Tuesday, December 10, 2019
OPPO May Open an R&D Centre in Bengaluru
EU Antitrust Regulators Mull Tougher Line Against Tech Giants
Facebook Rebuffs US Request to Abandon Plans to Encrypt Chats
EaseMyTrip plans to raise Rs 700 crore from public issue
Google India to face trial in pre-2009 defamation case
Retailers feeling the heat opt for advancing sales
Personal Data Protection Bill: Exemptions for government agencies worry experts
ByteDance has been testing Resso, a new music app, in India and Indonesia, but is yet to seal rights deals with the world's three largest music companies (Bloomberg)
ByteDance has been testing Resso, a new music app, in India and Indonesia, but is yet to seal rights deals with the world's three largest music companies — - India and Indonesia are first to sample ByteDance's latest — Company looking to become less dependent on advertising income
Xiaomi, MAIT want MEIS export sops back
Hike Sticker Chat App Now Has Over 2 Million Weekly Active Users
DOJ arrests 3 men behind the BitClub Network cryptocurrency mining pool, says it was a Ponzi scheme which defrauded investors of $722M since 2014 (Kollen Post/Cointelegraph)
DOJ arrests 3 men behind the BitClub Network cryptocurrency mining pool, says it was a Ponzi scheme which defrauded investors of $722M since 2014 — United States authorities in New Jersey have announced the arrest of three men who are accused of defrauding investors of over $722 million …
Carsome raises $50M for its used-car sales platform in Southeast Asia
Carsome, a Malaysia-based marketplace for trading users cars, has closed a new $50 million financing round to fend off its rivals and grow its business in Southeast Asian markets.
The new financing round, dubbed Series C, was funded by MUFG Innovation Partners (MUIP), the corporate venture capital arm and a wholly-owned subsidiary of Mitsubishi UFJ Financial Group (MUFG), Daiwa PI Partners, the private equity arm of Japan’s securities group Daiwa Securities, Endeavor Catalyst, and Ondine Capital.
Existing investors including Gobi Partners and Convergence Ventures also participated in the round, which pushes four-year-old startups’s total raise to date to $85 million.
Carsome operates one of the largest car trading platforms in Southeast Asia, connecting individuals who wish to sell cars with dealers. The startup is today operational in Malaysia, Indonesia, and Thailand and claims its platform sees more than 40,000 cars worth more than $300 million trade on the platform.
The startup, which employs about 700 people and has been used by more than 6,000 dealers, also offers dealers and sellers with financing options.
Carsome uses an online auction model to conduct sales, with prospective cars typically listed the day after they are submitted by consumers following a check-up conducted by the startup’s staff.
That approach allows dealers to check in at a set time each day to look over the cars on offer, while the focus on vetting autos quickly — Carsome can dispatch vehicle checkers directly to a prospective seller’s home — means that consumers can quickly get a sale.
The auction model adds competition and the potential for a seller to make more money than they originally anticipated. That’s a dynamic, as my former colleague explained, that is tricky to replicate in other static sale models.
Eric Cheng, co-founder and chief executive of Carsome, told TechCrunch that the startup is attempting to challenge “opaque and inefficient” middle parties that “exploit the misinformation in the market.”
He added, “we want to establish a brand and a standard that advocates trust, transparency, consistency of service and quality assurance across the region that people and businesses can rely on to make their purchasing decisions.”
The startup, which competes with a number of players including Carro in Singapore, BeliMobilGue in Indonesia, and Carmudi, plans to use the fresh capital to expand to more markets in Southeast Asia such as the Philippines.
Cheng said Carsome aspires to become “the Visa/Master network of auto transactions, and build a collaborative ecosystem of partners to provide the best experience to consumers in Southeast Asia.”
Ada Ventures launches with a $34M fund aimed at super-charging diverse global founders
According to Atomico’s recent “State of European Tech, 2019” – widely considered by the European tech industry to be a reliable annual study – at present, 92 in every 100 dollars invested in Europe goes to all-male teams, 83% founders are white, 82% are university educated, in the UK, a quarter of investment committees saw no female founders in 2017 (British Business Bank) and 72% of VC funding is invested in London alone (London & Partners and Pitchbook, 2018).
As you can see, that is a massive problem for the future of diversity in the European tech industry.
At the same time, there are now multiple studies showing that not only is diversity a key component of success for any start-up, but that diverse founders are underrepresented, and yet afford a huge investment opportunity. If confirmation bias among people who all went to the same school and have the same background slowly kills new takes on innovation, where then will the new solutions to the world’s problems come from?
London-based Ada Ventures (named after Ada Lovelace, the first computer programmer) which launched quietly earlier this year, has now announced that it aims to address this problem with a new $34m (£27m) fund, designed as a “first-cheque” seed fund.
The firm says it’s “on a mission to make venture capital truly accessible to the best talent in the UK & Europe, regardless of race, gender or background.”
At TechCrunch Disrupt in Berlin today, founding partners Francesca Warner and Matt Penneycard will be discussing with me live on stage how they raised the fund and how they will put this into practice.
The background to the fund is interesting both in its aims and in the context of Brexit.
Many VC firms in the UK have been previously part-funded by the European Investment Fund.
Effectively, in this context, the UK’s ‘sovereign fund’ – the British Business Bank – will cornerstone the fund through its Enterprise Capital Funds (ECF) program, which supports new and emerging VC fund managers who target the early stage equity gap.
Other investors include global funds such as US-based Blue Sky Capital and Dubai-based Rasmala alongside individuals from across the global tech ecosystem, plus a roster of star-power in terms of European players.
It includes TransferWise co-founder Taavet Henrikus, Supercell’s co-founders, Backstage Capital’s Arlan Hamilton. The fund is also backed by leading figures from industry such as Dame Cilla Snowball, Silicon Valley law firm Wilson Sonsini and later stage funds Atomico and Inovia Capital.
So what’s the deal?
Well, as they put it, it’s the fund’s aim to have the most diverse pipeline, and portfolio, of any fund in Europe.
Ada says that they will look to invest a £500,000 first cheque – which comes post-initial product but pre-larger seed round – and reserve roughly half the fund for follow-on investments.
The aim is to make around 30 investments in companies targeting what they call “globally significant problems”, but here’s the rub: particularly for groups that are normally overlooked by VC. That includes ageing populations, women, and young people under 20. Key sectors they are after include healthcare, consumer and the future of work.
Another aspect of this launch is that the founding partners, Francesca Warner and Matt Penneycard have in fact worked around each other together for four years, at various places, including Downing Ventures, Seraphim Capital and Techstars.
And there’s a deep hinterland in this subject. Warner is the co-founder of non-profit Diversity VC, which was among one of the first initiatives in Europe to directly address the diversity gap between VC and normally overlooked founding teams.
Commenting on the launch, Warner said: “Having worked in Venture for the last four years, and through co-founding Diversity VC, I’ve seen how structurally narrowly-focused the industry is, investing in the same founders building products and services for the same customers. This is a huge missed opportunity. Ada Ventures is here to change that. We’ve redesigned our funnel of opportunities… Fundamentally, Ada Ventures is about true inclusion, and we will invest in anyone, no matter what they look like and where they come from.”
The investment strategy is reflected in the fact that Ada has invested in what it claims is the world’s first flushable sanitary pads.
Polipop co-founder and CEO Olivia Ahn said: “We approached many investors to support Polipop. As a FemTech company with a strong sustainability mission, we found investors were hesitant in an unfamiliar market. From the first meeting with Ada, it was clear that Check and Matt were different. They were not only fantastic advocates for the FemTech space but also for female and minority founders.”
The British Business Bank’s research into VC and Female Founders found that for every £1 of VC investment in the UK, all-female founder teams get less than 1p, all-male founder teams get 89p, and mixed-gender teams 10p.
Ken Cooper, managing director of Venture Solutions at the BBB said: “Ada Ventures is an important step in the right direction for the UK Venture Capital ecosystem, with a fund focused on democratizing VC investment regardless of gender, race, background, or location.”
Commenting on the launch of Ada’s first fund, Niklas Zennström, founder of Atomico, said: “Entrepreneurs are like athletes and artists; they are randomly distributed all over the world. Ada Ventures has an opportunity to be the fund in Europe for outlier talent, and we are delighted to support them.”
The execution of Ada will also call on a widely distributed network of people feeding the fund’s pipeline.
“Ada Scouts” will be a network of ‘scouts’ which has largely already been built, who will be bringing in opportunities in line with the firm’s investment strategy. They will, says Ada, be incentivized by a finder’s fee and, longer-term, aligned incentive to become investors themselves. Ada says it has in fact already agreed terms on two investments through this network.
Ada’s Scout network will not only reward scouts for surfacing deals, with both an immediate and longer-term incentive but will attempt to make its investments into investors, equipping them with capital, support and resources.
Ada launches with 45 scouts already in place, which includes the leaders of Hustle Crew, a for-profit working to make the tech industry more inclusive, Muslamic Makers, a community of Muslims in tech, Yena, the Young Entrepreneurs Networking Association, and YSYS a thriving community of entrepreneurs from a diverse range of backgrounds.
It’s a bold vision, but if Ada pulls it off, then it could be a game-changer in the European tech scene.
Australia's Senate votes to pass a social media ban for children under 16, brushing aside lawmaker concerns on both sides; tech companies could be fined A$50M (Ben Westcott/Bloomberg)
Ben Westcott / Bloomberg : Australia's Senate votes to pass a social media ban for children under 16, brushing aside lawmaker concern...
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Jake Offenhartz / Gothamist : Since October, the NYPD has deployed a quadruped robot called Spot to a handful of crime scenes and hostage...
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