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News: This startup just created a fast, accurate COVID test that only needs saliva and links to an app

We’re entering a phase in the COVID-19 pandemic where transmission is going to go through the roof because of the Delta variant. But as vaccinations ramp up around the world, the main cost to society now will not be the health services being overwhelmed, but mass disruption to businesses as staff are forced to self

We’re entering a phase in the COVID-19 pandemic where transmission is going to go through the roof because of the Delta variant. But as vaccinations ramp up around the world, the main cost to society now will not be the health services being overwhelmed, but mass disruption to businesses as staff are forced to self isolate by track and trace systems. Thus, biosecurity in the workplace (or any other setting for that matter) is going to matter a lot.

The paragraph you just read above is in fact a paraphrase of the recent open letter sent by a number of eminent UK scientists to the government about the next phase of the pandemic.

So if it’s the case that workplace biosecurity is going to have to be much more efficient, then faster, better forms of testing are going to be needed. Now, a UK startup thinks it may have cracked the problem.

Bio-security company Vatic has come up with its ‘KnowNow’ test for CoVID-19 which it claims is more accurate than lateral flow tests, is faster, easier (only a swab from your mouth is needed), allows test data sharing, and even produces a ‘Passport’ QR code to enable someone to access services or workplaces.

Vatic has now raised $6.37 million to deliver its at-home tests, starting with the one tailored to COVID-19.

The seed funding round was led by London-based VCs LocalGlobe and Hoxton Ventures.

Founded in 2019, Vatic has built a saliva-based test that is about generating data in the home. The company says the test takes fewer than 15 minutes and can identify people who are actually infectious at that moment, rather than get a false positive because the body has fought off the infection. Existing antigen tests can have a false positive rate of 1 in 200.

Vatic test

Vatic test

The company says its test identifies infectious viruses by mimicking the surface of a human cell, effectively redesigning how lateral flow tests are built and “enhancing their accuracy”.

Its KnowNow saliva-only rapid antigen test for COVID-19 is in fact now being used in the UK after receiving CE mark approval. It pairs its saliva test with an app that makes it possible to share at-home test results with health or other platforms instantly. The saliva self-swabbing technique is obviously much easier to do and less uncomfortable than current Lateral Flow Tests that require swabbing the back of the throat and nasal passages. Vatic is also now doing clinical trials in the US to secure Emergency Use Authorisation from the FDA.

Alex Sheppard, co-founder and CEO of Vatic, explained: “One reason for the recent decline in the uptake of rapid Covid-19 tests is the sampling technique – it’s currently very uncomfortable and difficult for people to use. We need to take the pain out of mass testing if we’re to return to normal to minimize the disruption caused by future COVID-19 outbreaks, whether in offices, schools, or hospitality venues. That’s why we’ve built supportive biosecurity technology that sits  alongside the test, allowing users to generate their own unique QR codes to facilitate safe venue entry.”

How does it work? Vatic says its technology searches for the ‘spike’ on the virus as a measure of infectivity, but also says it is immune to potential mutations of the virus, making it able to test for COVID-19 no matter the variant.

Sheppard said the Vatic test is only the first iteration. It can also detect other infectious viruses by mimicking the surface of a human cell.

“We selected the part of the Coronavirus that uses its spike to enter human cells, almost like a hypodermic needle,” Sheppard told me. “That’s the bit that essentially interacts on our test, and so, effectively, we’re mimicking a human cell on our test, which is completely unique. It’s got a completely different engine to a normal Lateral Flow Test, because the chemistry that’s powering it is totally different.”

The other aspect of the Vatic test is that it employs an app linked to the saliva swap test. Once the test is done it produces an encrypted QR code.

“It’s not altogether dissimilar to what we see on the NHS tests,” Sheppard said, “but it’s a completely trust-based system, so you don’t have to compromise your health data. You’re not writing your home address into a government website. Of course, it does synchronize with the government requirements of reporting a notifiable disease, but it’s designed to ensure that you know you’re not giving away too much health data. It’s secure.”

Sheppard and his co-founder Mona Omir met at Oxford University, at the accelerator program Entrepreneur First in September 2019 and have gone on to raised money from both London investors and grant support from the Oxford Foundry / University of Oxford and Innovate UK.

Julia Hawkins, partner at LocalGlobe, commented: “Vatic’s technology is the future of testing. It’s fantastic to hear how many top UK organizations are taking the initiative and putting employee testing at the forefront of their business recovery plan. This new round of investment will be key in ensuring the successful roll-out of KnowNow tests across the UK and internationally and getting economies moving again with minimal interruptions.”

Rob Kniaz, partner at Hoxton Ventures, added: “A saliva-only swab is a true breakthrough in the world of uncomfortable and tricky rapid testing and the speed that the Vatic team have got it to market is very impressive. Excitingly for the business, this test is just the start of their journey – the opportunities to innovate in the at-home testing market are endless.”

News: The Artemis Fund focuses on women founders in underserved communities

The Artemis Fund is a Houston-based firm built by three women with the goal of encouraging more women-led startups. The company launched in 2019 and has raised a $15 million initial fund, which closed earlier this year. Diana Murakhovskaya, who launched the firm with Stephanie Campbell and Leslie Goldman, says that the three women met

The Artemis Fund is a Houston-based firm built by three women with the goal of encouraging more women-led startups. The company launched in 2019 and has raised a $15 million initial fund, which closed earlier this year.

Diana Murakhovskaya, who launched the firm with Stephanie Campbell and Leslie Goldman, says that the three women met over a mutual interest in investing in startups, one that didn’t just write a check and walk away, but that was really involved in helping these companies grow and thrive.

“We launched the fund in 2019, and we were looking to raise a micro VC to invest in about 15 companies, and keep a concentrated portfolio where we can really help these companies,” she said. The LPs in the fund are split 50/50 between men and women with an equal capital share among them, she said.

The women recognized that female founders faced an up-hill battle when it came to getting funding. In fact, in 2019 Crunchbase research found that just 13% percent of VC money went to startups with at least one female founder with all female founding teams accounting for just 3% of that.

At the same time, as the women came together in the Houston investing scene, they couldn’t help but notice that it was mostly dominated by older white men. Murakhovskaya, whose background is engineering, connected with Campbell, who has an MBA and they wanted to know why more women weren’t getting involved.

“I said, ‘Where are all the women?’ […] And so we started doing these dinners to bring together women and asking them why they’re not investing, what they’re doing and, and these were all corporate women [who had the money to invest].”

What they found was that either women had never been invited to invest, or like them they were looking to do it, but found angel investing less than satisfying. About this time, they met Goldman, who was a lawyer, and was on the board at the Houston Angel Network. “She’s an active angel in about 50 companies and 11 funds and similarly had this thesis of shifting all of her investing to female founders at the time,” Murakhovskaya said.

The three women with distinctly different professional backgrounds decided to come together and the idea for The Artemis Fund began to take shape. “We thought it was the perfect [mix] — kind of what happens when an engineer, an MBA and a lawyer get together. So, we find that our backgrounds are unique, and that helps a lot of our portfolio companies in a lot of different ways,” she said.

That meant they wanted to be involved with the founders and help them grow the businesses. “And so that was one thing we wanted to make sure that differentiates us from the other female-focused VCs. We would invest nationally, we would lead or co-lead most of our rounds and really help the companies along the capital stack. And that meant running a much more concentrated portfolio.”

The fund focuses on startups with female founders, who are in large potential markets, but ones that conventional male-dominated VCs might not see the potential in. Among the portfolio companies is UNest, a company that helps families take advantage of tax-exempt college savings accounts to save money for their kids’ college education and Upgrade, a maker of custom wigs and extensions. These businesses checked each of these boxes of being run by a woman in a large market that had been mostly ignored by the traditional investment community.

Murakhovskaya says so far the firm has invested in 11 companies with plans to invest 4-5 more and then raise the next fund. She says while it’s about helping nurture and build these companies, it’s also about finding companies that continue to grow into their Series A, B and beyond, while delivering a good return for the company’s partners.

“This is not a charity or philanthropy. We really believe that women and diverse teams in particular will outperform, on top of bringing together a different set of companies and products and services that are just not being met for the consumers that they’re trying to serve.”

News: Biden’s sweeping executive order takes on big tech’s ‘bad mergers,’ ISPs and more

The Biden administration just introduced a sweeping, ambitious plan to forcibly inject competition into some consolidated sectors of the American economy — the tech sector prominent among them — through executive action. “Today President Biden is taking decisive action to reduce the trend of corporate consolidation, increase competition, and deliver concrete benefits to America’s consumers,

The Biden administration just introduced a sweeping, ambitious plan to forcibly inject competition into some consolidated sectors of the American economy — the tech sector prominent among them — through executive action.

“Today President Biden is taking decisive action to reduce the trend of corporate consolidation, increase competition, and deliver concrete benefits to America’s consumers, workers, farmers, and small businesses,” a new White House fact sheet on the forthcoming order states.

The order, which Biden will sign Friday, initiates a comprehensive “whole-of-government” approach that loops in more then twelve different agencies at the federal level to regulate monopolies, protect consumers and curtail bad behavior from some of the world’s biggest corporations.

In the fact sheet, the White House lays out its plans to take matters to regulate big business into its own hands at the federal level. As far as tech is concerned, that comes largely through emboldening the FTC and the Justice Department — two federal agencies with antitrust enforcement powers.

Most notably for big tech, which is already bracing for regulatory existential threats, the White House explicitly asserts here that those agencies have legal cover to “challenge prior bad mergers that past Administrations did not previously challenge” — i.e. unwinding acquisitions that built a handful of tech companies into the behemoths they are today. The order calls on antitrust agencies to enforce antitrust laws “vigorously.”

Federal scrutiny will prioritize “dominant internet platforms, with particular attention to the acquisition of nascent competitors, serial mergers, the accumulation of data, competition by ‘free’ products, and the effect on user privacy.” Facebook, Google and Amazon are particularly on notice here, though Apple isn’t likely to escape federal attention either.

“Over the past ten years, the largest tech platforms have acquired hundreds of companies—including alleged ‘killer acquisitions’ meant to shut down a potential competitive threat,” the White House wrote in the fact sheet. “Too often, federal agencies have not blocked, conditioned, or, in some cases, meaningfully examined these acquisitions.”

The biggest tech companies have regularly defended their longstanding strategy of buying up the competition by arguing that because those acquisitions went through without friction at the time, they shouldn’t be viewed as illegal in hindsight. In no uncertain terms, the new executive order makes it clear that the Biden administration isn’t having any of it.

The White House also specifically singles out internet service providers for scrutiny, ordering the FCC to prioritize consumer choice and institute broadband “nutrition labels” that clearly state speed caps and hidden feeds. The FCC began working on the labels in the Obama administration but the work was scrapped after Trump took office.

The order also directly calls on the FCC to restore net neutrality rules, which were stripped in 2017 to the widespread horror of open internet advocates and most of the tech industry outside of the service providers that stood to benefit.

The White House will also tell the FTC to create new privacy rules meant to guard consumers against surveillance and the “accumulation of extraordinarily amounts of sensitive personal information,” which free services like Facebook, YouTube and others have leveraged to build their vast empires. The White House also taps the FTC to create rules that protect smaller businesses from being pre-empted by large platforms, which in many cases abuse their market dominance with a different sort of data-based surveillance to out-compete up-and-coming competitors.

Finally, the executive order encourages the FTC to put right to repair rules in place that would free consumers from constraints that discourage DIY and third-party repairs. A new White House Competition Council under the Director of the National Economic Council will coordinate the federal execution of the proposals laid out in the new order.

The antitrust effort from the executive branch mirrors parallel actions in the FTC and Congress. In the FTC, Biden has installed a fearsome antitrust crusader in Lina Khan, a young legal scholar and fierce Amazon critic who proposes a philosophical overhaul to the way the federal government defines monopolies. Khan now leads the FTC as its chair.

In Congress, a bipartisan flurry of bills intended to rein in the tech industry are slowly wending their way toward becoming law, though plenty of hurdles remain. Last month, the House Judiciary Committee debated the six bills, which were crafted separately to help them survive opposing lobbying pushes from the tech industry. These legislative efforts could modernize antitrust laws, which have failed to keep pace with the modern realities of giant, internet-based businesses.

Citing the acceleration of corporate consolidation in recent decades, the White House argues that a handful of large corporations dominates across industries, including healthcare, agriculture and tech and consumers, workers and smaller competitors pay the price for their outsized success. The administration will focus antitrust enforcement on those corners of the market as well as evaluating the labor market and worker protections on the whole.

“Inadequate competition holds back economic growth and innovation… Economists find that as competition declines, productivity growth slows, business investment and innovation decline, and income, wealth, and racial inequality widen,” the White House wrote.

 

News: 3 analysts weigh in: What are Andy Jassy’s top priorities as Amazon’s new CEO?

We asked several analysts to identify the top problems he will have to address in his new role.

It’s not easy following a larger-than-life founder and CEO of an iconic company, but that’s what former AWS CEO Andy Jassy faces this week as he takes over for Jeff Bezos, who moves into the executive chairman role. Jassy must deal with myriad challenges as he becomes the head honcho at the No. 2 company on the Fortune 500.

How he handles these challenges will define his tenure at the helm of the online retail giant. We asked several analysts to identify the top problems he will have to address in his new role.

Ensure a smooth transition

Handling that transition smoothly and showing investors and the rest of the world that it’s business as usual at Amazon is going to be a big priority for Jassy, said Robin Ody, an analyst at Canalys. He said it’s not unlike what Satya Nadella faced when he took over as CEO at Microsoft in 2014.

Handling the transition smoothly and showing investors and the rest of the world that it’s business as usual at Amazon is going to be a big priority for Jassy.

“The biggest task is that you’re following Jeff Bezos, so his overarching issue is going to be stability and continuity. … The eyes of the world are on that succession. So managing that I think is the overall issue and would be for anyone in the same position,” Ody said.

Forrester analyst Sucharita Kodali said Jassy’s biggest job is just to keep the revenue train rolling. “I think the biggest to-do is to just continue that momentum that the company has had for the last several years. He has to make sure that they don’t lose that. If he does that, I mean, he will win,” she said.

Maintain company growth

As an online retailer, the company has thrived during COVID, generating $386 billion in revenue in 2020, up more than $100 billion over the prior year. As Jassy takes over and things return to something closer to normal, will he be able to keep the revenue pedal to the metal?

News: WhatsApp is adding a ‘best quality’ setting for sending photos and videos

Kris Holt Contributor Share on Twitter Kris Holt is a contributing writer at Engadget. WhatsApp is working on a setting that will let users more easily bypass its iffy image compression and send photos and videos in the highest available fidelity. The “best quality” option will likely join “auto” and “data saver” choices in a future

Kris Holt
Contributor

Kris Holt is a contributing writer at Engadget.

WhatsApp is working on a setting that will let users more easily bypass its iffy image compression and send photos and videos in the highest available fidelity. The “best quality” option will likely join “auto” and “data saver” choices in a future version of the app.

It appears users will eventually have the choice of whether to compress photos and videos to perhaps save on their data allowance, send them in the best available quality or let WhatsApp automatically select the optimal level of compression for files.

The settings are present in an update WhatsApp submitted to the Google Play Beta Program, as spotted by WABetaInfo. The options will probably arrive in the public Android build of the app, though it’s not clear when — they’re currently in development. It’s likely the additional image quality options will come to iOS as well, since WhatsApp generally maintains the same features across both platforms.

This could come as welcome news for those who don’t use the stock messaging apps on iOS or Android and often share photos and videos of their loved ones (Apple Messages retains the original image quality most of the time). Meanwhile, multi-device support is also on the way to WhatsApp.

Editor’s note: This post originally appeared on Engadget

News: Didomi raises $40 million to help you manage customer consent

French startup Didomi has raised a $40 million Series B funding round led by Elephant and Breega. The company manages consent flows for web publishers and app developers. Didomi is already doing well in Europe with billions of consent interactions per month — it plans to expand to the U.S. with today’s funding round. “Jawad,

French startup Didomi has raised a $40 million Series B funding round led by Elephant and Breega. The company manages consent flows for web publishers and app developers. Didomi is already doing well in Europe with billions of consent interactions per month — it plans to expand to the U.S. with today’s funding round.

“Jawad, Raphaël and I have co-founded Didomi to make privacy easier for everyone and an obvious choice for companies. This fundraising is a major milestone on our journey to deliver on this mission,” co-founder and CEO Romain Gauthier said in a statement.

“We look forward to helping brands and publishers make customer journeys more transparent and trustworthy through a delightful consent and preferences management experience,” he added.

In recent years, many regulators have implemented new privacy-focused frameworks. You might think about GDPR in Europe for instance.

And if you live in a country that is affected by those changes, you are now well aware that you’ll get a consent popup or banner whenever you visit a new website or open an app for the first time.

I wouldn’t say that these popups are “delightful” as the best consent popup is the one that doesn’t exist because the site you’re visiting doesn’t collect and share personal data. But that’s not always possible and there are different reasons why you may need to collect data — including on this current site techcrunch dot com.

In that case, a product like Didomi can be really helpful. Taking those consent flows seriously is extremely important as you don’t want to mess up the implementation and get fined. Didomi is a developer-focused consent platform that works across many different devices. You can configure your consent flow for a desktop website, a mobile website, a mobile app or a connected TV.

Having a unified solution also means that you don’t have to ask for permission over and over again. Didomi can store and synchronize preferences across devices. Everything is auditable in case regulators want to see how you’re collecting consent.

With today’s funding round, the company wants to make its product even more developer friendly with open APIs and open-source SDKs. It doesn’t mean that Didomi is for everyone as the company focuses on premium clients in particular. Clients include Rakuten, Orange, Giphy and Weight Watchers International.

The company will also hire more people with local marketing and sales teams for different markets. Didomi plans to open offices in Germany, Spain and the U.S.

At the same time, the landscape is quickly evolving. Web browsers are gradually blocking third-party trackers and Apple now even asks you if an app can track you at the operating system level. It’s going to be interesting to see how Didomi evolves with user expectations.

News: This crowdsourced payments tracker wants to solve the ransomware visibility problem

Ransomware attacks, fueled by COVID-19 pandemic turbulence, have become a major money earner for cybercriminals, with the number of attacks rising in 2020. These file-encrypting attacks have continued largely unabated this year, too. In the last few months alone we’ve witnessed the attack on Colonial Pipeline that forced the company to shut down its systems

Ransomware attacks, fueled by COVID-19 pandemic turbulence, have become a major money earner for cybercriminals, with the number of attacks rising in 2020.

These file-encrypting attacks have continued largely unabated this year, too. In the last few months alone we’ve witnessed the attack on Colonial Pipeline that forced the company to shut down its systems — and the gasoline supply — to much of the eastern seaboard, the hack on meat supplier JBS that abruptly halted its slaughterhouse operations around the world, and just this month a supply chain attack on IT vendor Kaseya that saw hundreds of downstream victims locked out of their systems.

However, while ransomware attacks continue to make headlines, it’s near-impossible to understand their full impact, nor is it known whether taking certain decisions — such as paying the cybercriminals’ ransom demands — make a difference.

Jack Cable, a security architect at Krebs Stamos Group who previously worked for the U.S. Cybersecurity and Infrastructure Agency (CISA), is looking to solve that problem with the launch of a crowdsourced ransom payments tracking website, Ransomwhere. 

“I was inspired to start Ransomwhere by Katie Nickels’s tweet that no one really knows the full impact of cybercrime, and especially ransomware,” Cable told TechCrunch. “After seeing that there’s currently no single place for public data on ransomware payments, and given that it’s not hard to track bitcoin transactions, I started hacking it together.”

The website keeps a running tally of ransoms paid out to cybercriminals in bitcoin, made possible thanks to the public record-keeping of transactions on the blockchain. As the site is crowdsourced, it incorporates data from self-reported incidents of ransomware attacks, which anyone can submit. However, in order to make sure all reports are legitimate, each submission is required to take a screenshot of the ransomware payment demand, and every case is reviewed manually by Cable himself before being made publicly available. If an approved report’s authenticity is later called into question, it will be removed from the database.

The already-burgeoning database, which doesn’t include any personal or victim-identifying information, is available as a free download for the cybersecurity community and law enforcement officials, which Cable hopes will help give some much-needed public transparency about the current state of the problem.

“As we consider policy proposals to change the state of ransomware economics, we will need data to assess whether these actions are successful,” Cable said. “For law enforcement, as we saw with the Colonial Pipeline hack, law enforcement does have the ability to recover some payments, so it would be great if this can further aid their efforts.”

At the time of writing, the site is tracking a total of more than $32 million in ransom payments for 2021. The bulk of these payments have been made to the REvil, the Russia-linked ransomware gang that took credit for the JBS and Kaseya hacks. The group has racked up more than $11 million in ransom payments this year, according to Ransomwhere, an amount that could increase dramatically if its recent demands for $70 million as part of the Kaseya attack are met. 

Netwalker, one of the most popular ransomware-as-a-service offerings on the dark web, comes in second with more than $6.3 million in payments for 2021, though Ransomwhere’s tally shows that the group has racked up the most ransom payments in total, with roughly $28 million to its name based on the site’s data.

RangarLocker, DarkSide, and Egregor round out Ransomwhere’s top five list — for now at least — having amassed sums of $4.6 million, $4.4 million, and $3.2 million, respectively. 

Cable says that going forward, he’s exploring ways of partnering with companies in the security and blockchain analysis spaces in order to integrate data that they already have on ransomware actions. He’s also looking at ways to support other traceable cryptocurrencies, such as Ethereum, as well as at the potential to track downstream bitcoin addresses. 

“It’ll never be possible to get the full picture — criminals who are using Monero will be near-impossible to track”, Cable says. “But I would like to get as complete of a picture as possible.”

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News: Startups have never had it so good

The venture capital market is racing ahead, foot on the gas, middle finger out the window, hair on fire. That’s our read of the Q2 2021 data released thus far.

The venture capital market is racing ahead, foot on the gas, middle finger out the window, hair on fire. That’s our read of the Q2 2021 data released thus far concerning how much money venture capitalists deployed around the world during the second three months of the year.

Startups have never had it this good when it comes to accessing private-market funds.


The Exchange explores startups, markets and money.

Read it every morning on Extra Crunch or get The Exchange newsletter every Saturday.


The second quarter of 2021 was the biggest quarter for venture capital activity ever, measured by dollars invested. The wave of funding led to a quarterly record of new unicorns — startups that reach the $1 billion valuation threshold — born in the United States, Asia, Europe and Canada, according to CB Insights data reviewed by The Exchange.

Data from FactSet concerning the quarter agrees. The second quarter was a record-breaker in terms of dollars invested, even if total deal volume eased some from the first quarter’s tally.

The impact of the deluge of capital is what you’d expect: Round values are rising. Deals worth $100 million are setting records. And around the world, technology hubs are enjoying a flurry of high-priced deals that are enriching startups and providing them with capital at earlier stages that used to be reserved for IPOs and other seminal funding events.

So today we’re talking through the numbers. Next week, we’ll publish a host of geography-focused notes and reactions from investors and founders in the U.S. startup ecosystem, along with similar entries concerning the Asian and European startup markets.

Chatting with venture capitalists in recent months led us to expect strong second-quarter results; investors have spoken about ever-faster follow-on rounds and the explosion of high-priced, big-dollar deal-making from Tiger. SoftBank’s second vision fund is active. And there are myriad seed, early-stage, late-stage and crossover funds all competing with each other both inside and outside their normal investing stage bands in hopes of either accreting earlier, larger ownership than a bigger investing group might have in years past or working to defend early ownership past where earlier-stage firms used to exit stage left.

But enough words. Let’s get into the numbers. We’ll start with an overview of global results before diving into U.S. and Silicon Valley tallies, Europe and Asia’s performances, and new data concerning venture capital activity in Africa.

Buckle up.

A monster quarter

We’re pulling from a number of sources this morning, but for global data, we’re leaning on CB Insights, Crunchbase News and FactSet.

CB Insights has $156 billion on the books for global venture capital activity in the second quarter, up from $60.7 billion in Q2 2020. That’s a gain of 157% on a year-over-year basis. A FactSet chart indicates around $150 billion was raised in the second quarter, up a similar percentage from its year-ago result as what CB Insights counted.

For the first half of 2021, inclusive of the record second-quarter tally, the data is similarly shocking. Crunchbase News counts $288 billion invested during the first and second quarters of the year. CB Insights reckons the number of $292.4 billion. FactSet comes to a number that it describes as “over $280 billion.”

Those are all close enough for us, and they say the same thing: Global startups raised either as much, or very nearly as much, in the first two quarters of 2021 as they did in all of 2020.

As a reference point, Crunchbase News notes that the first half of 2021 crushed the second half of 2020 by $110 billion, in terms of global capital raised.

But what about round counts? Was all that capital concentrated in a few investments, or did the money flow freely to more startups than ever? Here, things get a little tricky. CB Insights data states that there were 7,751 startup deals in the second quarter, an all-time high. FactSet counts 5,400, far from its recorded record. At this juncture we’re seeing discrepancies in how different data-focused firms count; Alex was party to similar conversations during his time at Crunchbase and is sympathetic to the difficulty of deciding what to include and not in these types of surveys.

But even FactSet data indicates that the second quarter was the second-best three-month period for venture round counts since the start of 2019. No matter how you count, then, the data indicates lots of deals — and even more dollars.

A unicorn stampede

News: Brazilian HR startup Flash raises $22M in a Tiger Global-led Series B round of funding

Flash, a startup that has developed a flexible benefits platform for Brazilian companies and employees, has raised $22 million in a Series B round of funding led by Tiger Global Management. Monashees (which led Flash’s Series A), Global Founders Capital (who backed Flash’s seed round), Citius and Kauffman Fellows also participated in the financing. Founded

Flash, a startup that has developed a flexible benefits platform for Brazilian companies and employees, has raised $22 million in a Series B round of funding led by Tiger Global Management.

Monashees (which led Flash’s Series A), Global Founders Capital (who backed Flash’s seed round), Citius and Kauffman Fellows also participated in the financing.

Founded in 2019 by childhood friends Ricardo Salem, Guilherme Lane and Pedro Lane, Flash is out to revamp what it views as an antiquated way of offering benefits to employees in South America’s largest country.

The São Paulo-based company has built a flexible benefit management app provided with a Mastercard in an effort to replace what has historically been provided in the form of “outdated, commoditized and mandatory” meal/food and transportation “vouchers.”

“Our first product was a reinvention of the voucher that by Brazilian labor law, was something of a mandatory benefit for all companies to give as part of compensation,” Salem said. “There are four traditional incumbents, owned by the banks, that held 95% of the market with very outdated products and fat margins, and exploitation all over.”

Beyond that, Flash took its offering a step further by giving companies a way to configure their benefits offering so employees can “choose and manage their benefits as they want” via Flash’s app marketplace and card, noted Salem.

The company must be doing something right.

Since its inception, Flash has grown its customer base to 4,000 companies, ranging from startups and SMEs to enterprises.

Last year, Flash grew “10x” by all metrics. It went from 10,000 employees to 100,000 using its platform. So far, this year that number has already swelled to 250,000. While the company declined to reveal hard revenue figures, Lane said the growth in customers is reflected in the company’s GMV. Flash has also grown from about 50 to 200 employees over the past 8 months.

Image Credits: Flash

At the beginning of the pandemic when companies were sending employees home and wanting to help them pay bills for electricity and utilities, there wasn’t any instrument to help them do so, Salem said.

“So we built one in our app, which leverages our wallet and it was able to read the bar or QR code of the utility provider,” he added. “It became a very popular benefit.”

Within that same wallet, Flash has built another product — an incentive and rewards platform..

Even with all its early success, Flash has just a 1% market share so believes “there’s plenty of room to grow.” And, it views itself as “much more of a horizontal play than a geographical play.”

“We’re solving other pain points for companies in Brazil now, and that’s our plan for the short term,” Lane said.

“In the beginning, we saw this as a very cool thing very modern tech companies wanted,” Salem said. “But last year proved that this is not just a midsize tech company product. This is for every employee from tech employees to blue collar workers to CEOs Everyone has a flexible benefit need and different lifestyles and need a product adapted to all of those.”

Global Founders Capital’s Fabricio Pettena led Flash’s seed round back in 2019. He said he had been searching for disruption in the space for “a long time.”

“Since it is a big market in Brazil due to regulation, the incumbents really rip off restaurants and others,” Pettena told TechCrunch.

He said he knew immediately he wanted to invest in Flash.

“Flash’s team actually took an active role in the regulation change that allowed for flexible benefits, instead of just playing passive,” he said. “When we first met, within 15 minutes, it was clear that, apart from a couple of details, we already shared a common vision for how this disruption would take place.”

News: Frontier launches with $2.8M round by NFX, to let low-skilled job candidates book their own interview

Frontier, which bills itself as a “new kind of vertically-integrated jobs marketplace” launches today with a $2.8M investment round led by NFX in the US, and backed by London’s firstminute Capital, FJ Labs, Cyan Banister, Ilkka Pannanen, Alex Bouaziz, Liquid 2 and several other funds and angels. Frontier’s schtick is that it pre-tests applicants, weeds

Frontier, which bills itself as a “new kind of vertically-integrated jobs marketplace” launches today with a $2.8M investment round led by NFX in the US, and backed by London’s firstminute Capital, FJ Labs, Cyan Banister, Ilkka Pannanen, Alex Bouaziz, Liquid 2 and several other funds and angels.

Frontier’s schtick is that it pre-tests applicants, weeds out the best candidates, and then allows them to directly book interviews with the employers, thus saving time and money in the hiring process.

But Frontier isn’t going after complex roles here. Its aimed at companies who need a high volume of low-skilled workers. Among its customers so far are Carrol’s (the largest franchisor of Burger King) and Concentrix. 

Elliot O’Connor, Founder and CEO of Frontier said: “We believe the hiring experience is a fragmented workflow for both employer and jobseeker, which dramatically slows down the time-to-fill for positions and leads to rigid labor markets  – something the world can’t afford right now. To fix hiring, a platform must own more of the hiring funnel than job platforms currently do, and use that position to redefine the experience.”

Elliot told me over a call that they are not using an algorithm in the AI sense of the word. It also removes unconscious bias by applying skill-based assessments: “We’re focused on high volume, low skilled workers, so for example, customer support or retail or warehouses. So we’re just assessing for things like typing speed etc. No one’s going to look at the resume. It’s a rule-based system so that the company does get to set the rules themselves. There’s no AI.”

He added: “We’ve gone and eaten up a lot of the different pieces of software that are out there and combined them into a single vertically integrated whole. So we’ve got a screening software that’s basically modular so every customer gets their own screening, according to their own criteria and the machine does it for them. So at the interviews they’re going to have qualified candidates.”

Pete Flint, NFX General Partner said: “Frontier is changing the entire talent sourcing process by providing an on-demand experience that’s already present in so many parts of life. Shortening the window of finding work and making hires is creating substantial benefits across large segments of the labor market. The network effects embedded in Frontier’s product and business model make it completely different to the traditional incumbents.”

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