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A Reckoning at Condé Nast

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This was supposed to be Condé Nast’s year.

The publisher of Vogue, Vanity Fair and The New Yorker was going to be profitable again after years of layoffs and losses.

Then advertising revenue suddenly dropped as the coronavirus pandemic cratered the economy. More recently, as protests against racism and police violence grew into a worldwide movement, company employees publicly complained about racism in the workplace and in some Condé Nast content.

In response, the two leaders of the nearly all-white executive team — the artistic director, Anna Wintour, and the chief executive, Roger Lynch — offered apologies to the staff.

At an all-hands online meeting on Friday, employees asked if Ms. Wintour, the top editor of Vogue since 1988 and the company’s editorial leader since 2013, would be leaving. Mr. Lynch and the communications chief, Danielle Carrig, shot down the question, saying Ms. Wintour was not going anywhere, said three people who attended the meeting but were not authorized to discuss it publicly.

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Credit…Christophe Petit Tesson/EPA, via Shutterstock

Tumult has hit Condé Nast, a company built partly on selling a glossy brand of elitism to the masses, at a time when its financial outlook is grim. Last year, the U.S. division lost approximately $100 million on about $900 million in revenue, said several people with knowledge of the company, who were not authorized to speak publicly. The European arm also had losses.

Mr. Lynch said in an interview Friday that he was “not familiar” with the cited figures, adding that the company’s merger of its domestic and international operations, part of a recent restructuring, had been costly.

In April, the company instituted pay cuts for anyone making over $100,000. Then came layoffs — 100 jobs gone out of roughly 6,000.

Condé Nast is one of many media organizations, including The New York Times, whose employees have questioned company leaders as people around the world have taken part in protests prompted by the killing of George Floyd, a black man who died last month in Minneapolis after a white police officer pinned him to the ground.

The company has been led by the Newhouse family since 1959. Steven Newhouse heads the parent company, Advance, and his cousin Jonathan Newhouse is chairman of Condé Nast’s board. Advance also controls more than 40 newspapers and news sites across the country. Many of them, including The Plain Dealer of Cleveland and The Star-Ledger in Newark, have struggled. The Newhouse family has protected itself against losses with significant investments in the cable giant Charter and the media conglomerate Discovery.

Before the internet took readers away from print, Condé Nast was known for thick magazines edited by cultural arbiters who traveled in the same circles as the people they covered. As digital media rose, Condé Nast was slow to adapt. Budgets tightened. Magazines including Gourmet, Mademoiselle and Details folded.

By the time Mr. Lynch, a former head of the music streaming service Pandora, succeeded Robert A. Sauerberg as the chief executive last year, Condé Nast was in triage mode. After his arrival, it unloaded three publications: Brides, Golf Digest and W.

On Monday, Condé Nast reckoned with how the company deals with issues related to race. Adam Rapoport, the longtime top editor of Bon Appétit, resigned after a photo surfaced on social media showing him in a costume that stereotypically depicted Puerto Rican dress.

Credit…Bryan Bedder/Getty Images

He apologized to staff members in a videoconference. After Mr. Rapoport left the call, the staff voiced complaints about the Bon Appétit workplace. Some minority employees said they had been used as ethnic props in Bon Appétit’s videos, a growing segment of the Condé Nast business.

“It’s so hard to be a person of color at this company,” said Ryan Walker-Hartshorn, a black woman who worked as an assistant to Mr. Rapoport. “My blood is still boiling.”

She recalled a 2018 meeting of editors to discuss how to make the magazine’s Instagram account more diverse. In a room of about eight editors, three were people of color.

“And we’re all very junior, no power,” Ms. Walker-Hartshorn said in an interview. “I was like, ‘You’re asking us how to make our Instagram black without hiring more black people?’”

At a company forum on Tuesday, Mr. Lynch said Bon Appétit employees should have raised their concerns earlier, a comment that rubbed many the wrong way. In a closed-door session later that day, he apologized to a group of staff members who had pushed for Mr. Rapoport’s ouster.

“I want you to know I take this personally, and I take personal responsibility for it,” he said, according to an audio recording of the meeting obtained by The New York Times.

A onetime banker at Morgan Stanley, Mr. Lynch spent much of his career at Dish, the satellite TV service. As a hobby he played lead guitar in a classic-rock cover band, the Merger. He moved from San Francisco to New York and updated his wardrobe to join Condé Nast.

Mr. Lynch, 57, has emphasized diversity efforts and environmental programs in emails to the staff. He said in the interview on Friday that he was developing an overall company strategy as he assembled his executive team. In December he hired Deirdre Findlay as the chief marketing officer, making her the company’s highest-ranking black executive.

Credit…Patrick T. Fallon/Bloomberg

His former executive assistant, Cassie Jones, who is black, quit shortly after he gave her a gift she considered insulting, three people with knowledge of the matter said.

In November, after she had spent four months working for him, Mr. Lynch called Ms. Jones into his office and handed her “The Elements of Style,” a guide to standard English usage by William Strunk Jr. and E.B. White. Mr. Lynch said he thought she could benefit from it.

With its suggestion that her own language skills were lacking, the gift struck Ms. Jones as a microaggression, the people said. A few days later, she quit. Before leaving the headquarters at 1 World Trade in Lower Manhattan, she placed the book on his desk.

Mr. Lynch said he hadn’t meant to insult Ms. Jones, who declined to comment for this article. “I really only had the intention — like every time I’ve given it before — for it to be a helpful resource, as it has been for me,” he said. “I still use it today. I’m really sorry if she interpreted it that way.”

Before Mr. Lynch’s arrival, David Remnick, the editor in chief of The New Yorker, objected to a plan that would have lowered the magazine’s subscription price and raised ad rates. He has brought aboard a diverse crew of journalists, including Jia Tolentino, Hua Hsu and Vinson Cunningham, while adding digital subscriptions.

Three people with knowledge of the company said The New Yorker was likely to surpass Vogue as Condé Nast’s biggest contributor to U.S. profits by the end of 2020. The people added that about 80 percent of The New Yorker’s revenue came from readers, which helped the magazine weather the advertising downturn. The magazine did not cut staff during the recent layoffs.

Credit…Vincent Tullo for The New York Times

On June 4, Ms. Wintour sent an apologetic note to the Vogue staff. “I want to say this especially to the Black members of our team — I can only imagine what these days have been like,” Ms. Wintour wrote.

She added, “I want to say plainly that I know Vogue has not found enough ways to elevate and give space to Black editors, writers, photographers, designers and other creators. We have made mistakes, too, publishing images or stories that have been hurtful or intolerant. I take full responsibility for those mistakes.”

The British-born Ms. Wintour has been credited internally for championing Radhika Jones, one of few top editors of color in the company’s history.

Ms. Jones, the former editorial director of the book department at The Times who took over Vanity Fair from Graydon Carter in 2017, changed the magazine’s identity. The first cover subject she chose, for the April 2018 issue, was the actress and producer Lena Waithe, a black woman photographed by Annie Leibovitz in a plain T-shirt. Later covers featured Michael B. Jordan, Janelle Monae and Lin-Manuel Miranda. Ms. Jones has put out 16 Vanity Fair covers featuring people of color.

When Ms. Jones arrived, she was pilloried by fashion insiders who questioned her style sense. Her choice of legwear — tights with illustrated foxes — drew stares, according to a report in Women’s Wear Daily. Ms. Wintour later showed her support for Ms. Jones at a welcome party by handing out gifts: tights with foxes on them.

Credit…Michael Kovac/Getty Images

At a quarterly meeting of company executives in April 2019, on Mr. Lynch’s second day at Condé Nast, Ms. Jones presented her plan for Vanity Fair’s fall issues, a prime landing spot for fashion and luxury advertisers. (From September to December last year, the Vanity Fair covers featured Kristen Stewart, Lupita Nyong’o, Joaquin Phoenix, and Chrissy Teigen, John Legend and their children.)

Two executives criticized Ms. Jones’s plan, according to three people who were at the meeting and were not authorized to discuss it publicly. In particular, Susan Plagemann, the chief business officer of Condé Nast’s style division, challenged Ms. Jones at length, saying the plan would be difficult to sell to advertisers. To defuse the tension, Ms. Wintour banged her fist on the table, saying, “We need to move on,” according to the three people who were at the meeting.

Ms. Plagemann, who is white, joined the company in 2010 as Vogue’s chief business officer and worked closely with Ms. Wintour; in 2018, she was elevated to her current job. Three people with knowledge of the matter said she was vocal about her negative view of Vanity Fair under its new editor.

She had criticized Ms. Jones’s choices of cover subjects, telling others at the company that the magazine should feature “more people who look like us,” two of the people said. A third person said he had heard her use words expressing a similar sentiment. All the people said they interpreted the phrase and similar remarks as referring to well-off white women who adopt an aesthetic common among the fashion set.

Through a Condé Nast spokesman, Ms. Plagemann denied making those statements and denied expressing a dim view of Ms. Jones’s Vanity Fair.

In the interview on Friday, Mr. Lynch addressed Ms. Jones’s stewardship of the magazine more broadly. “The challenge with her taking that new direction would be alienating some of the traditional Vanity Fair audience,” he said. “I really applaud what she’s done.”

The uprising at Condé Nast was overdue, some staff members said. “We’ve been asking for change for months now,” Sohla El-Waylly, an assistant editor at Bon Appétit, said in an interview.

In the Tuesday meeting with Bon Appétit staff members, Mr. Lynch said he hoped to prove a commitment to diversity with the choice of Mr. Rapoport’s replacement. Later in the call, he suggested that some staff members wanted to hurt Bon Appétit financially to bring about change, a comment that irked some in the meeting.

“It felt infantilizing, as if we were teenagers rebelling,” said Jesse Sparks, an editorial assistant.

Mr. Lynch said in the interview that he had meant to underscore the urgency of the matter. “I wanted to make sure they understood the brand they worked so hard to build was actually being harmed, and I think I even apologized to them in that meeting,” he said.

A Bon Appétit personality, Claire Saffitz, has generated over 200 million views with “Gourmet Makes,” a show in which she makes homemade versions of Twinkies and other junk food. She represents a new kind of Condé Nast, one built on a kind of rough-cut authenticity, but her popularity has drawn attention to the problem of representation.

Credit…Francesco Sapienza for The New York Times

Ms. El-Waylly, who was a regular guest on the show, said her addition to “Gourmet Makes” had been cynically motivated. “They just want me there to play the part to make it look like they have people of color on staff,” she said.

She said she was not paid for her appearances, as her white counterparts were. Condé Nast disputed that and said Ms. El-Waylly’s salary covered her video appearances.

On Wednesday, the company’s head of video, Matt Duckor, stepped down. Several employees had accused him of bias. Many people at the company are rooting for more change.

“What’s crazy is what it took for this stuff to happen,” Ms. Walker-Hartshorn said. “It took George Floyd.”

Source: https://www.nytimes.com/2020/06/13/business/media/conde-nast-racial.html

Crunchbase

The Briefing: RVShare raises over $100M, Google disputes charges, and more

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Here’s what you need to know today in startup and venture news, updated by the Crunchbase News staff throughout the day to keep you in the know.

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RVShare raises over $100M for RV rentals

RVShare, an online marketplace for RV rentals, reportedly raised over $100 million in a financing led by private equity firms KKR and Tritium Partners.

Akron, Ohio-based RVShare has seen sharp growth in demand amid the pandemic, as more would-be travelers seek socially distanced options for hitting the road. Founded in 2013, the company matches RV owners with prospective renters, filtering by location, price and vehicle types.

Previously, RVShare had raised $50 million in known funding, per Crunchbase data, from Tritium Partners. The company is one of several players in the RV rental space, and competes alongside Outdoorsy, a peer-to-peer RV marketplace that has raised $75 million in venture funding.

Funding news

  • BrightFarms closes on $100M: Indoor farming company BrightFarms said it secured more than $100 million in debt and new equity capital to support expansion plans. The Series E round of funding was led by Cox Enterprises, which now owns a majority stake in the company, and includes a follow-on investment from growth equity firm Catalyst Investors.
  • Anyscale inks $40MAnyscale, the Berkeley-based company behind the Ray open source project for building applications, announced $40 million in an oversubscribed Series B funding round. Existing investor NEA led the round and was joined by Andreessen Horowitz, Intel Capital and Foundation Capital. The new funding brings Anyscale’s total funding to more than $60 million.
  • Klar deposits $15M: Mexican fintech Klar closed on $15 million in Series A funding, led by Prosus Ventures, with participation from new investor International Finance Corporation and existing investors Quona Capital, Mouro Capital and Acrew. The round brings total funding raised to approximately $72 million since the company was founded in 2019. The funds are intended to grow Klar’s engineering capabilities in both its Berlin and Mexico hubs.
  • O(1) Labs rakes in $10.9M: O(1) Labs, the team behind the cryptocurrency Mina, announced $10.9 million in a strategic investment round. Co-leading the round are Bixin Ventures and Three Arrows Capital with participation from SNZ, HashKey Capital, Signum Capital, NGC Ventures, Fenbushi Capital and IOSG Ventures.
  • Blustream bags $3M: After-sale customer engagement company Blustream said it raised $3 million in seed funding for product usage data and digital transformation efforts for physical goods companies via the Blustream Product Experience Platform. York IE led the round of funding for the Worcester, Massachusetts-based company with additional support from existing investors.Pillar secures another $1.5M: Pillar, a startup that helps families protect and care for their loved ones, raised $1.5 million in a seed extension to close at $7 million, The round was led by Kleiner Perkins.

Other news

  • Google rejects DOJ antitrust arguments: In the wake of a widely anticipated U.S. Justice Department antitrust suit against Google, the search giant disputed the charges in a statement, maintaining that: “People use Google because they choose to, not because they’re forced to, or because they can’t find alternatives.”
  • Facebook said to test Nextdoor rival: Facebook is reportedly testing a service similar to popular neighborhood-focused social Nextdoor. Called Neighborhoods, the feature reportedly suggests local neighborhood groups to join on Facebook.

Illustration: Dom Guzman

Venture investors and leaders in the fintech space can visualize a future where such startups will move toward again rebundling services.

Root Inc., the parent company of Root Insurance, launched its initial public offering and is looking at a valuation of as much as $6.34 billion.

Clover Health posted rising revenues and a narrower loss in its most recent financial results, published in advance of a planned public market debut.

Crunchbase News’ top picks of the news to stay current in the VC and startup world.

Source: https://news.crunchbase.com/news/briefing-10-21-20/

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Crunchbase

Syte Sees $30M Series C For Product Discovery

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Online shopping has become the norm for most people in 2020, even coaxing traditional retail brands to up their presence to stay competitive. However, now that shoppers can’t see and touch products like they used to, e-commerce discovery has become a crucial element for customer acquisition and retention.

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Enter Syte, an Israel-based company that touts creating the world’s first product discovery platform that utilizes the senses, such as visual, text and voice, and then leverages visual artificial intelligence and next-generation personalization to create individualized and memorable customer experiences, Syte co-founder and CEO Ofer Fryman told Crunchbase News.

To execute on this, the company raised $30 million in Series C funding and an additional $10 million in debt. Viola Ventures led the round and was joined by LG Technology Ventures, La Maison, MizMaa Ventures and Kreos Capital, as well as existing investors Magma, Naver Corporation, Commerce Ventures, Storm Ventures, Axess Ventures, Remagine Media Ventures and KDS Media Fund.

This brings the company’s total fundraising to $71 million since its inception in 2015. That includes a $21.5 million Series B, also led by Viola, in 2019, according to Crunchbase data.

Fryman intends for the new funding to be put to work on product enhancements and geographic expansion. Syte already has an established customer base in Europe, the Middle East and Africa, and will now focus expansion in the U.S. and Asia-Pacific.

Meanwhile, Syte has grown 22 percent quarter over quarter, as well as experienced a 38 percent expansion of its customer base since the beginning of 2020.

“Since we crossed $1 million annual recurring revenue, we have been tripling revenue while also becoming more efficient,” Fryman said. “We can accelerate growth as well as build an amazing technology and solution for a business that needs it right now. We plan to grow further, and even though our SaaS metrics are excellent right now, our goal is to improve them.”

Anshul Agarwal, managing director at LG Technology Ventures, said Syte was an attractive investment due in part to its unique technology.

“They have a deep-learning system and have created a new category, product discovery that will enable online shopping in a way we never had the ability to do before,” Agarwal said. “The product market fit was also unique. We believe in the strong execution by the team and the rapid growth in SaaS. We looked at many different companies, and the SaaS metrics that Syte showed are the strongest we’ve seen in a while.”

Illustration: Li-Anne Dias

Venture investors and leaders in the fintech space can visualize a future where such startups will move toward again rebundling services.

Root Inc., the parent company of Root Insurance, launched its initial public offering and is looking at a valuation of as much as $6.34 billion.

Clover Health posted rising revenues and a narrower loss in its most recent financial results, published in advance of a planned public market debut.

Crunchbase News’ top picks of the news to stay current in the VC and startup world.

Source: https://news.crunchbase.com/news/syte-sees-30m-series-c-for-product-discovery/

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Coinpedia

GenTech Proudly Secures Deal with TruLife Distribution to Drive Growth in SINFIT Digital Sales

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Denver, CO, October 21, 2020 – OTC PR WIRE – GenTech Holdings, Inc. (OTC PINK: GTEH) (“GenTech” or the “Company”), an emerging leader in the high-end Premium Coffee (www.secretjavas.com), Hemp Wellness (www.hakunasupply.com) and Functional Foods (www.SINFITnutrition.com) marketplaces, along with its SINFIT Nutrition brand (“SINFIT”), is excited to announce that the Company has signed a new marketing, sales, and distribution agreement (the “Agreement”) with TruLife Distribution (“TruLife”) (TruLifeDist.com), a leader in marketing, distribution, compliance, e-commerce, and advisory services in the Functional Foods marketplace. The main focus of the new Agreement will be to accelerate the growth of e-commerce sales of SINFIT products, particularly over the Amazon.com platform.

TruLife provides direct access to sales on Amazon, Walmart, Rakuten, Wish, TopHatter, and other top e-commerce platforms, allowing clients to instantly list, ship, and sell products through any major platform, with an experienced team of experts and a proven track record of success in brand placement and digital sales strategies.

“We have already demonstrated a significant & expansive growth curve since taking control of the SINFIT brand in June,” commented Harold Vaca, VP Domestic Sales of SINFIT. “But the vast majority of that growth has been driven by large purchase orders from major distribution partners, both domestic and international. We are also committed to aggressively pursuing end-market consumer direct purchases through our e-commerce footprint, which will provide additional growth and diversify our cash flow ecosystem, making our overall strategy less dependent upon any one source of demand, while driving further growth in total sales.”

Management notes that e-commerce sales represent a sizeable portion of overall retail sales growth worldwide, with more than $3.5 trillion in online sales accounting for over 14% of total pre-pandemic global retail sales. Since the onset of the global health crisis, that ratio has shifted decisively further in favor of e-commerce sales, which is not likely to entirely revert back upon the advent of a viable and widely accessible vaccine.

Vaca added, “We have seen an epic process of market penetration for e-commerce platforms this year as major online retailers have begun to reach a much wider base of consumers – people who haven’t ever shopped much online, but have been forced to during recent months out of personal health concerns. Many of them will almost certainly continue to make use of e-commerce now that they have tried it out, at least to some extent, making e-commerce an essential sales channel for SINFIT products. TruLife has the network, team, experience, and resources to dramatically augment our e-commerce performance.”

SINFIT branded products registered over $2.2 million in global sales in 2019, and are now approved for sale and available for purchase on the Walmart.com and Amazon.com e-commerce platforms as well as in over 2,500 GNC locations in North America and over 10,000 global physical and e-commerce stores across more than 10 countries around the world.

SINFIT products as well-positioned relative to peers and to the long-term macro tailwind defining the functional foods market, which saw sales top $267 billion in February of this year on a global basis, with sales in the US reaching $63 billion, according to Euromonitor 2020. This trend is part of a larger supportive momentum in the general category, with global sales of organic food and drink topping $105 billion in 2018 (Ecovia 2019). U.S. organic food sales also reached $47.9 billion, up 5.9% in 2018 (OTA 2019). In 2019, 77% of U.S. adults used dietary supplements, an all-time high (CRN 2019). U.S. supplement sales are estimated to have reached $49.3 billion in 2019, up 6.2% (NBJ 2019).

About GenTech Holdings, Inc.:

GenTech Holdings, Inc. is a publicly traded company under the symbol GTEH. The Company launched a high-end Coffee Subscription service in early 2020 called Secret Javas, owns a Functional Food company, SINFIT Nutrition and recently closed its acquisition on Products-Groups’ “Hakuna Supply”.

Forward-Looking Statements
This press release may contain forward-looking statements, including information about management’s view of GenTech, Inc.’s future expectations, plans and prospects. In particular, when used in the preceding discussion, the words “believes,” “expects,” “intends,” “plans,” “anticipates,” or “may,” and similar conditional expressions are intended to identify forward-looking statements. Any statements made in this news release other than those of historical fact, about an action, event or development, are forward-looking statements. These statements involve known and unknown risks, uncertainties and other factors, which may cause the results of GenTech, its subsidiaries and concepts to be materially different than those expressed or implied in such statements. Unknown or unpredictable factors also could have material adverse effects on GenTech’s future results. The forward-looking statements included in this press release are made only as of the date hereof. GenTech cannot guarantee future results, levels of activity, performance or achievements. Accordingly, you should not place undue reliance on these forward-looking statements. Finally, GenTech undertakes no obligation to update these statements after the date of this release, except as required by law, and also takes no obligation to update or correct information prepared by third parties that are not paid for by GenTech.

Corporate Contact:
invest@gentech.group

www.gentechholdings.com

Source: https://otcprwire.com/gentech-proudly-secures-deal-with-trulife-distribution-to-drive-growth-in-sinfit-digital-sales/

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