Since the start of the pandemic, have you walked more or do you know someone who bought a new car? Maybe you did your first run on a rented electric bike or scooter?
Over the past year I have experimented with different mobility options to see which ones best suit my needs, like most people I know. It can be difficult to maintain a recommended physical distance on a bus or metro. (After a break of over a decade, I even briefly considered joining the ranks of auto owners!)
Full Extra Crunch items are only available to members.
Use the discount code EC Friday to save 20% on a one or two year subscription.
It took a while to get used to, but now I love traveling to San Francisco by scooter or e-bike. Before the pandemic, I was worried about driving two-wheeled vehicles in a city with a high rate of injury collisions, but there are fewer cars on the road than before.
COVID-19 has brought to light many of the weakest spots in our transportation system, but some of the rapid changes in consumer behavior are creating opportunities for technology once seen as fancy, like curbside delivery robots and eVTOL (vertical and take-off electric vehicles).
Transport Editor-in-Chief Kirsten Korosec reached out to 10 investors to find out more about “the state of mobility, the trends they are most interested in and what they are looking for in their next investments.”
Here’s who she interviewed:
- Clara Brenner, Co-Founder and Managing Partner, Urban Innovation Fund
- Shawn Carolan, Partner, Menlo Ventures
- Dave Clark, Partner, Expa
- Abhijit Ganguly, Senior Director, Goodyear Ventures
- Rachel Holt, Co-Founder and General Partner, Construct Capital
- David Lawee, Founder and General Partner, CapitalG
- Sasha Ostojic, Operational Partner, Playground Global
- Sebastian Peck, Managing Director, InMotion Ventures
- Natalia Quintero and Rachel Haot, Partnership for Innovation in Public Transit / Transit Tech Lab
Thanks so much for reading Extra Crunch this week!
Senior Writer, TechCrunch
Fraction of Robinhood users fuel its meteoric growth
Yesterday’s House Financial Services Committee hearing on the GameStop Short Squeeze Saga was pretty typical: Most lawmakers used their time to get a platform and little new information came to light.
But Alex Wilhelm found a hint: A large portion of Robinhood’s revenue is generated through Payment For Order Flow (PFOF). As part of this practice, market makers pay the trading venue for the execution of trades.
To get an idea of how Robinhood’s big guys are contributing to the overall health of the business, he calculated his PFOF earnings for the last three months of 2020.
“Borrowing a term from the casino business, these whales generate the bulk of the company’s revenue.”
Why are SaaS companies with usage-based pricing growing faster?
HubStop introduced usage-based pricing in 2011 to increase its retention rate, then close to 70%.
When it went public three years later, its net income retention rate was close to 100%, “all without hurting the company’s ability to acquire new customers.”
Providing new users with smooth onboarding, customer support, and free credits is a proven way to make them more active and more loyal.
So why are public SaaS companies with usage-based pricing seeing faster growth?
“Because they are more successful at attracting new customers, growing with them and keeping them as customers,” said Kyle Powar, vice president of growth at OpenView.
Paying $ 115 billion for Stripe or $ 77 billion for Coinbase might be pretty rational
In October 2018, the private market currency valued Coinbase at around $ 8 billion. As of this week, it is valued at $ 77 billion.
Likewise, Stripe is valued at $ 115 billion in secondary markets. By the middle of last year, that figure was closer to $ 36 billion.
“Would I line up to pay $ 77 billion for Coinbase?” asked Alex. “Probably not, but that doesn’t mean government procurement won’t.”
Growing pandemic era and PSPCs help edtech startups graduate early
Natasha Mascarenhas reports that some edtech startups are hitchhiking with special acquisition vehicles to speed up their journey to public markets.
To find out more, she interviewed Susan Wolford, President of SPAC Edify $ 200 Million Acquisition, and Nerdy CEO Chuck Cohn. Nerdy, the parent company of Varsity Tutors, is in a reverse merger with TPG Pace Tech Opportunities.
“It’s less about going into public markets and more about knowing that this transaction allows us to take an offensive stance and look at the big opportunities,” Cohn said.
Dear Sophie: Tips for submitting a green card for my future spouse
My fiance is in the United States on an H-1B visa, which will expire in about a year and a half.
We originally planned to get married last year, but he and I want to have a ceremony and party with our families and friends, so we decided to wait until the pandemic is over. I am a US citizen and plan to sponsor my fiance for a green card.
How long does it usually take to get a green card for a spouse? Any tips you can share?
– Honey in San Francisco
SPAC-led public debut inside Rover and MoneyLion
When I saw that Alex Wilhelm was writing on Tuesday about two other startups taking the SPAC route to public procurement, I briefly wondered if we were covering special purpose acquisition companies. too much frequently.
After reading his first sentence, I realized that Alex made exactly the right call because the trend emerging in 2020 could turn into a real wave: This week, pet e-commerce company Rover and fintech start-up MoneyLion have both announced their plans. Beginnings led by SPAC.
On Monday, Alex covered the news that Lerer Hippeau Acquisition Corp. and Khosla Ventures Acquisition Co. I, II and III. filed S-1 filings last week.
“You have to ask yourself if every worthwhile VC in the future will have their own line of PSPC offerings,” says Alex.
Wrote Lerer Hippeau Acquisition Corp .:
With our portfolio now reaching the stage where many envision government procurement, we see PSPCs as a natural next step in the evolution of our platform.
“If we’re not careful, every entry in this column could be PSPC news,” writes Alex.
From dorms to boardrooms: how universities promote entrepreneurship
Fifteen US-based higher education institutions have joined forces to create the University Technology Licensing Program LLC (UTLP).
The program makes it easier for entrepreneurs and investors to find intellectual property that can move their businesses forward, but it is also an attempt to repair what one participant calls “the somewhat broken interface between universities and very large companies in the technology sector ”.
4 Strategies For Deep Tech Companies Hiring High Growth Marketers
Here’s a real talk for tech founders: If you find it frustrating to work with growth pundits and marketers, the feeling is probably mutual.
“Incredible Growth People are independent and creative and are drawn to environments that explicitly value these characteristics,” says Jessica Li, a content / growth professional who was previously VC.
To attract the best talent, “demonstrate that you have a team structure in place that allows a growth marketer to fit in and thrive.”
9 investors discuss the obstacles, opportunities and impact of cloud providers in enterprise data lakes
Before my first cup of coffee this morning, I had already interacted with four different devices that were transmitting details of my behavior to a data lake.
Hopefully, the reply I sent to an automated text message while waiting for the kettle to bubble will generate a discount offer in my inbox later today. (And I hope the raw data I am transmitting has been properly secured and cataloged.)
Corporate reporter Ron Miller interviewed nine investors to learn more about their approach to the lucrative data lake market:
- Caryn Marooney, General Partner, Coatue Management
- Dharmesh Thakker, General Partner, Battery Ventures
- Casey Aylward, Director, Costanoa Ventures
- Derek Zanutto, General Partner, CapitalG
- Navin Chaddha, Managing Director, Mayfield
- Jon Lehr, Co-Founder and General Partner, Work-Bench
- Peter Wagner, Founding Partner, Wing Ventures
- Nicole Priel, Managing Director, Ibex Ventures
- Ilya Sukah, partner, Matrix Partners
Aydin Senkut from Felicis and Kevin Busque from Guideline on the value of single pitch decks
When it comes to building a lasting relationship between a founder and an investor, “trust starts in the pitch deck,” says Kevin Busque, CEO of Guideline.
Busque joined Extra Crunch Live last week with Aydin Senku of Felicis Ventures to discuss the starting round Senku refused to join – and the Series B he led shortly after.
In keeping with our new format, the duo also offered commentary on pitch decks submitted by members of the public. Read the highlights or watch a video with the full conversation.