Connect with us

Start Ups

Beauty brand MyGlamm acquires women-centric platform POPxo

Published

on

Online beauty brand MyGlamm has acquired Priyanka Gill owned women-centric content and influencer platform POPxo, without disclosing any terms of the transaction. Priyanka, the founder of POPxo, will be joining MyGlamm’s board as the co-founder of the combined entity.

As reported by ET (1), the deal would be helping MyGlamm reduce its customer acquisition costs, which has been one of the highest cost centers for a direct-to-consumer brand. The deal would also help the brand reach out to a wider audience that will help it launch new products more effectively.

POPxo has over 50 million women users across their platforms, with nearly 99% of users being organic. 

Darpan Sanghvi, the founder of MyGlamm, said that to date, the company has only engaged with users acquiring them, but POPxo would help them widen the top of the funnel. 

POPxo would continue to run as an independent platform with an expected Rs 4 crore revenue per month.

POPxo- a leader of women-centric content platforms

MyGlamm’s revenue saw a rise in February at Rs 12 crore, but sadly, due to the COVID-19 pandemic, its offline sales, which constitute about 40%, got drastically effected in the last few months.  

MyGlamm competes with brands like Sugar Cosmetics, Nykaa, Faces Canada, etc.

With the acquisition, MyGlamm aims to scale to Rs 34 crore a month by December 2021.

Beauty and personal care startups have attracted major investments since the last year, with most players showing a 3-5% growth in revenue through online-led distribution.

POPxo will discontinue its private brands, and the combined entity will work jointly to launch newer brands. 

Founded in 2015, POPxo has raised over $10 million from investors like Kalaari, Chiratae, and Neoplux.


A passionate writer with bachelor’s in the field of English & Journalism. Other than being a bibliophile, some of her hobbies are travelling, photography and poetry.

Source: https://timesnext.com/beauty-brand-myglamm-acquires-popxo/

Start Ups

Here’s Which VC-Backed Companies Are Going Public Via SPAC This Year (So Far)

Published

on

229 Shares

Going public through a special-purpose acquisition company is officially mainstream. Special-purpose acquisition companies, once looked down upon by Wall Street-types as a less respectable way to go public, have been forming and going public at an unprecedented pace this year.

Subscribe to the Crunchbase Daily

While last year was considered a record year for SPACs, this year has already shattered 2020’s record.

And in the past year, the companies going public are no longer the under-the-radar types. Well-capitalized companies with brand-name recognition, like genetic testing company 23AndMe and online real estate buying platform Opendoor, are among the companies that have gone public or announced their intent to go public through a SPAC.

Here at Crunchbase News, we keep a running list of the companies that have gone public this year. In the past, it’s mostly been comprised of IPOs, although there have been direct listings here and there. This year, we began keeping track of SPACs that completed their mergers and started trading.

With SPACs forming and going public every day, it seemed wise to keep track of the companies that had announced they agreed to go public via SPAC as well: The announced SPAC targets, if you will. So, we scoured news reports and press releases and compiled a list of the venture-backed companies that have announced they will be merging with a SPAC. Companies that have been reported to be in talks to go public via SPAC aren’t included in the list.

This article was last updated on September 17, 2021.

SoFi
Date Announced: Jan. 7, 2021
Acquirer: Social Capital Hedosophia Corp. V
Valuation: $8.65 billion, per CNBC
Some Investors: Third Point Ventures, SoftBank

Achronix Semiconductor
Date Announced: Jan. 9, 2021
Acquirer: Ace Convergence Acquisition
Valuation: $2 billion, per Bloomberg
Some Investors: Battery Ventures, New Science Ventures

Bakkt
Date Announced: Jan. 11, 2021
Acquirer: VPC Impact Acquisition Holdings
Valuation: $2.1 billion
Some Investors: Goldfinch Partners, M12

Proterra
Date Announced: Jan. 12, 2021
Acquirer: ArcLight Clean Transition Corp.
Valuation: $1.6 billion
Some Investors: Tao Capital Partners, Daimler

Talkspace
Date Announced: Jan. 13, 2021
Acquirer: Hudson Executive Investment Corp.
Valuation: $1.4 billion
Some Investors: Spark Capital, Norwest Venture Partners

LiveVox
Date Announced: Jan. 14, 2021
Acquirer: Crescent Acquisition Corp.
Valuation: $840 million
Some Investors: Lunsford Capital, R&D Bauer Ventures

EVGo
Date Announced: Jan. 22, 2021
Acquirer: Climate Change Crisis Real Impact I Acquisition Corp.
Valuation: $2.6 billion
Some Investors: Vision Ridge Capital Partners

Latch
Date Announced: Jan. 25, 2021
Acquirer: TS Innovations Acquisitions Corp.
Valuation: $1.56 billion
Some Investors: Lux Capital, RRE Ventures

Taboola
Date Announced: Jan. 25, 2021
Acquirer: ION Acquisition Corp.
Valuation: $2.6 billion
Some Investors: Evergreen Venture Partners, Pitango Venture Capital

Nerdy
Date Announced: Jan. 29, 2021
Acquirer: TPG Pace Tech Opportunities
Valuation: $1.7 billion
Some Investors: TCV, Learn Capital

Playstudios
Date Announced: Feb. 1, 2021
Acquirer: Acies Acquisition Corp.
Valuation: $1.1 billion
Some Investors: Jafco Ventures

Otonomo
Date Announced: Feb. 1, 2021
Acquirer: Software Acquisition Group Inc. II
Valuation: $1.4 billion
Some Investors: Bessemer Venture Partners, SK Holdings

Microvast
Date Announced: Feb. 1, 2021
Acquirer: Tuscan Holdings Corp.
Valuation: $3 billion
Some Investors: IFC Venture Capital Group, CITIC Securities

Wheels Up
Date Announced: Feb. 1, 2021
Acquirer: Aspirational Consumer Lifestyle Corp.
Valuation: $2.1 billion
Some Investors: Blue Ivy Ventures, Alpaca VC

Astra
Date Announced: Feb. 2, 2021
Acquirer: Holicity Inc.
Valuation: $2.1 billion
Some Investors:  ACME Capital, Airbus Ventures

Payoneer
Date Announced: Feb. 3, 2021
Acquirer: FTAC Olympus Acquisition Corp.
Valuation: $3.3 billion
Some Investors: TCV, Viola Ventures

Vintage Wine Estates
Date Announced: Feb. 4, 2021
Acquirer: Bespoke Capital Acquisition Corp.
Valuation: $690 million
Some Investors: AGR Partners

23AndMe
Date Announced: Feb. 4, 2021
Acquirer: VG Acquisition Corp.
Valuation: $3.5 billion
Some Investors: Sequoia Capital, NextView Capital

Hyzon Motors
Date Announced: Feb. 9, 2021
Acquirer: Decarbonization Plus Acquisition Corp.
Valuation: $2.1 billion
Some Investors: Total Carbon Neutrality Ventures

Matterport
Date Announced: Feb. 11, 2021
Acquirer: Gores Holdings VI
Valuation: $2.9 billion
Some Investors: DCM Ventures, Lux Capital

Rover
Date Announced: Feb. 11, 2021
Acquirer: Nebula Caravel Acquisition Corp.
Valuation: $1.35 billion
Some Investors: Menlo Ventures, Spark Capital

Sharecare
Date Announced: Feb. 12, 2021
Acquirer: Falcon Capital Acquisition Corp.
Valuation: $3.9 billion
Some Investors: Heritage Group, Aflac Corporate Ventures

Owlet Baby Care
Date Announced:  Feb. 16, 2021
Acquirer: Sandbridge Acquisition Corp.
Valuation: $1 billion
Some Investors: Eclipse Ventures, Formation 8

AEye
Date Announced: Feb. 17, 2021
Acquirer: CF Finance Acquisition Corp.
Valuation: $2 billion
Some Investors: BootstrapLabs, Taiwania Capital

Xos
Date Announced: Feb. 22, 2021
Acquirer: NextGen Acquisition Corp.
Valuation: $2 billion
Some Investors: Build Capital Group, Proeza Ventures 

Enovix
Date Announced: Feb. 22, 2021
Acquirer: Rodgers Silicon Valley Acquisition Corp
Valuation: $1.1 billion
Some Investors: T.J. Rodgers, Emmanuel Hernandez

Lucid Motors
Date Announced: Feb. 22, 2021
Acquirer: Churchill Capital Corp. IV
Valuation: $11.75 billion
Some Investors: Venrock, Saudi Arabia’s Public Investment Fund

Berkshire Grey
Date Announced: Feb. 24, 2021
Acquirer: Revolution Acceleration Acquisition Corp.
Valuation: $2.7 billion
Some Investors: Khosla Ventures, SoftBank

Joby Aviation
Date Announced: Feb. 24, 2021
Acquirer: Reinvent Technology Partners
Valuation: $6.6 billion
Some Investors: Intel Capital, Capricorn Investment Group

Rocket Lab
Date Announced: March 1, 2021
Acquirer: Vector Acquisition Corp.
Valuation: $4.1 billion
Some Investors: Khosla Ventures, DCVC

QOMPLX
Date Announced: March 1, 2021
Acquirer: Tailwind Acquisition Corp.
Valuation: $1.4 billion
Some Investors: Exponential Partners, Motive Partners

Doma
Date Announced: March 2, 2021
Acquirer: Capital Investment Corp. V
Valuation: $3 billion
Some Investors: Foundation Capital, Greenspring Associates 

Hippo Insurance
Date Announced: March 4, 2021
Acquirer: Reinvent Technology Partners Z
Valuation: $5 billion
Some Investors: Comcast Ventures, Felicis Ventures1

IonQ
Date Announced: March 8, 2021
Acquirer: dMY Technology Group Inc. III
Valuation: $2 billion
Some Investors: GV, New Enterprise Associates 

Evolv Technology
Date Announced: March 8, 2021
Acquirer: NewHold Investment Corp.
Valuation: $1.25 billion
Some Investors: Stanley Ventures, Lux Capital

Ambulnz (dba DocGo)
Date Announced: March 9, 2021
Acquirer: Motion Acquisition Corp.
Valuation: $1.1 billion
Some Investors: N/A.

IronNet
Date Announced: March 15, 2021
Acquirer: LGL Systems Acquisition Corp.
Valuation: $1.2 billion
Some Investors: ForgePoint Capital, C5 Capital

Offerpad
Date Announced: March 18, 2021
Acquirer: Supernova Partners Acquisition Co.
Valuation: $3 billion
Some Investors: LL Funds

Rockley Photonics
Date Announced: March 19, 2021
Acquirer: SC Health Corp.
Valuation: $1.2 billion
Some Investors: Kreos Capital, Morningside Venture Investments

IronSource 
Date Announced: March 21, 2021
Acquirer: Thoma Bravo Advantage
Valuation: $11.1 billion
Some Investors: Viola Ventures, Access Industries

Velo3D
Date Announced: March 23, 2021
Acquirer: JAWS Spitfire Acquisition Corp.
Valuation: $1.6 billion
Some Investors: Khosla Ventures, Piva Capital

WeWork
Date Announced: March 26, 2021
Acquirer: BowX Acquisition Corp.
Valuation: $9 billion
Some Investors: SoftBank Vision Fund, Hony Capital

SomaLogic
Date Announced: March 29, 2021
Acquirer: CM Life Sciences II
Valuation: $1.23 billion
Some Investors: Foresite Capital, Fiscus Ventures

Cazoo
Date Announced: March 29, 2021
Acquirer: AJAX I
Valuation: $7 billion
Some Investors: Stride.VC, General Catalyst

Lilium
Date Announced: March 30, 2021
Acquirer: Qell Acquisition Corp.
Valuation: $3.3 billion
Some Investors: Tencent Holdings, Freigeist Capital

BetterTherapeutics
Date Announced: April 7, 2021
Acquirer: Mountain Crest Acquisition Corp. II
Valuation: $187 million
Some Investors: Not available.

Tango Therapeutics
Date Announced: April 14, 2021
Acquirer: BCTG Acquisition Corp.
Valuation: $353 million
Some Investors: Casdin Capital, Boxer Capital

Vicarious Surgical
Date Announced: April 15
Acquirer: D8 Holdings Corp.
Valuation: $1.1 billion
Some Investors: Khosla Ventures, Gates Frontier Fund

SmartRent
Date Announced: April 22, 2021
Acquirer: Fifth Wall Acquisition Corp. I
Valuation: $2.2 billion
Some Investors: Spark Capital, Fifth Wall 

Enjoy Technology
Date Announced: April 28, 2021
Acquirer: Marquee Raine Acquisition Corp.
Valuation: $1.2 billion
Some Investors: L Catterton, Highland Capital Partners

ShapeWays
Date Announced: April 28, 2021
Acquirer: Galileo Acquisition Corp.
Valuation: $410 million
Some Investors: Lux Capital, Andreessen Horowitz

Sonder
Date Announced: April 30, 2021
Acquirer: Gores Metropoulos II Inc.
Valuation: $2.2 billion
Some Investors: Greylock, Spark Capital

Jasper Therapeutics
Date Announced: May 6, 2021
Acquirer: Amplitude Healthcare Acquisition Corp.
Valuation: N/A
Some Investors: Roche Venture Fund, Qiming Venture Partners USA

Science 37
Date Announced: May 7, 2021
Acquirer: LifeSci Acquisition II Corp.
Valuation: $1.05 billion
Some Investors: Lux Capital, Redmile Group

Benson Hill
Date Announced: May 10, 2021
Acquirer: Star Peak Corp. II
Valuation: $2 billion
Some Investors: GV, Lewis & Clark Ventures

Plus
Date Announced: May 10, 2021
Acquirer: Hennessy Capital Acquisition Corp.
Valuation: $3.3 billion
Some Investors: Sequoia Capital China, ClearVUE Partners

Better.com
Date Announced: May 11, 2021
Acquirer: Aurora Acquisition Corp.
Valuation: $7.7 billion
Some Investors: SoftBank, L Catterton

Ginkgo Bioworks
Date Announced: May 11, 2021
Acquirer: Soaring Eagle Acquisition Corp.
Valuation: $17.5 billion
Some Investors: DCVC, Viking Global Investors

Bird
Date Announced: May 12, 2021
Acquirer: Switchback II
Valuation: $2.3 billion
Some Investors: Sequoia Capital, Craft Ventures

Bright Machines
Date Announced: May 17, 2021
Acquirer: SCVX
Valuation: $1.1 billion
Some Investors: Eclipse Ventures, Lux Capital

Jam City
Date Announced: May 20, 2021
Acquirer: DPCM Capital
Valuation: $1.1 billion
Some Investors: Austin Ventures, Netmarble

Tritium
Date Announced: May 26, 2021
Acquirer: Soaring Eagle Acquisition Corp.
Valuation: $1.2 billion
Some Investors: Brian Flannery, Gilbarco Veeder Root

Acorns
Date Announced: May 27, 2021
Acquirer: Pioneer Merger Corp.
Valuation: $2.2 billion
Some Investors: Greycroft, PayPal Ventures

Wejo
Date Announced: May 28, 2021
Acquirer: Virtuoso Acquisition Corp.
Valuation: $1.1 billion
Some Investors: General Motors, DIP Capital

Babylon Health
Date Announced: June 3, 2021
Acquirer: Alkuri Global Acquisition Corp.
Valuation: $3.6 billion
Some Investors: Hoxton Ventures, Saudi Arabia’s Public Investment Fund

Dave
Date Announced: June 7, 2021
Acquirer: VPC Impact Acquisition Holdings III
Valuation: $4 billion
Some Investors: Norwest Venture Partners, Victory Park Capital

NextNav
Date Announced: June 10, 2021
Acquirer: Spartacus Acquisition Corp.
Valuation: $1.2 billion
Some Investors: New Enterprise Associates, Fortress Investment Group

Vertical Aerospace
Date Announced: June 10
Acquirer: Broadstone Acquisition Corp.
Valuation: $2.2 billion
Some Investors: N/A

Boxed
Date Announced: June 14
Acquirer: Seven Oaks Acquisition Corp.
Valuation: $887 million
Some Investors: Greycroft, DST Global

Pear Therapeutics
Date Announced: June 22, 2021
Acquirer: Thimble Point Acquisition
Valuation: $1.6 billion
Some Investors: Temasek Holdings, SoftBank Vision Fund

Quanergy Systems
Date Announced: June 22, 2021
Acquirer: CITIC Capital Acquisition Corp.
Valuation: $1.1 billion
Some Investors: Motus Ventures, Rising Tide

Embark
Date Announced: June 23, 2021
Acquirer: Northern Genesis Acquisition Corp. II
Valuation: $5.2 billion
Some Investors: Tiger Global Management, Sequoia Capital

BuzzFeed
Date Announced: June 24, 2021
Acquirer: 890 Fifth Avenue Partners, Inc.
Valuation: $1.5 billion
Some Investors: Andreessen Horowitz, New Enterprise Associates

NextDoor
Date Announced: Jul 6, 2021
Acquirer: Khosla Ventures Acquisition Co. II
Valuation: $4.3 billion
Some Investors: Benchmark, Kleiner Perkins

Satellogic
Date Announced: July 6, 2021
Acquirer: CF Acquisition Corp. V
Valuation: $1.1 billion
Some Investors: Tencent, Valor Capital Group

Circle
Date Announced: July 8, 2021
Acquirer: Concord Acquisition Corp.
Valuation: $4.5 billion
Some Investors: IDG Capital, Breyer Capital

Planet
Date Announced: July 7, 2021
Acquirer: dMY Technology Group Inc. IV
Valuation: $2.8 billion
Some Investors: DCVC, Prelude Ventures

Aurora
Date Announced: July 15, 2021
Acquirer: Reinvent Technology Partners
Valuation: $11 billion
Some Investors: Sequoia Capital, Greylock

HeartFlow
Date Announced: July 15, 2021
Acquirer: Longview Acquisition Corp. II
Valuation: $2.4 billion
Some Investors: Capricorn Investment Group, Panorama Point Partners

ServiceMax
Date Announced: July 15, 2021
Acquirer: Pathfinder Acquisition Corp.
Valuation: $1.4 billion
Some Investors: Emergence2, Silver Lake

Kin Insurance
Date Announced:  July 19, 2021
Acquirer: Omnichannel Acquisition Corp.
Valuation: $1.03 billion
Some Investors: August Capital, Commerce Ventures

AdTheorent
Date Announced: July 27, 2021
Acquirer: MCAP Acquisition Corp.
Valuation: $775 million
Some Investors: Verizon Ventures3, H.I.G. Growth Partners

SWVL Technologies
Date Announced: July 28, 2021
Acquirer: Queen’s Gambit Growth Capital
Valuation: $1.5 billion
Some Investors: Careem, BECO Capital

Vacasa
Date Announced: July 29, 2021
Acquirer: TPG Pace Solutions
Valuation: $4.5 billion
Some Investors: Riverwood Capital, Silver Lake

FinAccel
Date Announced: Aug. 2, 2021
Acquirer: VPC Impact Acquisition Holdings II
Valuation: $2.5 billion
Some Investors: Jungle Ventures, Openspace Ventures

Leafly
Date Announced: Aug. 9, 2021
Acquirer: Merida Merger Corp.
Valuation: $532 million
Some Investors: Growcore Investments

Greenlight Biosciences
Date Announced: Aug. 10, 2021
Acquirer: Environmental Impact Acquisition Corp.
Valuation: $1.5 billion
Some Investors: Khosla Ventures, Baird Capital

Aspiration Partners
Date Announced: Aug. 18, 2021
Acquirer: InterPrivateIII Financial Partners
Valuation: $2.3 billion
Some Investors: Social Impact Finance, Orlando Bloom

Forge Global
Date Announced: Sept. 13, 2021
Acquirer: Motive Capital Corp.
Valuation: $2 billion
Some Investors: Peter Thiel, Draper Associates

Pagaya
Date Announced: Sept. 15, 2021
Acquirer: EJF Acquisition Corp.
Valuation: $8.5 billion
Some Investors: Viola Ventures, Citi

Gogoro
Date Announced: Sept. 16, 2021
Acquirer: Poema Global Holdings Corp.
Valuation: $2.35 billion
Some Investors: Temasek Holdings, Panasonic

Prenetics
Date Announced: Sept. 15, 2021
Acquirer: Artisan Acquisition Corp.
Valuation: $1.25 billion
Some Investors: Coent Venture Partners, Beyond Ventures


Illustration: Dom Guzman

Stay up to date with recent funding rounds, acquisitions, and more with the Crunchbase Daily.

PlatoAi. Web3 Reimagined. Data Intelligence Amplified.
Click here to access.

Source: https://news.crunchbase.com/news/heres-which-vc-backed-companies-are-going-public-via-spac-this-year-so-far/

Continue Reading

Start Ups

The Briefing: GitLab Files To Go Public, Ketch Raises $20M, And More

Published

on

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.

Subscribe to the Crunchbase Daily

GitLab files to go public

DevOps platform GitLab filed an S-1 registration statement with the U.S. Securities and Exchange Commission Friday, revealing revenue growth of 69 percent year over year.

The company’s revenue came out to $108 million for the six-month period that ended on July 31, 2021, up from $63.9 million during the same period in 2020. GitLab’s net losses grew from $43.5 million during the same six-month period in 2020, to $69 million in the six-month period that ended July 31, 2021.

Ahead of the trend in terms of remote work, its team has been working remotely since the company’s inception in 2011. GitLab now has 1,350 employees in more than 65 countries.

August Capital, GV, Khosla Ventures and ICONIQ Capital are among the largest shareholders in the company. GitLab raised at least $415 million in funding as a private company, according to Crunchbase data.

Goldman Sachs and J.P. Morgan are among the underwriters for the IPO. The company applied to list on the Nasdaq under the ticker GTLB.

— Sophia Kunthara

Ketch raises $20M for privacy tools

San Francisco-based Ketch, a startup offering a data control platform for privacy, reportedly raised $20 million as part of its Series A in a financing led by Acrew Capital. The company offers tools around regulation management, consent management and data subject rights.

Sharelock raises $4.7M

Paris-based Sharelock, a subscription service for bicycle users, raised 4 million euros ($4.7 million) in a seed funding round backed by Breega and Banque des Territoires. One of the startup’s core focus areas is providing secure parking for bikes when not in use.

Information technology

Paretos picks up $4M: Paretos, a German startup that developed an artificial intelligence-based data science platform for companies to create fully automated forecasting models, analyze complex data and make strategic decisions, raised $4 million in a seed funding round led by LEA Partners.

— Joanna Glasner

Illustration: Dom Guzman

Stay up to date with recent funding rounds, acquisitions, and more with the Crunchbase Daily.

PlatoAi. Web3 Reimagined. Data Intelligence Amplified.
Click here to access.

Source: https://news.crunchbase.com/news/briefing-9-17-21/

Continue Reading

Start Ups

Regulators Care About Your Startup Pitch Deck Too

Published

on

Sometimes weeks after a headline exits our news feeds, a story still resonates. That’s been the case for me and a fraud suit the Securities and Exchange Commission filed in late August against Manish Lachwani, former CEO of once high-flying software startup HeadSpin.

Subscribe to the Crunchbase Daily

In its six-year history, Palo Alto-based HeadSpin raised around $116 million for its platform, which helps companies optimize customer digital experience across mobile and web. It did so the way most companies do–with fundraising pitches talking up sharp growth and big-name clients

Trouble is, apparently neither the numbers nor the client list were accurate. The SEC’s complaint charges that Lachwani used “inflated valuation and financial numbers to deceive investors into pouring approximately $80 million into the company between 2018 and 2020.”

Fraud suits crop up frequently, and here it’s not the number or the motive that I find most interesting. What sticks out instead, is where much of the alleged deception cropped up: In the startup’s pitch deck.

That’s because the pitch deck is arguably the most hype-driven thing in the startup universe. It’s where entrepreneurs put their hockey-stick projections of future growth, brag about the trillion-dollar markets they’re poised to disrupt, and play up the famous brands that have paid even a paltry sum for their products.

As someone who has spent a couple decades regularly listening in on startup pitches and pitch events, my observation is that some hype is fairly standard. Projections based on the most optimistic possible scenario are pretty much expected.

But HeadSpin delivers an important lesson: The SEC also cares about what’s in your pitch deck. While a bit of hyperbole about how your future valuation will exceed Apple’s may be acceptable, phony numbers are not.

Pitch deck lies

In HeadSpin’s case, the agency’s complaint features a number of references to pitch deck malfeasance, including the following:

  • “The 2018 Pitch Deck that Lachwani shared with Series B investors falsely asserted that HeadSpin had experienced ‘No Customer Loss and Triple Digit Growth.’ In reality, HeadSpin had lost customers that decided to stop using HeadSpin’s services.”
  • “The 2018 Pitch Deck also included logos for at least 50 major companies, a number of which were not active HeadSpin customers.”
  • “Lachwani also provided a 2018 PitchDeck to Series B investors that, among other things, listed falsely inflated ‘revenue commitment’ amounts and growth percentages for specific big-name customers”
  • “The deck included the logo of a highly successful Silicon Valley-based computer and cellphone manufacturer even though (the customer’s) sole purchase expired more than a year earlier and was not renewed.”

The pitch deck statements fit into a broader pattern of deception, per the SEC, which included  creating fake invoices, altering real invoices, and inflating HeadSpin’s annual recurring revenue by falsely increasing the values of customer deals.

It didn’t work out well. Lachwani’s fraud unraveled in the spring of 2020, following an internal investigation, per the SEC. Subsequently, he was forced to resign as CEO, and HeadSpin revised its valuation down from the $1.1 billion claimed during the Series C round to approximately $300 million.

What sophisticated investors missed

Obviously, this was not the outcome investors wanted. But while VCs are sophisticated investors expected to do their own diligence to avoid falling for excessively rosy projections, not all lies are easy to detect.

The sophisticated investor moniker would certainly apply to ICONIQ Capital, which led HeadSpin’s Series B and co-led its Series C. The San Francisco-based investment firm, with approximately $67 billion in assets under management, has a client list that includes Mark Zuckerberg, Sheryl Sandberg, Jack Dorsey and Jeff Weiner.

HeadSpin’s other backers include a long list of individual investors, along with Tiger Global Management, Google’s GV, Dell Technologies Capital and others. Overall, these are investors who are expected to know their way around a pitch deck.

The takeaway from investors from the SEC’s action around HeadSpin seems to be this: If you fell for over-optimistic projections, that’s on you. But if founders deceived you about the past and current state of their business, that’s an area where regulators might also step in.

For startups in fundraising mode, meanwhile, flattering pitch deck presentations are probably still OK: Feel free to play up the size of your target market and talk a lot about your highest profile customers, investors and advisers. But keep the internal performance numbers real. Exaggerated ARRs can have real-world consequences.

Illustration: Dom Guzman

Stay up to date with recent funding rounds, acquisitions, and more with the Crunchbase Daily.

PlatoAi. Web3 Reimagined. Data Intelligence Amplified.
Click here to access.

Source: https://news.crunchbase.com/news/regulators-care-about-your-startup-pitch-deck-too/

Continue Reading

Start Ups

Strategic Considerations When Outsourcing Your Software Development

Published

on

By Gaurav Bhasin

Engineering talent exists everywhere in the world, not just Silicon Valley, and I have worked with several global companies including some based in Silicon Valley that have successfully built and sold products leveraging an outsourced software development team.

Subscribe to the Crunchbase Daily

I also expect the use of outsourced software development teams to grow with the rise of remote work due to the pandemic and companies rethinking the traditional work model of being in the same physical location.

Below, I discuss some implications for entrepreneurs to consider when using an outsourced software development team.

There are clear benefits in utilizing outsourced development teams such as:

Capital-efficient model

Hiring software professionals in cities like Austin, New York, San Francisco, etc. can be expensive and tough to retain given their options from other employers who are competing for the same talent.

Companies can leverage talented software professionals in geographies where costs are lower and skill sets are equivalent. The cost savings here can be used to grow in a capital-efficient manner. I have worked with several clients who have successfully used an outsourced software team and exited to Fortune 100 buyers and Private Equity firms.

Gaurav Bhasin, managing director at Allied Advisers

A recent buyer of one of our clients noted the costs of hiring one local software developer was equivalent to having five-plus developers of similar skill set in our client’s outsourced software development team which made the transaction attractive.

Follow-the-sun model

With software teams in different time zones, work can be done around the clock, allowing for acceleration in product development.

Companies can build a highly competent, low-cost engineering team that can work on “following the sun” on an agile, rapid turnaround schedule.

Companies should take care to develop the tools (Slack, Jira, Collaboration, and video-conferencing software etc.) and procedures needed to stay aligned given the geographic, linguistic and time zone dispersion.

Focus on core competency

Some areas of software development are core to the business; these aspects can be done at the headquarters while lower-end tasks can be outsourced providing operational leverage.

Keeping your future financing or exit in mind is key when using outsourced software development.

…..

Four main considerations:

Transfer of outsourced software development personnel upon change of control: Often it is easier to go via a third-party agency for hiring personnel vs. setting up a captive team in another country. Upon change of control due to a financing or exit event, the investor or buyer will likely want the company to have a direct relationship as an employer or contractor vs. working with a third-party agency.

Tip No. 1: Care should be taken to ensure that the outsourced software development personnel can contractually be transferred to the company from the third-party agency.

Ownership of IP: Buyers want to ensure the companies they acquire own their IP completely.

Tip No. 2: It is important to ensure the outsourced software development professionals involved in creating IP sign an assignment of inventions agreement else this will cause a transaction to crater.

Geographic preference of buyers and investors: Our firm was involved in a situation where a well-known buyer wanted to acquire a client of ours. However, the location of the majority of the outsourced software development teams caused the buyers to pause, given their focus on keeping their workforce in certain geographies only.

Luckily, we were able to get another buyer interested who preferred the location given it had substantial presence in the region. In addition, investors–depending on their fund strategy–invest in companies incorporated in certain geographies, and may be generally OK if some of the outsourced software development is done correctly with some of the considerations noted.

Tip No. 3: We would also suggest avoiding having outsourced development teams in multiple geographies and focus on a particular location where there is a pool of software talent to source from. This is the practical approach for most companies unless they are large.

Developing Culture: An organic team tends to enjoy companywide social activities that create a company culture or “DNA.” This is often not the case with outsourced development teams who are usually left out, which may impact their potential transition into the company upon exit.

Tip No. 4: Consider including the outsourced development teams in as many team-building events (virtual or in person) and sharing successes and milestones to give them a sense of ownership and belonging. This will go a long way in building rapport and higher quality engagement, and help in transitioning the outsourced development team to the buyer upon exit.

In summary

Depending on the type of company buyers are looking to acquire, outsourced software development teams may have an impact on valuation.

If a company is being acquired for a premium revenue multiple as they are further along their growth journey, buyers might be less concerned with outsourced engineering teams. However, if a company is being acquired for its engineering talent and technology (ex. Google’s purchase of artificial intelligence start-up DeepMind for more than $500 million, with high-quality engineering talent being a primary deal driver), outsourcing the majority of the engineering team can impact valuation and bring additional scrutiny by buyers.

Outsourced software development can be beneficial to companies if done correctly. It is important to keep risks in mind which can impact a financing or exit.


Gaurav Bhasin is managing director with Allied Advisers, a global technology-focused boutique advisory firm focused on investment banking for entrepreneurs and investors. The Silicon Valley-based firm, with a presence in Los Angeles, Israel and India, serves entrepreneurs and investors of technology growth companies on strategic advisory including M&A and capital raises.

Illustration: Dom Guzman

Stay up to date with recent funding rounds, acquisitions, and more with the Crunchbase Daily.

PlatoAi. Web3 Reimagined. Data Intelligence Amplified.
Click here to access.

Source: https://news.crunchbase.com/news/strategic-considerations-when-outsourcing-your-software-development/

Continue Reading
Esports3 days ago

NBA 2K22 The Game Quest Explained

Esports4 days ago

Rocket League Championship Series (RLCS) is expanding to more regions, features new format and $6 million prize pool for 2021-22 season

Esports3 days ago

Shiny Zacian and Zamazenta promotion announced for Pokémon Brilliant Diamond, Shining Pearl preorders in South Korea

Esports3 days ago

Riot to launch new client that houses all of the company’s desktop titles in one hub, rollout begins next week

Esports5 days ago

The VCS hasn’t given up on Worlds 2021, continues to work with Riot to find a solution to travel restrictions, reports say

Esports5 days ago

New 2021 Tin of Ancient Battles content confirms Yu-Gi-Oh! TCG is finally getting Crossout Designator, lots of good reprints

Esports4 days ago

Rocket League Championship Series (RLCS) is expanding to more regions, features new format and $6 million prize pool for 2021-22 season

Esports2 days ago

How to download Deltarune Chapter 2

Esports4 days ago

Rocket League Championship Series (RLCS) is expanding to more regions, features new format and $6 million prize pool for 2021-22 season

Esports5 days ago

New 2021 Tin of Ancient Battles content confirms Yu-Gi-Oh! TCG is finally getting Crossout Designator, lots of good reprints

Cyber Security4 days ago

How To Choose The Right Sales Training Software For Your Team?

Energy4 days ago

Kontrol Technologies to Participate in Virtual Energy Conference on September 21st, 2021

Energy4 days ago

Technipaq Partners with DuPont™ Tyvek® and Freepoint Eco-Systems to Reduce and Recycle Medical Packaging Plastic Waste

Esports2 days ago

How to transfer Deltarune chapter one save files to chapter 2

Esports1 day ago

NBA 2K22 Limitless Spot-Up and Chef Badges Explained

Energy4 days ago

Teamsters Denounce Billionaire John Catsimatidis For Firing Striking Workers

Esports4 days ago

Fastest way to get Relic Resistance Weapons in Final Fantasy XIV | Haunting and Vexatious Memories of the Dying

Esports3 days ago

Fastest way to get Relic Resistance Weapons in Final Fantasy XIV | Spare Parts, Tell Me a Story, A Fond Memory

Energy4 days ago

Momentum Manufacturing Group’s Strength Earns Third Straight Vermont Business Growth Award

Esports3 days ago

New Wild Area Event begins in Pokémon Sword and Shield starring shiny Solrock and Lunatone

Trending

Copyright © 2020 Plato Technologies Inc.