trends. When we consider what is driving more technology offerings in Brazil, we’ll want to think about larger macroeconomic factors along with what’s happening in technology more specifically.

News: OnlyFans promotes its SFW app as it seeks funding at a $1B+ valuation

OnlyFans — the platform where adult creators can directly monetize their audience — is pushing its safe-for-work app OFTV, which is available on iOS and Google Play. The ad-free app launched in January, sharing over 800 videos from OnlyFans creators, like cooking tutorials, yoga routines, and interviews. But this week will be the first time

OnlyFans — the platform where adult creators can directly monetize their audience — is pushing its safe-for-work app OFTV, which is available on iOS and Google Play. The ad-free app launched in January, sharing over 800 videos from OnlyFans creators, like cooking tutorials, yoga routines, and interviews. But this week will be the first time that OnlyFans will market the app to reach people who aren’t existing OnlyFans customers.

“There’s no adult content on OFTV. Because it’s not being monetized and there’s no direct impact on creators’ earnings, we are able to be in the app store,” OnlyFans CEO Tim Stokley told Bloomberg. The App Store and Google Play both prohibit pornography, but in the case of apps with user-generated content (like Reddit), NSFW content can slide as long as it’s labelled as such and hidden by default. OnlyFans, as it exists on the web, hasn’t been approved on Apple’s App Store or Google Play.

Image Credits: OFTV (screenshots by TechCrunch)

OnlyFans is profitable, but to continue to grow, it is seeking funding at a valuation of over $1 billion. Per Bloomberg, OnlyFans wants to become a more mainstream platform in order to solicit advertisers that may be worried about its adult reputation. Even celebrities like Cardi B and athlete Floyd Mayweather Jr. have joined OnlyFans. In March 2020, the app also launched a Creative Fund, which rewarded four musical artists with a £20,000 grant. Plus, the “rising stars” the app features on its blog include songwriters, photographers, stylists, personal trainers, and chefs. Its effort to highlight SFW creators is clear, and the promotion of OFTV supports that.

The platform has paid out over $3 billion in creator earnings since its founding in 2016 — in particular, revenue grew over 553% in 2020, when many people turned to OnlyFans for an income stream in a time of pandemic-induced financial strain. OnlyFans takes 20% from creators’ earnings, and comparatively, Patreon charges between 5-12%, while Cameo takes 25%. Even if OnlyFans were accepted to app stores — NSFW content and all — it may not even be good for creators, who would then lose an extra 30% to app store fees on top of the platform’s 20% cut. But OFTV doesn’t sell content or allow unsolicited users to upload videos, so its apparent purpose is to generate more excitement around non-pornographic OnlyFans content.

To appeal to SFW creators, OnlyFans might have to shed its image (for those concerned with that), but perhaps more importantly, the platform would need to show that it is a particularly profitable space for creators. Its sales speak volumes, but that could have more to do with the booming creator economy and the nature of the content it hosts, rather than the platform itself.

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