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To money Y Combinator’& rsquo; s leading start-ups, VCs scoop them prior to Trial Day(********************************************************************************************************************** ) Hundreds collected today at San Francisco’& rsquo; s Pier(*********************************************************************************************************************************************************** )to see the greater than 200 companies in Y Combinator ’ s Winter season 2019 friend existing their two-minute pitches. The target market of investor, that jointly handle numerous billions of bucks, noted their faves. The absolute best financiers, nevertheless, had currently had their choice of the trash. What lots of put on ’ t recognize regarding the Trial Day practice is that pitching isn ’ t a need; actually, some YC finishes avoid their phase possibility entirely. Why? Due to the fact that they ’ ve currently increased resources or remain in the lasts of shutting a bargain. ZeroDown, Overview.AI and also Catch are amongst the start-ups in YC ’ s W19 set that discarded Trial Day today, having actually currently swiped financial backing. ZeroDown, a funding service genuine estate acquisitions in the Bay Location, increased a rounded upwards of $10 million at a $75 million assessment, resources inform TechCrunch. ZeroDown hasn ’ t reacted to ask for remark, neither has its reported lead financier: Goodwater Funding. Without calling for a deposit, ZeroDown acquisitions houses outright for consumers and also aids them pursue possession with regular monthly settlements established by their revenue. Business was established by Zenefits founder and also previous primary modern technology policeman Laks Srini, previous Zenefits principal running policeman Abhijeet Dwivedi and also Hari Viswanathan, a previous Zenefits personnel designer. The creators ’ experience structure Zenefits, in spite of its shortcomings, aided ZeroDown amass substantial buzz in advance of Trial Day. Resources inform TechCrunch the start-up had in fact increased a little seed round in advance of YC from previous YC head of state Sam Altman, that lately stepped down from the duty to concentrate on OpenAI, an AI research study company. Altman is stated to have actually motivated ZeroDown to finish the recognized Silicon Valley accelerator program, which, if absolutely nothing else, gives its firms an invaluable connect with which nothing else incubator or accelerator can complete. Overview AI ’ s creators ’ resumes go over, also. Russell Nibbelink and also Christopher Van Dyke were formerly designers at Salesforce and also Tesla, specifically. A commercial automation start-up, Summary is creating a wise cam efficient in discovering a device ’ s regular to discover inconsistencies, collisions or abnormalities. TechCrunch hasn ’ t had the ability to connect with Summary ’ s group or determine the dimension of its seed round, though resources validate it missed Trial Day due to a bargain. Catch, for its component, shut a $5.1 million seed round co-led by Khosla Ventures, Kindred Ventures, and also NYCA Allies before Trial Day. Rather than pitching their medical insurance system at the large occasion, Capture released a blog post revealing its initial function, The Catch Wellness Traveler. “ This is just the initial look of what we’& rsquo; re structure this year, ” Capture composed in the post. “ In a couple of months, we’& rsquo; ll be bringing end-to-end medical insurance registration for specific strategies right into Catch to offer the most effective medical insurance registration experience in the nation. ”-LRB- ************************************************). Here are the 85+ startups that launched at YC’s W19 Demo Day 1 TechCrunch has more details on the healthtech start-up ’ s financing, that included involvement from Kleiner Perkins, the Urban Technology Fund and also the Grad Fund. 4 even more start-ups, Truora, Middesk, Glide and also FlockJay had sell the lasts when they strolled onto the Trial Day phase, choosing to make their pitches instead of miss the large ending. Resources inform TechCrunch that distinguished financial backing company Accel bought both Truora and also Middesk, to name a few YC W19 grads. Truora uses quickly, dependable and also budget friendly history look for the Latin America market, while Middesk does due persistance for services to assist them carry out threat and also conformity evaluations on consumers. Ultimately, Glide, which permits customers to swiftly and also quickly develop properly designed mobile applications from Google Sheets web pages, landed assistance from Preliminary Funding, and also FlockJay, the driver an on-line sales academy that shows task applicants from underrepresented histories the abilities and also training they require to go after an occupation in technology sales, safeguarded financial investment from Lightspeed Endeavor Allies, according to resources aware of the bargain. Pre-Demo Day M&A. Raising in advance of Trial Day isn ’ t a brand-new sensation. Firms, many thanks to the important YC network, enhance their opportunities at elevating, in addition to their assessment, the minute they enlist in the accelerator. They can start talking with VCs when they choose, and also they ’ re motivated to join YC graduates, a procedure that can cause pre-Demo Day purchases. This year, Elph, a blockchain framework start-up, was bought by Brex, a buzzworthy fintech unicorn that itself finished from YC just 2 years earlier. The bargain shut simply one week prior to Trial Day. Brex’s head of design, Cosmin Nicolaescu, informs TechCrunch the Elph five-person group — consisting of founders Ritik Malhotra and also Tanooj Luthra, that formerly established the Box-acquired start-up Steem — were being looked at by a number of bigger firms as Brex bargained the bargain. “ For me, it was essential to obtain them prior to set day since that opens up the floodgates, ” Nicolaescu informed TechCrunch. “ The reason I actually liked them is they are extremely business, which straightens with what we intend to do. Each of our items is actually like its very own company. ”-LRB- ************************************************). Naturally, Brex uses a charge card for start-ups and also has no strategies to mess around with blockchain or cryptocurrency. The Elph group, instead, will certainly bring their framework safety and security knowledge to Brex, aiding the $1.1 billion business construct its following item, a charge card for big business. Brex decreased to reveal the regards to its purchase. Searching for the very best bargains. Y Combinator companions Michael Seibel and also Dalton Caldwell, and also mediator Josh Constine, talk onstage throughout TechCrunch Disrupt SF2018 (Picture by Kimberly White/Getty Pictures) Eventually, it ’ s approximately start-ups to establish the expense at which they ’ ll quit equity. YC firms elevate resources under the SAFE model, or a basic arrangement for future equity, a type of fundraising developed by YC. Generally, a financier makes a cash money financial investment in a YC start-up, after that gets business supply at a later day, generally upon a Collection A or post-seed bargain. YC made the switch from purchasing start-ups on a pre-money safe basis to a post-money risk-free in 2018 to make cap table mathematics less complicated for creators. Michael Seibel, the ceo of YC, states the accelerator collaborates with each start-up to create an individualized fundraising strategy. Business that elevate at appraisals north of $10 million, he explained, do so due to high need. “ Each business selects the quantity of cash they intend to elevate, the assessment they intend to elevate at, and also when they intend to begin fundraising, ” Seibel informed TechCrunch using e-mail. “ YC is just an expert and also does not determine exactly how our firms run. The substantial bulk of firms total fundraising in the 1 to 2 months after Trial Day. According to our information, there is little relationship in between the firms that are most sought after on Trial Day and also ones that take place to end up being incredibly effective. Our recommendations to creators is not to over enhance the fundraising procedure. ”-LRB- ************************************************). Though Seibel states the bulk raising in the months adhering to Trial Day, it appears the absolute best financiers understand to be aggressive regarding assessing and also purchasing the set prior to the large occasion. Khosla Ventures, like various other leading VC companies, meets YC firms as very early as feasible, companion Kristina Simmons informs TechCrunch, also setting up meetings with firms in the duration in between when a start-up is approved to YC to prior to they in fact start the program. An additional Khosla companion, Evan Moore, resembled Seibel ’ s declaration, declaring there isn ’ t a connection in between the future unicorns and also those that elevate resources in advance of Trial Day. Moore is a founder of DoorDash, a YC grad currently worth $7.1 billion. DoorDash shut its preliminary of resources in the weeks adhering to Trial Day. “ I assume a great deal of the task prior to demonstration day is driven by financier FOMO, ” Moore composed in an e-mail to TechCrunch. “ I ’ ve had financiers ask me exactly how to get involved in a firm without also understanding what the business does! I primarily see this as an adverse effects of an advantage: YC has actually aided tip the range towards creators by developing a setting where financiers complete. This vibrant isn ’ t what lots of financiers are utilized to, so every set some grumble regarding appraisals and also exactly how simple the creators have it, however making it less complicated for enthusiastic business owners to obtain financing and also seek their vision is an advantage for the economic situation. ”-LRB- ************************************************). This year, offered the number of recent changes at YC — particularly the size of its latest batch — there was included stress on the accelerator to display its ideal team yet. As well as while some did inform TechCrunch they were particularly amazed with the schedule, others certainly shared stress with appraisals. Numerous YC start-ups are fundraising at appraisals at or more than $10 million. For context, that ’ s in fact flawlessly according to the typical seed-stage assessment in2018 According to PitchBook, UNITED STATE start-ups increased seed rounds at an average post-valuation of $10 million in 2015; up until now this year, firms are elevating seed rounds at a somewhat greater post-valuation of $11 million. Keeping that stated, a lot of the start-ups in YC ’ s associates are not as fully grown as the ordinary seed-stage business. Per PitchBook, a firm can be a number of years old prior to it protects its seed round. I did not talk with a solitary business in this set elevating under $10 M blog post (unquestionably I just had the ability to talk with a portion of the 205). —– Peter Rojas (@peterrojas) March 20, 2019 Nevertheless, expensive bargains can come as a frustration to the seed financiers that discover themselves at YC annually however due to the fact that their track records aren ’ t as soaring as say, Accel, aren ’ t able to publication pre-Demo Day conferences with YC ’ s top of course. The inquiry is that is Y Combinator offering? As well as the response is creators, not financiers. YC is under no responsibility to provide bargains of a specific assessment neither is it in charge of which financiers access to its ideal firms at what time. Nevertheless, start-ups are bring in bigger and also bigger rounds, earlier in their life expectancies; shouldn’& rsquo; t YC, a microcosm for the Silicon Valley start-up community, encourage their start-ups to bill the most effective financiers the going price? All 88 companies from Y Combinator’s W19 Demo Day 2 Find Out More: feedproxy.google.com.

Hundreds gathered this week at San Francisco’s Pier 48 to see the more than 200 companies in Y Combinator’s Winter 2019 cohort present their two-minute pitches. The audience of venture capitalists, who collectively manage hundreds of billions of dollars, noted their favorites. The very best investors, however, had already had their pick of the litter.

What many don’t realize about the Demo Day tradition is that pitching isn’t a requirement; in fact, some YC graduates skip out on their stage opportunity altogether. Why? Because they’ve already raised capital or are in the final stages of closing a deal.

ZeroDown, Overview.AI and Catch are among the startups in YC’s W19 batch that forwent Demo Day this week, having already pocketed venture capital. ZeroDown, a financing solution for real estate purchases in the Bay Area, raised a round upwards of $10 million at a $75 million valuation, sources tell TechCrunch. ZeroDown hasn’t responded to requests for comment, nor has its rumored lead investor: Goodwater Capital.

Without requiring a down payment, ZeroDown purchases homes outright for customers and helps them work toward ownership with monthly payments determined by their income. The business was founded by Zenefits co-founder and former chief technology officer Laks Srini, former Zenefits chief operating officer Abhijeet Dwivedi and Hari Viswanathan, a former Zenefits staff engineer.

The founders’ experience building Zenefits, despite its shortcomings, helped ZeroDown garner significant buzz ahead of Demo Day. Sources tell TechCrunch the startup had actually raised a small seed round ahead of YC from former YC president Sam Altman, who recently stepped down from the role to focus on OpenAI, an AI research organization. Altman is said to have encouraged ZeroDown to complete the respected Silicon Valley accelerator program, which, if nothing else, grants its companies a priceless network with which no other incubator or accelerator can compete.

Overview .AI’s founders’ resumes are impressive, too. Russell Nibbelink and Christopher Van Dyke were previously engineers at Salesforce and Tesla, respectively. An industrial automation startup, Overview is developing a smart camera capable of learning a machine’s routine to detect deviations, crashes or anomalies. TechCrunch hasn’t been able to get in touch with Overview’s team or pinpoint the size of its seed round, though sources confirm it skipped Demo Day because of a deal.

Catch, for its part, closed a $5.1 million seed round co-led by Khosla Ventures, Kindred Ventures, and NYCA Partners prior to Demo Day. Instead of pitching their health insurance platform at the big event, Catch published a blog post announcing its first feature, The Catch Health Explorer.

“This is only the first glimpse of what we’re building this year,” Catch wrote in the blog post. “In a few months, we’ll be bringing end-to-end health insurance enrollment for individual plans into Catch to provide the best health insurance enrollment experience in the country.”

Here are the 85+ startups that launched at YC’s W19 Demo Day 1

TechCrunch has more details on the healthtech startup’s funding, which included participation from Kleiner Perkins, the Urban Innovation Fund and the Graduate Fund.

Four more startups, Truora, Middesk, Glide and FlockJay had deals in the final stages when they walked onto the Demo Day stage, deciding to make their pitches rather than skip the big finale. Sources tell TechCrunch that renowned venture capital firm Accel invested in both Truora and Middesk, among other YC W19 graduates. Truora offers fast, reliable and affordable background checks for the Latin America market, while Middesk does due diligence for businesses to help them conduct risk and compliance assessments on customers.

Finally, Glide, which allows users to quickly and easily create well-designed mobile apps from Google Sheets pages, landed support from First Round Capital, and FlockJay, the operator an online sales academy that teaches job seekers from underrepresented backgrounds the skills and training they need to pursue a career in tech sales, secured investment from Lightspeed Venture Partners, according to sources familiar with the deal.

Pre-Demo Day M&A

Raising ahead of Demo Day isn’t a new phenomenon. Companies, thanks to the invaluable YC network, increase their chances at raising, as well as their valuation, the moment they enroll in the accelerator. They can begin chatting with VCs when they see fit, and they’re encouraged to mingle with YC alumni, a process that can result in pre-Demo Day acquisitions.

This year, Elph, a blockchain infrastructure startup, was bought by Brex, a buzzworthy fintech unicorn that itself graduated from YC only two years ago. The deal closed just one week before Demo Day. Brex’s head of engineering, Cosmin Nicolaescu, tells TechCrunch the Elph five-person team — including co-founders Ritik Malhotra and Tanooj Luthra, who previously founded the Box-acquired startup Steem — were being eyed by several larger companies as Brex negotiated the deal.

“For me, it was important to get them before batch day because that opens the floodgates,” Nicolaescu told TechCrunch. “The reason why I really liked them is they are very entrepreneurial, which aligns with what we want to do. Each of our products is really like its own business.”

Of course, Brex offers a credit card for startups and has no plans to dabble with blockchain or cryptocurrency. The Elph team, rather, will bring their infrastructure security know-how to Brex, helping the $1.1 billion company build its next product, a credit card for large enterprises. Brex declined to disclose the terms of its acquisition.

Hunting for the best deals

Y Combinator partners Michael Seibel and Dalton Caldwell, and moderator Josh Constine, speak onstage during TechCrunch Disrupt SF 2018. (Photo by Kimberly White/Getty Images)

Ultimately, it’s up to startups to determine the cost at which they’ll give up equity. YC companies raise capital under the SAFE model, or a simple agreement for future equity, a form of fundraising invented by YC. Basically, an investor makes a cash investment in a YC startup, then receives company stock at a later date, typically upon a Series A or post-seed deal. YC made the switch from investing in startups on a pre-money safe basis to a post-money safe in 2018 to make cap table math easier for founders.

Michael Seibel, the chief executive officer of YC, says the accelerator works with each startup to develop a personalized fundraising plan. The businesses that raise at valuations north of $10 million, he explained, do so because of high demand.

“Each company decides on the amount of money they want to raise, the valuation they want to raise at, and when they want to start fundraising,” Seibel told TechCrunch via email. “YC is only an advisor and does not dictate how our companies operate. The vast majority of companies complete fundraising in the 1 to 2 months after Demo Day. According to our data, there is little correlation between the companies who are most in demand on Demo Day and ones who go on to become extremely successful. Our advice to founders is not to over optimize the fundraising process.”

Though Seibel says the majority raise in the months following Demo Day, it seems the very best investors know to be proactive about reviewing and investing in the batch before the big event.

Khosla Ventures, like other top VC firms, meets with YC companies as early as possible, partner Kristina Simmons tells TechCrunch, even scheduling interviews with companies in the period between when a startup is accepted to YC to before they actually begin the program. Another Khosla partner, Evan Moore, echoed Seibel’s statement, claiming there isn’t a correlation between the future unicorns and those that raise capital ahead of Demo Day. Moore is a co-founder of DoorDash, a YC graduate now worth $7.1 billion. DoorDash closed its first round of capital in the weeks following Demo Day.

“I think a lot of the activity before demo day is driven by investor FOMO,” Moore wrote in an email to TechCrunch. “I’ve had investors ask me how to get into a company without even knowing what the company does! I mostly see this as a side effect of a good thing: YC has helped tip the scale toward founders by creating an environment where investors compete. This dynamic isn’t what many investors are used to, so every batch some complain about valuations and how easy the founders have it, but making it easier for ambitious entrepreneurs to get funding and pursue their vision is a good thing for the economy.”

This year, given the number of recent changes at YC — namely the size of its latest batch — there was added pressure on the accelerator to showcase its best group yet. And while some did tell TechCrunch they were especially impressed with the lineup, others indeed expressed frustration with valuations.

Many YC startups are fundraising at valuations at or higher than $10 million. For context, that’s actually perfectly in line with the median seed-stage valuation in 2018. According to PitchBook, U.S. startups raised seed rounds at a median post-valuation of $10 million last year; so far this year, companies are raising seed rounds at a slightly higher post-valuation of $11 million. With that said, many of the startups in YC’s cohorts are not as mature as the average seed-stage company. Per PitchBook, a company can be several years of age before it secures its seed round.

I did not talk to a single company in this batch raising under $10M post (admittedly I only was able to speak with a fraction of the 205).

— Peter Rojas (@peterrojas) March 20, 2019

Nonetheless, pricey deals can come as a disappointment to the seed investors who find themselves at YC every year but because their reputations aren’t as lofty as say, Accel, aren’t able to book pre-Demo Day meetings with YC’s top of class.

The question is who is Y Combinator serving? And the answer is founders, not investors. YC is under no obligation to serve up deals of a certain valuation nor is it responsible for which investors gain access to its best companies at what time. After all, startups are raking in larger and larger rounds, earlier in their lifespans; shouldn’t YC, a microcosm for the Silicon Valley startup ecosystem, advise their startups to charge the best investors the going rate?

All 88 companies from Y Combinator’s W19 Demo Day 2

Read more: feedproxy.google.com

The post To money Y Combinator’& rsquo; s leading start-ups, VCs scoop them prior to Trial Day(********************************************************************************************************************** ) Hundreds collected today at San Francisco’& rsquo; s Pier(*********************************************************************************************************************************************************** )to see the greater than 200 companies in Y Combinator ’ s Winter season 2019 friend existing their two-minute pitches. The target market of investor, that jointly handle numerous billions of bucks, noted their faves. The absolute best financiers, nevertheless, had currently had their choice of the trash. What lots of put on ’ t recognize regarding the Trial Day practice is that pitching isn ’ t a need; actually, some YC finishes avoid their phase possibility entirely. Why? Due to the fact that they ’ ve currently increased resources or remain in the lasts of shutting a bargain. ZeroDown, Overview.AI and also Catch are amongst the start-ups in YC ’ s W19 set that discarded Trial Day today, having actually currently swiped financial backing. ZeroDown, a funding service genuine estate acquisitions in the Bay Location, increased a rounded upwards of $10 million at a $75 million assessment, resources inform TechCrunch. ZeroDown hasn ’ t reacted to ask for remark, neither has its reported lead financier: Goodwater Funding. Without calling for a deposit, ZeroDown acquisitions houses outright for consumers and also aids them pursue possession with regular monthly settlements established by their revenue. Business was established by Zenefits founder and also previous primary modern technology policeman Laks Srini, previous Zenefits principal running policeman Abhijeet Dwivedi and also Hari Viswanathan, a previous Zenefits personnel designer. The creators ’ experience structure Zenefits, in spite of its shortcomings, aided ZeroDown amass substantial buzz in advance of Trial Day. Resources inform TechCrunch the start-up had in fact increased a little seed round in advance of YC from previous YC head of state Sam Altman, that lately stepped down from the duty to concentrate on OpenAI, an AI research study company. Altman is stated to have actually motivated ZeroDown to finish the recognized Silicon Valley accelerator program, which, if absolutely nothing else, gives its firms an invaluable connect with which nothing else incubator or accelerator can complete.

Overview AI ’ s creators ’ resumes go over, also. Russell Nibbelink and also Christopher Van Dyke were formerly designers at Salesforce and also Tesla, specifically. A commercial automation start-up, Summary is creating a wise cam efficient in discovering a device ’ s regular to discover inconsistencies, collisions or abnormalities. TechCrunch hasn ’ t had the ability to connect with Summary ’ s group or determine the dimension of its seed round, though resources validate it missed Trial Day due to a bargain. Catch, for its component, shut a $5.1 million seed round co-led by Khosla Ventures, Kindred Ventures, and also NYCA Allies before Trial Day. Rather than pitching their medical insurance system at the large occasion, Capture released a blog post revealing its initial function, The Catch Wellness Traveler. “ This is just the initial look of what we’& rsquo; re structure this year, ” Capture composed in the post. “ In a couple of months, we’& rsquo; ll be bringing end-to-end medical insurance registration for specific strategies right into Catch to offer the most effective medical insurance registration experience in the nation. ”-LRB- ************************************************).

Here are the 85+ startups that launched at YC’s W19 Demo Day 1

TechCrunch has more details on the healthtech start-up ’ s financing, that included involvement from Kleiner Perkins, the Urban Technology Fund and also the Grad Fund. 4 even more start-ups, Truora, Middesk, Glide and also FlockJay had sell the lasts when they strolled onto the Trial Day phase, choosing to make their pitches instead of miss the large ending. Resources inform TechCrunch that distinguished financial backing company Accel bought both Truora and also Middesk, to name a few YC W19 grads. Truora uses quickly, dependable and also budget friendly history look for the Latin America market, while Middesk does due persistance for services to assist them carry out threat and also conformity evaluations on consumers. Ultimately, Glide, which permits customers to swiftly and also quickly develop properly designed mobile applications from Google Sheets web pages, landed assistance from Preliminary Funding, and also FlockJay, the driver an on-line sales academy that shows task applicants from underrepresented histories the abilities and also training they require to go after an occupation in technology sales, safeguarded financial investment from Lightspeed Endeavor Allies, according to resources aware of the bargain. Pre-Demo Day M&A.

Raising in advance of Trial Day isn ’ t a brand-new sensation. Firms, many thanks to the important YC network, enhance their opportunities at elevating, in addition to their assessment, the minute they enlist in the accelerator. They can start talking with VCs when they choose, and also they ’ re motivated to join YC graduates, a procedure that can cause pre-Demo Day purchases. This year, Elph, a blockchain framework start-up, was bought by Brex, a buzzworthy fintech unicorn that itself finished from YC just 2 years earlier. The bargain shut simply one week prior to Trial Day. Brex’s head of design, Cosmin Nicolaescu, informs TechCrunch the Elph five-person group — consisting of founders Ritik Malhotra and also Tanooj Luthra, that formerly established the Box-acquired start-up Steem — were being looked at by a number of bigger firms as Brex bargained the bargain. “ For me, it was essential to obtain them prior to set day since that opens up the floodgates, ” Nicolaescu informed TechCrunch. “ The reason I actually liked them is they are extremely business, which straightens with what we intend to do. Each of our items is actually like its very own company. ”-LRB- ************************************************). Naturally, Brex uses a charge card for start-ups and also has no strategies to mess around with blockchain or cryptocurrency. The Elph group, instead, will certainly bring their framework safety and security knowledge to Brex, aiding the $1.1 billion business construct its following item, a charge card for big business. Brex decreased to reveal the regards to its purchase. Searching for the very best bargains. Y Combinator companions Michael Seibel and also Dalton Caldwell, and also mediator Josh Constine, talk onstage throughout TechCrunch Disrupt SF2018 (Picture by Kimberly White/Getty Pictures) Eventually, it ’ s approximately start-ups to establish the expense at which they ’ ll quit equity. YC firms elevate resources under the SAFE model, or a basic arrangement for future equity, a type of fundraising developed by YC. Generally, a financier makes a cash money financial investment in a YC start-up, after that gets business supply at a later day, generally upon a Collection A or post-seed bargain. YC made the switch from purchasing start-ups on a pre-money safe basis to a post-money risk-free in 2018 to make cap table mathematics less complicated for creators. Michael Seibel, the ceo of YC, states the accelerator collaborates with each start-up to create an individualized fundraising strategy. Business that elevate at appraisals north of $10 million, he explained, do so due to high need. “ Each business selects the quantity of cash they intend to elevate, the assessment they intend to elevate at, and also when they intend to begin fundraising, ” Seibel informed TechCrunch using e-mail. “ YC is just an expert and also does not determine exactly how our firms run. The substantial bulk of firms total fundraising in the 1 to 2 months after Trial Day. According to our information, there is little relationship in between the firms that are most sought after on Trial Day and also ones that take place to end up being incredibly effective. Our recommendations to creators is not to over enhance the fundraising procedure. ”-LRB- ************************************************). Though Seibel states the bulk raising in the months adhering to Trial Day, it appears the absolute best financiers understand to be aggressive regarding assessing and also purchasing the set prior to the large occasion. Khosla Ventures, like various other leading VC companies, meets YC firms as very early as feasible, companion Kristina Simmons informs TechCrunch, also setting up meetings with firms in the duration in between when a start-up is approved to YC to prior to they in fact start the program. An additional Khosla companion, Evan Moore, resembled Seibel ’ s declaration, declaring there isn ’ t a connection in between the future unicorns and also those that elevate resources in advance of Trial Day. Moore is a founder of DoorDash, a YC grad currently worth $7.1 billion. DoorDash shut its preliminary of resources in the weeks adhering to Trial Day. “ I assume a great deal of the task prior to demonstration day is driven by financier FOMO, ” Moore composed in an e-mail to TechCrunch. “ I ’ ve had financiers ask me exactly how to get involved in a firm without also understanding what the business does! I primarily see this as an adverse effects of an advantage: YC has actually aided tip the range towards creators by developing a setting where financiers complete. This vibrant isn ’ t what lots of financiers are utilized to, so every set some grumble regarding appraisals and also exactly how simple the creators have it, however making it less complicated for enthusiastic business owners to obtain financing and also seek their vision is an advantage for the economic situation. ”-LRB- ************************************************). This year, offered the number of recent changes at YC — particularly the size of its latest batch — there was included stress on the accelerator to display its ideal team yet. As well as while some did inform TechCrunch they were particularly amazed with the schedule, others certainly shared stress with appraisals. Numerous YC start-ups are fundraising at appraisals at or more than $10 million. For context, that ’ s in fact flawlessly according to the typical seed-stage assessment in2018 According to PitchBook, UNITED STATE start-ups increased seed rounds at an average post-valuation of $10 million in 2015; up until now this year, firms are elevating seed rounds at a somewhat greater post-valuation of $11 million. Keeping that stated, a lot of the start-ups in YC ’ s associates are not as fully grown as the ordinary seed-stage business. Per PitchBook, a firm can be a number of years old prior to it protects its seed round.

I did not talk with a solitary business in this set elevating under $10 M blog post (unquestionably I just had the ability to talk with a portion of the 205). —– Peter Rojas (@peterrojas) March 20, 2019

Nevertheless, expensive bargains can come as a frustration to the seed financiers that discover themselves at YC annually however due to the fact that their track records aren ’ t as soaring as say, Accel, aren ’ t able to publication pre-Demo Day conferences with YC ’ s top of course. The inquiry is that is Y Combinator offering? As well as the response is creators, not financiers. YC is under no responsibility to provide bargains of a specific assessment neither is it in charge of which financiers access to its ideal firms at what time. Nevertheless, start-ups are bring in bigger and also bigger rounds, earlier in their life expectancies; shouldn’& rsquo; t YC, a microcosm for the Silicon Valley start-up community, encourage their start-ups to bill the most effective financiers the going price?

All 88 companies from Y Combinator’s W19 Demo Day 2

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toomanysinks · 6 years ago

Text

To fund Y Combinator’s top startups, VCs scoop them before Demo Day

Catch, for its part, closed a $5.1 million seed round co-led by Khosla Ventures, NYCA Partners and Steve Jang prior to Demo Day. Instead of pitching their health insurance platform at the big event, Catch published a blog post announcing its first feature, The Catch Health Explorer.

Here are the 85+ startups that launched at YC’s W19 Demo Day 1

TechCrunch has more details on the healthtech startup’s funding, which included participation from Kleiner Perkins, the Urban Innovation Fund and the Graduate Fund.

Pre-Demo Day M&A

Hunting for the best deals

Y Combinator partners Michael Seibel and Dalton Caldwell, and moderator Josh Constine, speak onstage during TechCrunch Disrupt SF 2018. (Photo by Kimberly White/Getty Images)

Though Seibel says the majority raise in the months following Demo Day, it seems the very best investors know to be proactive about reviewing and investing in the batch before the big event.

I did not talk to a single company in this batch raising under $10M post (admittedly I only was able to speak with a fraction of the 205).

— Peter Rojas (@peterrojas) March 20, 2019

All 88 companies from Y Combinator’s W19 Demo Day 2

source https://techcrunch.com/2019/03/21/to-back-the-best-y-combinator-graduates-vcs-must-act-quickly/

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fmservers · 6 years ago

Text

To fund Y Combinator’s top startups, VCs scoop them before Demo Day

Here are the 85+ startups that launched at YC’s W19 Demo Day 1

TechCrunch has more details on the healthtech startup’s funding, which included participation from Kleiner Perkins, the Urban Innovation Fund and the Graduate Fund.

Pre-Demo Day M&A

Hunting for the best deals

Y Combinator partners Michael Seibel and Dalton Caldwell, and moderator Josh Constine, speak onstage during TechCrunch Disrupt SF 2018. (Photo by Kimberly White/Getty Images)

Though Seibel says the majority raise in the months following Demo Day, it seems the very best investors know to be proactive about reviewing and investing in the batch before the big event.

I did not talk to a single company in this batch raising under $10M post (admittedly I only was able to speak with a fraction of the 205).

— Peter Rojas (@peterrojas) March 20, 2019

All 88 companies from Y Combinator’s W19 Demo Day 2

Via Kate Clark https://techcrunch.com

#TechCrunch

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insurance-brokers-india · 7 months ago

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How Do I Campaign for Health Group Insurance for Corporate Companies, and What CRM & Employee Benefits Software Is Flexible for It?

Campaigning for health group insurance requires a well-structured approach and the right tools to manage operations effectively. Here’s a guide to help you succeed:

Steps to Campaign for Health Group Insurance

1. Define Your Target Audience

Identify corporate companies by industry, size, and workforce demographics.

Focus on industries with high employee turnover or competitive benefit demands, such as IT, finance, or healthcare.

2. Understand Their Needs

Conduct surveys or interviews with HR managers to understand their challenges and goals.

Highlight solutions for improving employee retention, satisfaction, and productivity.

3. Develop Customized Solutions

Create tailored health insurance plans that meet the unique needs of each company.

Offer flexibility in coverage options, such as family benefits or mental health support.

4. Create a Multi-Channel Marketing Strategy

Email Campaigns: Send informative emails about the benefits of health group insurance.

Social Media Ads: Target decision-makers like HR managers and CEOs on LinkedIn and Facebook.

Webinars & Workshops: Educate companies about the advantages of group insurance and how it benefits their workforce.

5. Leverage Testimonials and Case Studies

Share success stories of other corporate clients who implemented your health group insurance.

6. Collaborate with Brokers

Partner with insurance brokers to expand your reach and tap into their corporate networks.

7. Use the Right Tools for Campaign Management

Use a CRM and employee benefits software to automate processes, manage leads, and track performance.

Why Use CRM and Employee Benefits Software?

CRM (Customer Relationship Management Software)

Helps streamline lead generation, follow-ups, and customer engagement.

Tracks the campaign’s success metrics, such as lead conversion rates.

Examples: Mzapp Insurance Broking Software, Salesforce.

Employee Benefits Software

Simplifies the management of health group insurance policies for corporate clients.

Provides real-time dashboards for HR managers to track employee benefits.

Automates renewals, claims, and communication with employees.

Examples: Mzapp Employee Benefits Software, Zenefits.

Why Choose Mzapp Solutions?

Customizable: Tailored to meet the needs of corporate companies.

Scalable: Grows with your business, making it suitable for small to large enterprises.

User-Friendly: Easy for HR teams and brokers to manage policies and communicate with employees.

Secure: Ensures data protection for sensitive corporate and employee information.

👉 Book a Demo Meeting For more details, visit: https://mindzen.com/health-insurance-management-software/

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theinvinciblenoob · 7 years ago

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Earlier this month, Brex, a credit card provider to startups, announced it had raised $125 million at a $1.1 billion valuation.

The round was impressive for a couple of reasons: The founders are a pair of 22-year-olds that had set out to build a virtual reality company before pivoting to payments, and they had only completed Y Combinator, a well-known Silicon Valley startup accelerator, the year prior.

Y Combinator is responsible for many successes in the startup world, certainly more than its fellow accelerators, which are all known to provide early-stage companies with a seed investment — in YC’s case, $150,000 — mentorship and educational resources through a short-term program that culminates in a demo day.

Today, YC has released the latest list of its most successful companies since it began backing startups in 2005. Ranked by valuation and/or market cap, Brex, sure enough, is the youngest company to crack the top 20:

Airbnb: An online travel community and room-sharing platform founded by Brian Chesky, Joe Gebbia and Nathan Blecharczyk. Valuation: $31 billion. YC W2009.

Stripe: A provider of an online payment processing system for internet businesses founded by John and Patrick Collison. Valuation: $20 billion. YC S2009.

Cruise: Acquired by GM in 2006, the company is building autonomous vehicles. It was founded by Kyle Vogt and Daniel Kan. Valuation: $14 billion. YC W2014.

Dropbox: A file hosting service and workplace collaboration platform founded by Drew Houston and Arash Ferdowsi that went public in March. Market cap: >$10 billion. YC S2007.

Instacart: A grocery and home essentials delivery service founded by Apoorva Mehta, Max Mullen and Brandon Leonardo. Valuation: $7.6 billion. YC S2012.

Machine Zone: A mobile games company, founded by Mike Sherrill, Gabriel Leydon and Halbert Nakagawa, known for “Game of War.” Valuation: >$5 billion. YC W2008.

DoorDash: An app-based food delivery service founded by Tony Xu, Stanley Tang and Andy Fang. Valuation: $4 billion. YC S2013.

Zenefits: The provider of human resources software for small and medium-sized businesses founded by Laks Srini and Parker Conrad. Valuation: $2 billion. YC W2013.

Gusto: The provider of software that automates and simplifies payroll for businesses, founded by Josh Reeves, Tomer London and Edward Kim. Valuation: $2 billion. YC W2012.

Reddit: An online platform for conversation and thousands of communities founded by Alexis Ohanian and Steve Huffman. Valuation: $1.8 billion. YC S2005.

Coinbase: A digital cryptocurrency exchange and wallet platform founded by Brian Armstrong and Fred Ehrsam. Valuation ~$1.6 billion. YC S2012.

PagerDuty: A digital ops management platform for businesses founded by Baskar Puvanathasan, Andrew Miklas and Alex Solomon. Valuation: $1.3 billion. YC S2012.

Docker: A platform for applications that gives developers the freedom to build, manage and secure business-critical applications, founded by Solomon Hykes and Sebastien Pahl. Valuation: $1.3 billion. YC S2010.

Ginkgo Bioworks: A biotech company focused on designing custom microbes founded by Reshma Shetty, Jason Kelly, Barry Canton and others. Valuation: >$1 billion. YC S2014.

Rappi: A Latin American on-demand delivery startup founded by Felipe Villamarin, Simon Borrero and Sebastian Mejia. Valuation: >$1 billion. YC W2016.

Brex: A B2B financial startup that provides corporate cards to startups. Its founders include Henrique Dubugras and Pedro Franceschi. Valuation: $1.1 billion. YC W2017.

GitLab: A developer service founded by Sid Sijbrandij and Dmitriy Zaporozhets that aims to offer a full lifecycle DevOps platform. Valuation: $1.1 billion. YC W2015.

Twitch: An Amazon-acquired live-streaming platform for video games used by millions. Its founders include Emmett Shear, Justin Kan, Michael Seibel and Kyle Vogt. YC W2007.

Flexport: A logistics company that moves freight globally by air, ocean, rail and truck founded by Ryan Petersen. Valuation: ~$1 billion. YC W2014.

Mixpanel: A user analytics platform that helps each person at a business understand its users, founded by Suhail Doshi and Tim Trefren. Valuation: >$865 million. YC S2009.

The full list of Y Combinator’s 100 most successful companies is available here.

Y Combinator is changing up the way it invests

via TechCrunch

#IFTTT #TechCrunch

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ralphmorgan-blog1 · 7 years ago

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Theranos and Silicon Valley’s ‘Fake It Till You Make It’ Culture

More than two years after a Wall Street Journal investigation exposed potential fraud at blood-testing startup Theranos, many of us have forgotten about the company. The Securities and Exchange Commission has not.

Wednesday, the regulatory agency charged CEO Elizabeth Holmes and former President Ramesh Balwani with an “elaborate, years-long fraud in which they exaggerated or made false statements about the company’s technology, business, and financial performance.” As a result of the SEC’s charges, Holmes has agreed to reduce her equity stake and voting control in the company. She’s also agreed to a 10-year ban on working at public companies.

More significant than the news is the message it’s meant to send to all Silicon Valley startups—not just those whose photogenic CEOs land on magazine covers.

“The Theranos story is an important lesson for Silicon Valley,” said Jina Choi, director of the SEC’s San Francisco Regional Office, in a statement. “Innovators who seek to revolutionize and disrupt an industry must tell investors the truth about what their technology can do today, not just what they hope it might do someday.”

The scale of Theranos’ alleged fraud is unusual, but the forces behind it are not. Startup culture venerates the kind of “fake it till you make it” hustling that Holmes deployed. When Theranos was first exposed, tech industry leaders defended the company. As more reporting about its wrongdoing emerged, industry leaders characterized Theranos as an outlier, not indicative of the broader startup culture. A music video made by a venture firm even included the line, “Theranos doesn’t represent us, we are better.”

But scores of minor scandals and lawsuits, combined with 2017’s series of scandals at the country’s most valuable private startup, Uber (former motto: “Always be hustlin’”), make it clear that faking it is more common than just Theranos. In October the SEC fined Zenefits, an employee-benefits startup, for misleading investors about its compliance with insurance laws.

Historically, the startup world’s “fake it till you make it” culture wasn’t a much of a problem; venture investors encouraged startup founders to think big and a high percentage of them fail anyway. So what if someone stretches the truth a little in pursuit of world domination? The nature of technology requires a degree of magical thinking to function. As I wrote in 2016, even the most well-intentioned startup founders have to persuade investors, engineers, and customers to believe in a future where their totally made-up idea will be real:

“That’s not ‘My cola tastes better than yours.’ That’s ‘Let me explain to you how the world’s going to be,’” says Chris Bulger, managing director at Bulger Partners, an investment bank that advises technology companies on acquisitions. “Is that person lying when they turn out to be wrong?”

But now, in the so-called “age of unicorns,” startups can raise large sums of capital from private investors and become sizable businesses without the scrutiny, onerous disclosures, and strict regulatory compliance of being a public company. But when a private company grows to be Uber-sized, all those puffed up pitch decks, blustery product demos, unethical business practices, and slightly exaggerated claims can affect a broader range of investors, employees, and customers. The Theranos investigation shows that companies don’t need to be publicly traded to garner regulatory attention. The SEC is already watching.

Startup Saga

Catch up on Theranos's many misdeeds here.

Uber is the world's most richly valued startup, but has a sordid history of spying on customers and drivers, deceiving regulators, and permitting widespread harassment.

Many entrepreneurs and venture capitalists seem unaware of the rising distrust of tech companies.

Sponsored by AMA News

This article was searched, compiled, delivered and presented using RSS Masher & TrendingTraffic

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Theranos and Silicon Valley’s ‘Fake It Till You Make It’ Culture was originally posted by A 18 MOA Top News from around

#A 18 MOA Top News from around

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softwarerecommendations · 8 years ago

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5 MUST-HAVE ELEMENTS TO CONSIDER BEFORE PURCHASING PAYROLL SOFTWARE

Payroll software is designed to minimize the payroll errors and also to reduce the time what you spend in calculation and submission of payroll information. Whether you are going to start up a new company, making the jump from books to computer, or looking for replacement payroll software then it becomes important to get payroll software that is going to do everything which you need to it and also fit the needs of your company. Choosing the right Payroll Software is a big challenge while there are hundreds of payroll service providers available with their different features.

Keka HR Payroll platform, Human Resource Management System Thread, Beehive HRMS, Paywell Payroll Software, Paybooks, ADP Vista HCM etc are few best Payroll Softwares. While Zenefits, Xero, QuickBooks, UltiPro, BambooHR, Delteck Vision, Time Camp and Bright Pay are few best Payroll Softwares for the small businesses. The user usually prefers free of cost software among the numerous available software.

Some best free software which has also been rated as the best in this group are Gusto, Xero, ADP Workforce Now, Wave, Zenefits etc. Payroll management software can be used by companies to perform tasks such as calculating staff members’ salaries and deductions, generating paystubs and tax forms, depositing the salary directly into employees’ bank accounts and more. Payroll software for the management can be used by the companies to perform various tasks such as employees data check, their salaries and tax forms and also for depositing the salary directly into the bank accounts of the employees. Some best management software are Gusto, BambooHR, UltiPro, Wave, Xero etc.

To make your task easier, mentioned below is a list of requisites which you must have to know while purchasing a Payroll Software, should be noticed by the business owners –

(1) Customer Service and Technical Support – While purchasing Payroll Software then it becomes important to know about its repairs whether it is guaranteed quickly and easily or not. This is also significant to know about the type of support that the company provides to their customers as well as their expected timeframe for resolution. Usually, unlimited technical support is best, but literally, it is not offered by all software titles. Literally, expensive payroll software programs tend to have better tech support, which can make a world of difference when the end of the fiscal year rolls around. Before going to get a software company by purchasing their product also find out the location of the particular company and if the company has what usually defined as a “passive” or “active” customer support system then also know about the hours of support and how does their support department operate.

(2) User-friendly Interface – A user-friendly payroll management system is always demanded by the users as it allows easy access to the features and functionalities from handheld devices as well. Before buying Payroll Software you should be noticed about whether it is designed for small business owners or not. Also, notice that it should be easy to follow wizard guides through the company creation process and employee setup.

(3) Free Trial – the Free trial is one of the most important keys by which you can see how the system works in your company without any real commitment. So it becomes important, free demo or trial for a week on the package must be done before reaching to the final decision. Also, beware of trial periods that use the term “risk-free” as this is not the same what they actually promise. It may also mean that you can cancel it without any penalty, but after it will be required to pay for the full amount of time that the system is used if you decide to continue with it. It also gives you a fluent picture of the software’s features, functionalities, reports, and user-friendliness as well and assures you whether it will meet the future expectations of the company or not. Before agreeing to anything regarding a trial period, you also have to make sure that you are clearing T&C or not.

(4) Human Resource (HR) Management – The systems and processes of any organization should be process dependent and not person dependent. HRMS software is integrated to meet all the needs of HR. It helps to improve the morale and productivity of the organization.This ensures that even if there is a change in the management or leadership team, the organization runs in the same fashion as it was running before. This defines the culture of an organization and aids its sustenance. HR software has made the life of an HR manager effortless, which is otherwise too full of tasks which are diverse in nature. This happens probably because they manage the most dynamic resource of an organization i.e the human resource.

(5) Mobile friendly – There are many systems available who offer mobile apps or mobile-friendly websites for the easy and convenient business management which is easily accessible from your smartphone, tablet or from iPad. There is no solution which does not have an application on a mobile phone. You should also have to be noticed that what software you are going to use should be as such that it can empower your employees to self-manage with the right tools having an intuitive user interface as well. HR managers should be able to manage employees and assign, tasks to them from anywhere in the world with any device. Now-a-days, a large percentage of job seekers, use mobile devices to search the jobs and companies which are starting to use mobile as a candidate sourcing strategy and connecting mobile candidate outreach to more traditional applicant tracking systems.

Reference: http://software-solutions-platform.blogspot.com/2017/12/5-must-have-elements-to-consider-before.html

#Best Payroll Software #payroll management software #best payroll software for small business

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mayerfever · 8 years ago

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How to Raise Money?

Raising money isn’t the most important part of starting a startup. But unless you’re independently wealthy or can begin generating revenue right away it’s pretty hard to get much done without it.

These insights will turn you into a fundraising pro.

As a founder, raising venture capital is going to be one of the easiest things you do for your company. But, it’s still no picnic.

Y Combinator president Sam Altman moderated a panel at Stanford University featuring three big names in startup fundraising to talk about everything from the big picture down to the nitty gritty details of asking people for money to support your next venture.

Fundraising Stages

When startups talk about fundraising, they’re not talking about selling Girl Scout cookies.

Whether you’re knocking on the door of Silicon Valley venture capital firms or amping up for Demo Day at a startup accelerator, raising money in the startup game comes in stages.

Seed Stage

This is your initial capital used to conduct research, get patents, and generally get all the ducks in a row that you probably wouldn’t have been able to without cash flow. This will help you build a strong foundation for the next stage.

Series A (aka Venture)

With your product more streamlined and most of the company ownership still under your belt, this next phase will help you expand and hire a larger team.

Series B and C (aka Second and Third Stage)

This is a continuation of your startup financing and quest for external funds. With each round, you should be continuing to improve your product, and your pitch will follow.

After these stages, your road may take you to the bank, IPO, or acquisition, but that comes into play later. Right now, it’s time to talk Series A.

Have a Good Product

Your product and your penetrating pricing should be so good and self-sustaining that you don’t even need to raise money.

After pitching to VC firms all up and down Silicon Valley, Conrad was given the advice to “be like the Twitter guys.” That is to say, have a product so good that you don’t even need a killer pitch. Your idea can initially sustain itself without all of the cash.

In fact, that’s a trait that first attracted Conrad to the idea of Zenefits. And it turns out, that’s an attractive trait to investors as well.

If you know your market so well that your product is lean, smart, and self-sufficient, then you’ve created something with momentum that’s not dependent on cash. That’s the kind of product confidence and direction that investors look for.

As Andreessen put it, “You’re always better off making your business better than you are making your pitch better.”

The entire panel agreed that they look for the outliers — the ones whose ideas seem nuts at first (i.e. Airbnb), but they stand out as something “so crazy it just might work.”Crazy, but not without a plan, of course.

Understand Your Risks

Andreessen learned the “onion theory risk” from Andy Rachleff (co-founder and executive chairman of Wealthfront).

The idea is basically that, as a startup (especially before Seed funding), you are just layer upon layer of risk. Even after you get your first round of funding, it’s not the money that makes those risks go away, it’s what you do with it.

As you make smart decisions with your capital like finding a co-founder who’s as good or better than you, conducting research, and gathering more data, you’re achieving milestones in your business. And with each milestone, you’re peeling away a layer of risk.

Because you’re starting out with so much risk, early investors (Seed and Series A) are going to be more focused on attaining a percentage of ownership rather than something monetary. With that in mind, it’s important to manage the amount of equity you’re giving away, so that you don’t end up with only a sliver of ownership for yourself.

Andreessen sees this as a big deterrent for investors in later stages because, for a founder with little stake in the company, the drive and ambition can quickly fizzle.

Cover Your Bases

Conway broke down some technical aspects of working with investors that are obvious, yet can be easily overlooked especially by first-time entrepreneurs.

Master the One-Sentence Pitch

You should be able to sum up your product in one sentence. This is not only good for refining your own vision, it’s also a way to quickly and efficiently paint a picture of the product for an angel investor … or whoever is listening.

Don’t Procrastinate

Things move fast in the startup world. In fact, every week Conway and the team at SV Angel look at about 30 companies and only invest in one on average.

Procrastinating (especially going into fundraising) can be a huge detriment when your cash competitors are going at full speed and staying nimble.

Get It in Writing

After any important decision is made, you should send an email to the investor right away outlining what was discussed to make sure that both parties are on the same page. Conway said this small, simple step can eliminate a lot of potential controversy down the road.

#thoughtleadershipzen

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un-enfant-immature · 6 years ago

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ZeroDown is constructing a new path to home ownership

Even rich San Francisco residents can’t buy a home.

Sure, if your startup just went public, you might be amongst a small class of people able to put in all-cash offers over the asking price. But most people living in the Bay Area, even those with six-figure salaries, only aspire to become homeowners.

“Owning things is a pretty central idea to the American enterprise,” said Abhijeet Dwivedi, the co-founder and chief executive officer of ZeroDown, a new startup hoping to make home ownership in the Bay Area a reality for more people by combining the security of ownership with the flexibility of renting. “Anyone who has gotten rich in the last 240 years has done so by owning things.”

ZeroDown, as the name suggests, couples technology and a debt-fueled real estate fund to allow home-buyers to forgo the traditional down payment process required to purchase a home. The company, which charges a $10,000 fee per home, is a graduate of the Y Combinator startup accelerator’s winter cohort. Today, it’s announcing a $30 million round of capital from former YC president Sam Altman and consumer technology venture capital fund Goodwater Capital.

Earlier this year, ZeroDown had the VC community buzzing. At just a few months old, the San Francisco-based startup was already fielding offers from funds. Why? Because its founding team is made up of Dwivedi, the former chief operating officer of Zenefits; Laks Srini, Zenefits’ former chief technology officer; and Hari Viswanathan, a former Zenefits staff engineer.

Ultimately, the trio raised a bucket of capital at a valuation north of $70 million, sources confirm to TechCrunch, (the company declined to comment on its valuation). That’s quite the vote of confidence for a capital-intensive real estate business but the founders reputation preceded them and early backing from Altman, who invested before the company decided to enter YC, peaked the curiosity of early-stage VCs.

ZeroDown co-founder and chief executive officer Abhijeet Dwivedi.

“Sam Altman was the first person we called to discuss the idea … and he wanted to back the team,” Dwivedi said, noting that Altman didn’t suggest the team go through YC, rather, a desire to feel like “beginners” again inspired their decision to complete the three-month program, which is more often made up of first-time founders.

Amidst all the buzz, ZeroDown skipped out on Demo Day in March, the culminating event of YC that gives startups a couple of minutes each to entice investors into supporting their big idea. ZeroDown didn’t need to make a showy pitch. Fundraising hadn’t been and wouldn’t become a difficult process.

TechCrunch noted all this in a story earlier this year highlighting how competitive investing in YC startups can be for venture capitalists. ZeroDown may have raised at the highest valuation for a startup fresh out of YC but it certainly wasn’t the only member of the winter cohort to raise significant capital before graduating from the accelerator. Catch, Overview.AI, Truora, Middesk, Glide and FlockJay, among others, had signed term sheets before the big day, for example.

Using ZeroDown

ZeroDown seems to be serving those who have an individual or combined salary of more than $200,000, stock options and some money put away — aka not exactly your average Joe.

Here’s how the service works:

ZeroDown determines whether a potential customer qualifies, factoring in total annual income before taxes, stock grants, recurring monthly loan payments and credit.

A customer picks a qualifying home, typically one priced between $550,000 and $1,750,000. ZeroDown purchases the home.

The customer begins leasing the home from ZeroDown.

The customer is given five years to pay ZeroDown the cost of the down payment.

Every month throughout the five-year period, the customer earn purchase-credits — similar to earning stock options at a startup — that represent a percentage of their ZeroDown home’s value. If they live in the home for at least two years, they can put those credits toward purchasing the home or they can can move out after two years and redeem the purchase-credits for cash back.

If a customer reaches the five-year mark and wants to stay put, they must purchase the home at that time.

The idea is to give people more flexibility and power in the home-buying process: “It gives people time to build up more savings or get a higher salary,” Dwivedi explains. “Their buying power five years out is hopefully higher than it is today.”

ZeroDown earns money from its $10,000 price tag and through a 24/7 concierge service it provides to customers. It’s partnered with Sheltr to connect ZeroDown users to services they might need as homeowners, including a babysitter or a plumber, for example.

“It’s meaningful to give people a place to call their homes,” -ZeroDown CEO Abhijeet Dwivedi.

Under the hood, ZeroDown has two businesses running simultaneously. One is a technology startup supported by the $30 million equity financing and 20 employees. The other is a real estate fund supported by a “decent sum” of debt capital (Dwivedi declined to disclose the precise amount). This unique business structure helps ZeroDown minimize risk, he said.

“The fund has to do its job to hold the assets and provide a return and the tech company has to do its job of executing very well,” Dwivedi said. “The templates to run both of these types of businesses exist independently in the market.”

Seperately, however, things get more complicated, which is why a solution like this hasn’t come out of Silicon Valley in the past.

ZeroDown is tapping into a particular pain point, one intensified in the Bay Area where 81% of homes cost more than $1 million, according to data compiled by Trulia .

For now, ZeroDown is focused on that market but in the long term, the team hopes they can expand to new geographies and assist a wider and more diverse population of potential homeowners.

“It’s meaningful to give people a place to call their homes, a place where their memories are founded, a place where they live,” Dwivedi said.

To fund Y Combinator’s top startups, VCs scoop them before Demo Day

#TechCrunch

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un-enfant-immature · 6 years ago

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To fund Y Combinator’s top startups, VCs scoop them before Demo Day

Here are the 85+ startups that launched at YC’s W19 Demo Day 1

TechCrunch has more details on the healthtech startup’s funding, which included participation from Kleiner Perkins, the Urban Innovation Fund and the Graduate Fund.

Pre-Demo Day M&A

Hunting for the best deals

Y Combinator partners Michael Seibel and Dalton Caldwell, and moderator Josh Constine, speak onstage during TechCrunch Disrupt SF 2018. (Photo by Kimberly White/Getty Images)

Though Seibel says the majority raise in the months following Demo Day, it seems the very best investors know to be proactive about reviewing and investing in the batch before the big event.

I did not talk to a single company in this batch raising under $10M post (admittedly I only was able to speak with a fraction of the 205).

— Peter Rojas (@peterrojas) March 20, 2019

All 88 companies from Y Combinator’s W19 Demo Day 2

#TechCrunch

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