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Coinbase launches in 11 countries with crypto-to-crypto conversions only

Posted by on Apr 17, 2019 in blockchain, coinbase, cryptocurrency, Distributed Ledger | 0 comments

Coinbase has been available in 42 countries around the world before today — mostly in North America, Europe, Australia and Singapore. Today, the company is aggressively expanding by opening 11 countries at once in Latin America and South East Asia. But there’s a trick — there’s no crypto-to-fiat conversions.

Coinbase competitor Binance has taken the crypto world by storm by focusing on crypto-to-crypto conversions. You can only fund and withdraw cryptocurrencies from your Binance account. And if you want to buy some crypto assets, you need to convert crypto assets you already own. For instance, if you want to buy Litecoin, you need to convert Ethereum into Litecoin.

That strategy has paid off as it is much easier to start accepting customers in new countries if you don’t need to connect the exchange with the traditional banking infrastructure.

So Coinbase is doing the same thing and opening crypto-to-crypto conversions and trading in Argentina, Mexico, Peru, Colombia, Chile, India, Hong Kong, South Korea, Indonesia, the Philippines and New Zealand.

Eventually, the company could add crypto-to-fiat conversions in some of those new markets. “We may add fiat to crypto support depending on the different demands and requirements of each of the countries,” a Coinbase spokesperson told me.

Both Coinbase and Coinbase Pro are now available in those new countries. Coinbase also says that crypto-to-crypto transactions now represent the majority of trades on Coinbase.

This is also a great way to get started with cryptocurrencies. If somebody wants to send you some Bitcoin, you can start accepting payments on your Coinbase account. This could be interesting for cross-border payments in particular.

Coinbase supports a stablecoin called USDC. This crypto asset is directly indexed on the value of USD. So if you think the cryptocurrency market is going down, you can convert your assets into USDC to make sure the value of your assets won’t fluctuate too much. But USDC might not be available from day one in today’s new markets.

“USDC is available in most of the recently supported countries through Coinbase Pro. As we continue to receive feedback from our customers, we’ll support USDC in more markets and platforms based on what will offer them the best trading experience,” a Coinbase spokesperson told me.

Disclosure: I own small amounts of various cryptocurrencies.


Source: The Tech Crunch

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Venture investors and startup execs say they don’t need Elizabeth Warren to defend them from big tech

Posted by on Mar 8, 2019 in Amazon, AT&T, ben narasin, chief technology officer, coinbase, Companies, economy, elizabeth warren, entrepreneurship, Facebook, Federal Trade Commission, Google, IBM, kara nortman, Los Angeles, Microsoft, new enterprise associates, Private Equity, Social Media, Startup company, TC, Technology, Technology Development, United States, upfront ventures, us government, venky ganesan, Venture Capital, Walmart, world wide web, zappos | 0 comments

Responding to Elizabeth Warren’s call to regulate and break up some of the nation’s largest technology companies, the venture capitalists that invest in technology companies are advising the presidential hopeful to move slowly and not break anything.

Warren’s plan called for regulators to be appointed to oversee the unwinding of several acquisitions that were critical to the development of the core technology that make Alphabet’s Google and the social media giant Facebook so profitable… and Zappos.

Warren also wanted regulation in place that would block companies making over $25 billion that operate as social media or search platforms or marketplaces from owning companies that also sell services on those marketplaces.

As a whole, venture capitalists viewing the policy were underwhelmed.

“As they say on Broadway, ‘you gotta have a gimmick’ and this is clearly Warren’s,” says Ben Narasin, an investor at one of the nation’s largest investment firms,” New Enterprise Associates, which has $18 billion in assets under management and has invested in consumer companies like Jet, an online and mobile retailer that competed with Amazon and was sold to Walmart for $3.3 billion.

“Decades ago, at the peak of Japanese growth as a technology competitor on the global stage, the US government sought to break up IBM . This is not a new model, and it makes no sense,” says Narasin. “We slow down our country, our economy and our ability to innovate when the government becomes excessively aggressive in efforts to break up technology companies, because they see them through a prior-decades lens, when they are operating in a future decade reality. This too shall pass.”

Balaji Sirinivasan, the chief technology officer of Coinbase, took to Twitter to offer his thoughts on the Warren plan. “If big companies like Google, Facebook and Amazon are prevented from acquiring startups, that actually reduces competition,” Sirinivasan writes.

“There are two separate issues here that are being conflated. One issue is do we need regulation on the full platform companies. And the answer is absolutely,” says Venky Ganesan, the managing director of Menlo Ventures. “These platforms have a huge impact on society at large and they have huge influence.”

But while the platforms need to be regulated, Ganesan says, Senator Warren’s approach is an exercise in overreach.

“That plan is like taking a bazooka to a knife fight. It’s overwhelming and it’s not commensurate with the issues,” Ganesan says. “I don’t think at the end of the day venture capital is worrying about competition from these big platform companies. [And] as the proposal is composed it would create more obstacles rather than less.”

Using Warren’s own example of the antitrust cases that were brought against companies like AT&T and Microsoft, is a good model for how to proceed, Ganesan says. “We want to have the technocrats at the FTC figure out the right way to bring balance.”

Kara Nortman, a partner with the Los Angeles-based firm Upfront Ventures, is also concerned about the potential unforeseen consequences of Warren’s proposals.

“The specifics of the policy as presented strike me as having potentially negative consequences for innovation, These companies are funding massive innovation initiatives in our country. They’re creating jobs and taking risks in areas of technology development where we could potentially fall behind other countries and wind up reducing our quality of life,” Nortman says. “We’re not seeing that innovation or initiative come from the government – or that support for encouraging immigration and by extension embracing the talented foreign entrepreneurs that could develop new technologies and businesses.”

Nortman sees the Warren announcement as an attempt to start a dialogue between government regulators and big technology companies.

“My hope is that this is the beginning of a dialogue that is constructive,” Nortman says. “And since Elizabeth Warren is a thoughtful policymaker this is likely the first salvo toward an engagement with the technology community to work collaboratively on issues that we all want to see solved and that some of us are dedicating our career in venture to help solving.”


Source: The Tech Crunch

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XRP is the latest cryptocurrency to hit Coinbase Pro

Posted by on Feb 25, 2019 in coinbase, cryptocurrency, Ripple, TC, xrp | 0 comments

On Tuesday, Coinbase announced that XRP will be the latest cryptocurrency to hit its pro-level trading platform. Coinbase Pro will allow users to transfer XRP to the platform right away (“After 10am on February 25”) but there will be at least a 12-hour delay before trading is enabled.

Support for XRP will be available for users in the U.S. (though not those in New York state), the U.K., Canada, Singapore, Australia and the EU. As one of the most controversial cryptocurrencies around, the addition of Ripple’s XRP is sure to stir up the institutional banking coin’s hot-blooded armies of supporters and detractors. The cryptocurrency has faced ongoing criticism for its centralized nature and its perceived lack of use beyond cross-border payments by financial institutions.

“Once sufficient supply of XRP is established on the platform, trading on the XRP/USD, XRP/EUR, and XRP/BTC order books will start in phases, beginning with post-only mode and proceeding to full trading should our metrics for a healthy market be met,” the company said in its announcement.

For now, XRP will be limited to Coinbase Pro, Coinbase’s feature-rich platform previously known as GDAX. The company declined to specify when XRP would hit the regular Coinbase platform, though in the past those additions have often followed Coinbase Pro by a few weeks.

Last year, Coinbase began expanding its previously spartan coin offerings to include a much wider selection of offerings beyond its longtime support for Bitcoin, Litecoin, Ethereum and a small handful of other offerings derived from those core coins. XRP is the third largest cryptocurrency by market cap, trailing Bitcoin and Ethereum.


Source: The Tech Crunch

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Airbnb, Automattic and Pinterest top rank of most acquisitive unicorns

Posted by on Feb 23, 2019 in Aileen Lee, Airbnb, Automattic, blockspring, coinbase, Column, Commuting, cowboy ventures, CrunchBase, Docker, flatiron school, Italy, Lyft, M&A, neologisms, Neutrino, Pinterest, Sprinklr, Startups, SurveyMonkey, TC, transport, Uber, unicorn, unity-technologies, Venture Capital, vox media, WeWork | 0 comments

It takes a lot more than a good idea and the right timing to build a billion-dollar company. Talent, focus, operational effectiveness and a healthy dose of luck are all components of a successful tech startup. Many of the most successful (or, at least, highest-valued) tech unicorns today didn’t get there alone.

Mergers and acquisitions (M&A) can be a major growth vector for rapidly scaling, highly valued technology companies. It’s a topic that we’ve covered off and on since the very first post on Crunchbase News in March 2017. Nearly two years later, we wanted to revisit that first post because things move quickly, and there is a new crop of companies in the unicorn spotlight these days. Which ones are the most active in the M&A market these days?

The most acquisitive U.S. unicorns today

Before displaying the U.S. unicorns with the most acquisitions to date, we first have to answer the question, “What is a unicorn?” The term is generally applied to venture-backed technology companies that have earned a valuation of $1 billion or more. Crunchbase tracks these companies in its Unicorns hub. The original definition of the term, first applied in a VC setting by Aileen Lee of Cowboy Ventures back in late 2011, specifies that unicorns were founded in or after 2003, following the first tech bubble. That’s the working definition we’ll be using here.

In the chart below, we display the number of known acquisitions made by U.S.-based unicorns that haven’t gone public or gotten acquired (yet). Keep in mind this is based on a snapshot of Crunchbase data, so the numbers and ranking may have changed by the time you read this. To maintain legibility and a reasonable size, we cut off the chart at companies that made seven or more acquisitions.

As one would expect, these rankings are somewhat different from the one we did two years ago. Several companies counted back in early March 2017 have since graduated to public markets or have been acquired.

Who’s gone?

Dropbox, which had acquired 23 companies at the time of our last analysis, went public weeks later and has since acquired two more companies (HelloSign for $230 million in late January 2019 and Verst for an undisclosed sum in November 2017) since doing so. SurveyMonkey, which went public in September 2018, made six known acquisitions before making its exit via IPO.

Who stayed?

Which companies are still in the top ranks? Travel accommodations marketplace giant Airbnb jumped from number four to claim Dropbox’s vacancy as the most acquisitive private U.S. unicorn in the market. Airbnb made six more acquisitions since March 2017, most recently Danish event space and meeting venue marketplace Gaest.com. The still-pending deal was announced in January 2019.

WordPress developer and hosting company Automattic is still ranked number two. Automattic <a href=”https://www.crunchbase.com/acquisition/automattic-acquires-atavist–912abccd”>acquired one more company — digital publication platform Atavist — since we last profiled unicorn M&A. Open-source software containerization company Docker, photo-sharing and search site Pinterest, enterprise social media management company Sprinklr and venture-backed media company Vox Media remain, as well.

Who’s new?

There are some notable newcomers in these rankings. We’ll focus on the most notable three: The We CompanyCoinbase and Lyft. (Honorable mention goes to Stripe and Unity Technologies, which are also new to this list.)

The We Company (the holding entity for WeWork) has made 10 acquisitions over the past two years. Earlier this month, The We Company bought Euclid, a company that analyzes physical space utilization and tracks visitors using Wi-Fi fingerprinting. Other buyouts include Meetup (a story broken by Crunchbase News in November 2017) reportedly for $200 million. Also in late 2017, The We Company acquired coding and design training program Flatiron School, giving the company a permanent tenant in some of its commercial spaces.

In its bid to solidify its position as the dominant consumer cryptocurrency player, Coinbase has been on quite the M&A tear lately. The company recently announced its plans to acquire Neutrino, a blockchain analytics and intelligence platform company based in Italy. As we covered, Coinbase likely made the deal to improve its compliance efforts. In January, Coinbase acquired data analysis company Blockspring, also for an undisclosed sum. The crypto company’s other most notable deal to date was its April 2018 buyout of the bitcoin mining hardware turned cryptocurrency micro-transaction platform Earn.com, which Coinbase acquired for $120 million.

And finally, there’s Lyft, the more exclusively U.S.-focused ride-hailing and transportation service company. Lyft has made 10 known acquisitions since it was founded in 2012. Its latest M&A deal was urban bike service Motivate, which Lyft acquired in June 2018. Lyft’s principal rival, Uber, has acquired six companies at the time of writing. Uber bought a bike company of its own, JUMP Bikes, at a price of $200 million, a couple of months prior to Lyft’s Motivate purchase. Here too, the Lyft-Uber rivalry manifests in structural sameness. Fierce competition drove Uber and Lyft to raise money in lock-step with one another, and drove M&A strategy as well.

What to take away

With long-term business success, it’s often a chicken-and-egg question. Is a company successful because of the startups it bought along the way? Or did it buy companies because it was successful and had an opening to expand? Oftentimes, it’s a little of both.

The unicorn companies that dominate the private funding landscape today (if not in the number of deals, then in dollar volume for sure) continue to raise money in the name of growth. Growth can come the old-fashioned way, by establishing a market position and expanding it. Or, in the name of rapid scaling and ostensibly maximizing investor returns, M&A provides a lateral route into new markets or a way to further entrench the status quo. We’ll see how that strategy pays off when these companies eventually find the exit door .


Source: The Tech Crunch

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How students are founding, funding and joining startups

Posted by on Feb 6, 2019 in Accel, Accel Scholars, Alumni Ventures Group, Amanda Bradford, Artificial Intelligence, Bill Gates, boston, coinbase, Column, CRM, CrunchBase, distributed systems, Dorm Room Fund, Drew Houston, Dropbox, editor-in-chief, Energy, entrepreneurship, Facebook, Finance, FiscalNote, Forward, General Catalyst, Graduate Fund, greylock, harvard, Jeremy Liew, Kleiner Perkins, lightspeed, Mark Zuckerberg, MIT, Pear Ventures, peter boyce, Pinterest, Private Equity, Series A, stanford, Start-Up Chile, Startup company, Startups, TC, TechStars, True Ventures, Ubiquity6, uc-berkeley, United States, upenn, Venture Capital, venture capital Firms, Warby Parker, Y Combinator | 0 comments

There has never been a better time to start, join or fund a startup as a student. 

Young founders who want to start companies while still in school have an increasing number of resources to tap into that exist just for them. Students that want to learn how to build companies can apply to an increasing number of fast-track programs that allow them to gain valuable early stage operating experience. The energy around student entrepreneurship today is incredible. I’ve been immersed in this community as an investor and adviser for some time now, and to say the least, I’m continually blown away by what the next generation of innovators are dreaming up (from Analytical Space’s global data relay service for satellites to Brooklinen’s reinvention of the luxury bed).

Bill Gates in 1973

First, let’s look at student founders and why they’re important. Student entrepreneurs have long been an important foundation of the startup ecosystem. Many students wrestle with how best to learn while in school —some students learn best through lectures, while more entrepreneurial students like author Julian Docks find it best to leave the classroom altogether and build a business instead.

Indeed, some of our most iconic founders are Microsoft’s Bill Gates and Facebook’s Mark Zuckerberg, both student entrepreneurs who launched their startups at Harvard and then dropped out to build their companies into major tech giants. A sample of the current generation of marquee companies founded on college campuses include Snap at Stanford ($29B valuation at IPO), Warby Parker at Wharton (~$2B valuation), Rent The Runway at HBS (~$1B valuation), and Brex at Stanford (~$1B valuation).

Some of today’s most celebrated tech leaders built their first ventures while in school — even if some student startups fail, the critical first-time founder experience is an invaluable education in how to build great companies. Perhaps the best example of this that I could find is Drew Houston at Dropbox (~$9B valuation at IPO), who previously founded an edtech startup at MIT that, in his words, provided a: “great introduction to the wild world of starting companies.”

Student founders are everywhere, but the highest concentration of venture-backed student founders can be found at just 5 universities. Based on venture fund portfolio data from the last six years, Harvard, Stanford, MIT, UPenn, and UC Berkeley have produced the highest number of student-founded companies that went on to raise $1 million or more in seed capital. Some prospective students will even enroll in a university specifically for its reputation of churning out great entrepreneurs. This is not to say that great companies are not being built out of other universities, nor does it mean students can’t find resources outside a select number of schools. As you can see later in this essay, there are a number of new ways students all around the country can tap into the startup ecosystem. For further reading, PitchBook produces an excellent report each year that tracks where all entrepreneurs earned their undergraduate degrees.

Student founders have a number of new media resources to turn to. New email newsletters focused on student entrepreneurship like Justine and Olivia Moore’s Accelerated and Kyle Robertson’s StartU offer new channels for young founders to reach large audiences. Justine and Olivia, the minds behind Accelerated, have a lot of street cred— they launched Stanford’s on-campus incubator Cardinal Ventures before landing as investors at CRV.

StartU goes above and beyond to be a resource to founders they profile by helping to connect them with investors (they’re active at 12 universities), and run a podcast hosted by their Editor-in-Chief Johnny Hammond that is top notch. My bet is that traditional media will point a larger spotlight at student entrepreneurship going forward.

New pools of capital are also available that are specifically for student founders. There are four categories that I call special attention to:

  • University-affiliated accelerator programs
  • University-affiliated angel networks
  • Professional venture funds investing at specific universities
  • Professional venture funds investing through student scouts

While it is difficult to estimate exactly how much capital has been deployed by each, there is no denying that there has been an explosion in the number of programs that address the pre-seed phase. A sample of the programs available at the Top 5 universities listed above are in the graphic below — listing every resource at every university would be difficult as there are so many.

One alumni-centric fund to highlight is the Alumni Ventures Group, which pools LP capital from alumni at specific universities, then launches individual venture funds that invest in founders connected to those universities (e.g. students, alumni, professors, etc.). Through this model, they’ve deployed more than $200M per year! Another highlight has been student scout programs — which vary in the degree of autonomy and capital invested — but essentially empower students to identify and fund high-potential student-founded companies for their parent venture funds. On campuses with a large concentration of student founders, it is not uncommon to find student scouts from as many as 12 different venture funds actively sourcing deals (as is made clear from David Tao’s analysis at UC Berkeley).

Investment Team at Rough Draft Ventures

In my opinion, the two institutions that have the most expansive line of sight into the student entrepreneurship landscape are First Round’s Dorm Room Fund and General Catalyst’s Rough Draft VenturesSince 2012, these two funds have operated a nationwide network of student scouts that have invested $20K — $25K checks into companies founded by student entrepreneurs at 40+ universities. “Scout” is a loose term and doesn’t do it justice — the student investors at these two funds are almost entirely autonomous, have built their own platform services to support portfolio companies, and have launched programs to incubate companies built by female founders and founders of color. Another student-run fund worth noting that has reach beyond a single region is Contrary Capital, which raised $2.2M last year. They do a particularly great job of reaching founders at a diverse set of schools — their network of student scouts are active at 45 universities and have spoken with 3,000 founders per year since getting started. Contrary is also testing out what they describe as a “YC for university-based founders”. In their first cohort, 100% of their companies raised a pre-seed round after Contrary’s demo day. Another even more recently launched organization is The MBA Fund, which caters to founders from the business schools at Harvard, Wharton, and Stanford. While super exciting, these two funds only launched very recently and manage portfolios that are not large enough for analysis just yet.

Over the last few months, I’ve collected and cross-referenced publicly available data from both Dorm Room Fund and Rough Draft Ventures to assess the state of student entrepreneurship in the United States. Companies were pulled from each fund’s portfolio page, then checked against Crunchbase for amount raised, accelerator participation, and other metrics. If you’d like to sift through the data yourself, feel free to ping me — my email can be found at the end of this article. To be clear, this does not represent the full scope of investment activity at either fund — many companies in the portfolios of both funds remain confidential and unlisted for good reasons (e.g. startups working in stealth). In fact, the In addition, data for early stage companies is notoriously variable in quality, even with Crunchbase. You should read these insights as directional only, given the debatable confidence interval. Still, the data is still interesting and give good indicators for the health of student entrepreneurship today.

Dorm Room Fund and Rough Draft Ventures have invested in 230+ student-founded companies that have gone on to raise nearly $1 billion in follow on capital. These funds have invested in a diverse range of companies, from govtech (e.g. mark43, raised $77M+ and FiscalNote, raised $50M+) to space tech (e.g. Capella Space, raised ~$34M). Several portfolio companies have had successful exits, such as crypto startup Distributed Systems (acquired by Coinbase) and social networking startup tbh (acquired by Facebook). While it is too early to evaluate the success of these funds on a returns basis (both were launched just 6 years ago), we can get a sense of success by evaluating the rates by which portfolio companies raise additional capital. Taken together, 34% of DRF and RDV companies in our data set have raised $1 million or more in seed capital. For a rough comparison, CB Insights cites that 40% of YC companies and 48% of Techstars companies successfully raise follow on capital (defined as anything above $750K). Certainly within the ballpark!

Source: Crunchbase

Dorm Room Fund and Rough Draft Ventures companies in our data set have an 11–12% rate of survivorship to Series A. As a benchmark, a previous partner at Y Combinator shared that 20% of their accelerator companies raise Series A capital (YC declined to share the official figure, but it’s likely a stat that is increasing given their new Series A support programs. For further reading, check out YC’s reflection on what they’ve learned about helping their companies raise Series A funding). In any case, DRF and RDV’s numbers should be taken with a grain of salt, as the average age of their portfolio companies is very low and raising Series A rounds generally takes time. Ultimately, it is clear that DRF and RDV are active in the earlier (and riskier) phases of the startup journey.

Dorm Room Fund and Rough Draft Ventures send 18–25% of their portfolio companies to Y Combinator or Techstars. Given YC’s 1.5% acceptance rate as reported in Fortune, this is quite significant! Internally, these two funds offer founders an opportunity to participate in mock interviews with YC and Techstars alumni, as well as tap into their communities for peer support (e.g. advice on pitch decks and application content). As a result, Dorm Room Fund and Rough Draft Ventures regularly send cohorts of founders to these prestigious accelerator programs. Based on our data set, 17–20% of DRF and RDV companies that attend one of these accelerators end up raising Series A venture financing.

Source: Crunchbase

Dorm Room Fund and Rough Draft Ventures don’t invest in the same companies. When we take a deeper look at one specific ecosystem where these two funds have been equally active over the last several years — Boston — we actually see that the degree of investment overlap for companies that have raised $1M+ seed rounds sits at 26%. This suggests that these funds are either a) seeing different dealflow or b) have widely different investment decision-making.

Source: Crunchbase

Dorm Room Fund and Rough Draft Ventures should not just be measured by a returns-basis today, as it’s too early. I hypothesize that DRF and RDV are actually encouraging more entrepreneurial activity in the ecosystem (more students decide to start companies while in school) as well as improving long-term founder outcomes amongst students they touch (portfolio founders build bigger and more successful companies later in their careers). As more students start companies, there’s likely a positive feedback loop where there’s increasing peer pressure to start a company or lean on friends for founder support (e.g. feedback, advice, etc).Both of these subjects warrant additional study, but it’s likely too early to conduct these analyses today.

Dorm Room Fund and Rough Draft Ventures have impressive alumni that you will want to track. 1 in 4 alumni partners are founders, and 29% of these founder alumni have raised $1M+ seed rounds for their companies. These include Anjney Midha’s augmented reality startup Ubiquity6 (raised $37M+), Shubham Goel’s investor-focused CRM startup Affinity (raised $13M+), Bruno Faviero’s AI security software startup Synapse (raised $6M+), Amanda Bradford’s dating app The League (raised $2M+), and Dillon Chen’s blockchain startup Commonwealth Labs (raised $1.7M). It makes sense to me that alumni from these communities that decide to start companies have an advantage over their peers — they know what good companies look like and they can tap into powerful networks of young talent / experienced investors.

Beyond Dorm Room Fund and Rough Draft Ventures, some venture capital firms focus on incubation for student-founded startups. Credit should first be given to Lightspeed for producing the amazing Summer Fellows bootcamp experience for promising student founders — after all, Pinterest was built there! Jeremy Liew gives a good overview of the program through his sit-down interview with Afterbox’s Zack Banack. Based on a study they conducted last year, 40% of Lightspeed Summer Fellows alumni are currently active founders. Pear Ventures also has an impressive summer incubator program where 85% of its companies successfully complete a fundraise. Index Ventures is the latest to build an incubator program for student founders, and even accepts founders who want to work on an idea part-time while completing a summer internship.

Let’s now look at students who want to join a startup before founding one. Venture funds have historically looked to tap students for talent, and are expanding the engagement lifecycle. The longest running programs include Kleiner Perkins’<strong class=”m_1196721721246259147gmail-markup–strong m_1196721721246259147gmail-markup–p-strong”> KP Fellows and True Ventures’ TEC Fellows, which focus on placing the next generation’s most promising product managers, engineers, and designers into the portfolio companies of their parent venture funds.

There’s also the secretive Greylock X, a referral-based hand-picked group of the best student engineers in Silicon Valley (among their impressive alumni are founders like Yasyf Mohamedali and Joe Kahn, the folks behind First Round-backed Karuna Health). As these programs have matured, these firms have recognized the long-run value of engaging the alumni of their programs.

More and more alumni are “coming back” to the parent funds as entrepreneurs, like KP Fellow Dylan Field of Figma (and is also hosting a KP Fellow, closing a full circle loop!). Based on their latest data, 10% of KP Fellows alumni are founders — that’s a lot given the fact that their community has grown to 500! This helps explain why Kleiner Perkins has created a structured path to receive $100K in seed funding to companies founded by KP Fellow alumni. It looks like venture funds are beginning to invest in student programs as part of their larger platform strategy, which can have a real impact over the long term (for further reading, see this analysis of platform strategy outcomes by USV’s Bethany Crystal).

KP Fellows in San Francisco

Venture funds are doubling down on student talent engagement — in just the last 18 months, 4 funds have launched student programs. It’s encouraging to see new funds follow in the footsteps of First Round, General Catalyst, Kleiner Perkins, Greylock, and Lightspeed. In 2017, Accel launched their Accel Scholars program to engage top talent at UC Berkeley and Stanford. In 2018, we saw 8VC Fellows, NEA Next, and Floodgate Insiders all launch, targeting elite universities outside of Silicon Valley. Y Combinator implemented Early Decision, which allows student founders to apply one batch early to help with academic scheduling. Most recently, at the start of 2019, First Round launched the Graduate Fund (staffed by Dorm Room Fund alumni) to invest in founders who are recent graduates or young alumni.

Given more time, I’d love to study the rates by which student founders start another company following investments from student scout funds, as well as whether or not they’re more successful in those ventures. In any case, this is an escalation in the number of venture funds that have started to get serious about engaging students — both for talent and dealflow.

Student entrepreneurship 2.0 is here. There are more structured paths to success for students interested in starting or joining a startup. Founders have more opportunities to garner press, seek advice, raise capital, and more. Venture funds are increasingly leveraging students to help improve the three F’s — finding, funding, and fixing. In my personal view, I believe it is becoming more and more important for venture funds to gain mindshare amongst the next generation of founders and operators early, while still in school.

I can’t wait to see what’s next for student entrepreneurship in 2019. If you’re interested in digging in deeper (I’m human — I’m sure I haven’t covered everything related to student entrepreneurship here) or learning more about how you can start or join a startup while still in school, shoot me a note at sxu@dormroomfund.comA massive thanks to Phin Barnes, Rei Wang, Chauncey Hamilton, Peter Boyce, Natalie Bartlett, Denali Tietjen, Eric Tarczynski, Will Robbins, Jasmine Kriston, Alicia Lau, Johnny Hammond, Bruno Faviero, Athena Kan, Shohini Gupta, Alex Immerman, Albert Dong, Phillip Hua-Bon-Hoa, and Trevor Sookraj for your incredible encouragement, support, and insight during the writing of this essay.


Source: The Tech Crunch

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Coinbase acquihires San Francisco startup Blockspring

Posted by on Jan 17, 2019 in Andreessen Horowitz, AOL, api, author, ceo, coinbase, CrunchBase, cryptocurrencies, cryptocurrency, disclosure, funding, Fundings & Exits, Information technology, Keystone Capital, San Francisco, TC, TechCrunch, Technology, world wide web, Y Combinator | 0 comments

Coinbase is continuing its push to suck up talent after the $8 billion-valued crypto business snapped up Blockspring, a San Francisco-based startup that enables developers to collect and process data from APIs.

The undisclosed deal was announced by Blockspring on its blog, and confirmed to TechCrunch by a Coinbase representative. Coinbase declined to comment further.

Blockspring started out as a serverless data business, but it pivoted into a service that lets companies use API data. That includes purposes such as building list and repositories for recruitment, marketing sales, reporting and more. Pricing starts from $29 per month and Blockspring claims to work with “thousands” of companies.

That startup graduated Y Combinator and, according to Crunchbase, it had raised $3.5 million from investors that include SV Angel and A16z, both of which are Coinbase investors. Those common investors are likely a key reason for the deal, which appears to be a talent acquisition. The Blockspring team will join Coinbase, but it will continue to offer its existing products “for current and new customers as they always have.”

“Joining Coinbase was a no-brainer for a number reasons including its commitment to establishing an open financial system and the strength of its engineering team, led by Tim Wagner (formerly of AWS Lambda). Making the technical simple and accessible is what we’ve always been about at Blockspring. And now we’ll get to push these goals forward along with the talented folks at Coinbase to make something greater than we could on our own,” wrote CEO Paul Katsen.

Coinbase raised $300 million last October to take it to $525 million raised to date from investors. While it may not be a huge one, the Blockspring deal looks to be its eleventh acquisition, according to data from Crunchbase. Most of those have been talent grabs, but its more substantial pieces of M&A have included the $120 million-plus deal for Earn.com, which installed Balaji Srinivasan as the company’s first CTO, the acquisition of highly-rated blockchain browser Cipher, and the purchase of securities dealer Keystone Capital, which boosted its move into security tokens.

In addition to buying up companies, Coinbase also makes investments via its early-stage focused Coinbase Ventures fund.

Disclosure: The author owns a small amount of cryptocurrency. Enough to gain an understanding, not enough to change a life.


Source: The Tech Crunch

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Cap table management tool Carta valued at $800M with new funding

Posted by on Dec 27, 2018 in arjun sethi, Brex, coinbase, Finance, funding, Henry Ward, JONATHAN HSU, menlo ventures, Spark Capital, Startups, Tribe Capital, Union Square Ventures, Venture Capital, Wealthfront | 0 comments

Startups supporting startups are blazing a new trail with support from venture capitalists.

Co-working spaces like The Wing and The Riveter raked in funding rounds this year, as did Brex, the provider of a corporate card built specifically for startups. Now Carta, which helps companies manage their cap tables, valuations, portfolio investments and equity plans, has announced an $80 million Series D at a valuation of $800 million. The company, formerly known as eShares, raised the capital from lead investors Meritech and Tribe Capital, with support from existing investors.

The round brings Carta’s total funding to $147.8 million. Its existing investors include Spark Capital, Menlo Ventures, Union Square Ventures and Social Capital, though the latter didn’t participate in the Series D funding. Tribe Capital, however, is a new venture capital firm launched by Arjun Sethi, who previously led Social Capital’s investment in Carta, Jonathan Hsu and Ted Maidenberg, a trio of former Social Capital partners who exited the VC firm amid its transition from a traditional VC fund to a technology holding company. Tribe is said to be in the process of raising its own $200 million debut fund.

Founded in 2012 by Henry Ward (pictured), the Palo Alto-based company plans to use the latest investment to develop their transfer agent and equity administration products and services to better support startups transitioning into public companies. It also will launch additional products for investors to collect data from their portfolio companies and to manage their back office.

“We’ve come this far by changing how ownership management works for private companies—popularizing electronic securities and cap table software, combined with audit-ready 409As,” Ward wrote in an announcement. “But our ambitions go far beyond supporting privately-held, venture-backed companies.”

Carta, which counts Robinhood, Slack, Wealthfront, Squarespace, Coinbase and more as customers, currently manages $500 billion in equity. This year, Carta expanded its headcount from 310 employees to 450 employees, launched board management and portfolio insights products and completed a study in partnership with #Angels that highlighted the major equity gap female startup employees are victim to.

The study, released in September, revealed that women own just 9 percent of founder and employee startup equity, despite making up 35 percent of startup equity-holding employees. On top of that, women account for 13 percent of startup founders, but just 6 percent of founder equity — or $0.39 on the dollar.


Source: The Tech Crunch

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Coinbase’s Earn.com becomes a crypto webinar with crypto rewards

Posted by on Dec 19, 2018 in 0x, blockchain, coinbase, cryptocurrency, Startups | 0 comments

Coinbase acquired Earn.com for at least $120 million back in April. And the company now plans to transform Earn.com into Coinbase Earn, a website with educational content to learn more about cryptocurrencies. Users who complete those classes will earn tokens.

Coinbase bought Earn.com partly so that it could appoint Earn.com co-founder and CEO Balaji Srinivasan as Coinbase’s CTO. The previous iteration of Earn.com wasn’t a priority for Coinbase.

Earn.com started as a service where you can contact busy people for a small fee. Busy people would get paid in cryptocurrencies to accept those requests. The platform quickly became a way to massively contact Earn.com’s user base for initial coin offerings and airdrops.

Coinbase Earn is launching today in private beta. But at the time of this article, the new Coinbase Earn service is not live (Update: Coinbase Earn is now live and is a separate website from Earn.com). Some Coinbase users will receive an invitation to the service. The company says that educational content will go beyond Bitcoin and Ethereum. Developing education pages for obscure cryptocurrencies makes sense as Coinbase plans to add dozens of cryptocurrencies over the coming months.

At first, there is just one track. Users can learn more about 0x (ZRX), a protocol that lets you create decentralized exchanges. Cryptocurrency trades can be executed without a centralized exchange thanks to 0x .

0x content includes video lessons and quizzes — and yes, writing this makes me feel like it’s 2005 and webinars are cool again. Even if you’re not invited to Coinbase Earn, you can view the content. But those who are part of Coinbase Earn will receive a small amount of ZRX at the end of the track.

Coinbase had previously launched a learning hub to understand the basics of cryptocurrencies.

Disclosure: I own small amounts of various cryptocurrencies.


Source: The Tech Crunch

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Opera brings a flurry of crypto features to its Android mobile browser

Posted by on Dec 13, 2018 in android, api, Apps, author, Bitcoin, blockchain, blockchains, coinbase, computing, cryptocurrencies, cryptocurrency, cryptokitties, decentralization, ethereum, joseph lubin, note, Software, Technology | 0 comments

Crypto markets may be down down down, but that isn’t stopping Opera’s crypto features — first released in beta in July — from rolling out to all users of its core mobile browser today as the company bids to capture the ‘decentralized internet’ flag early on.

Opera — the world’s fifth most-used browser, according to Statcounter — released the new Opera Browser for Android that includes a built-in crypto wallet for receiving and sending Bitcoin and other tokens, while it also allows for crypto-based commerce where supported. So on e-commerce sites that accept payment via Coinbase Commerce, or other payment providers, Opera users can buy using a password or even their fingerprint.

Those are the headline features that’ll get the most use in the here and now, but Opera is also talking up its support for “Web 3.0” — the so-called decentralized internet of the future based on blockchain technology.

For that, Opera has integrated the Ethereum web3 API which will allow users of the browser to access decentralized apps (dapps) based on Ethereum. There’s also token support for Cryptokitties, the once-hot collectible game that seemingly every single decentralized internet product works with in one way or another.

But, to be quite honest, there really isn’t much to see or use on Web 3.0 right now, the big bet is that there will be in the future.

Ethereum, like other cryptocurrencies, in a funk right now thanks to the bearish crypto market, but the popular refrain from developers is that low season is a good time to build. Well, Opera has just shipped the means to access Ethereum dapps, will the community respond and give people a reason to care?

Pessimism aside, this launch is notable because it has the potential to get blockchain-based tech into the daily habits of “millions” of people, Charles Hamel — Opera’s product lead for crypto — told TechCrunch over email.

While Opera can’t match the user base of Apple’s Safari or Google Chrome — both of which have the advantage of bundling a browser with a mobile OS — Opera does have a very loyal following, which makes this release one of the most impactful blockchain launches to date.

Note: The author owns a small amount of cryptocurrency. Enough to gain an understanding, not enough to change a life.


Source: The Tech Crunch

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Coinbase abandons its cautious approach with plan to list up to 30 new cryptocurrencies

Posted by on Dec 8, 2018 in ADA, author, Bitcoin, blockchain, brian armstrong, ceo, coinbase, cryptocurrencies, cryptocurrency, currency, digital currencies, economy, mainframe, money, note, San Francisco, Storj, TC, TechCrunch Disrupt, U.S. Securities and Exchange Commission, United States | 0 comments

Coinbase is the most conservative exchange in cryptoland, largely because it operates in the U.S. under the watchful eye of the SEC. The $8 billion-valued company trades fewer than ten cryptocurrencies to consumers but on Friday announced it announced a major expansion that could see it list up to 30 new tokens.

The company said it is considering support Ripple’s XRP, EOS — the Ethereum challenger that held a year-long ICO that raised $4 billion — Stellar, a creation from a Ripple co-founder, chat app Kik’s Kin token and more.

The full list is below:

Cardano (ADA), Aeternity (AE), Aragon (ANT), Bread Wallet (BRD), Civic (CVC), Dai (DAI), district0x (DNT), EnjinCoin (ENJ), EOS (EOS), Golem Network (GNT), IOST (IOST), Kin (KIN), Kyber Network (KNC), ChainLink (LINK), Loom Network (LOOM), Loopring (LRC), Decentraland (MANA), Mainframe (MFT), Maker (MKR), NEO (NEO), OmiseGo (OMG), Po.et (POE), QuarkChain (QKC), Augur (REP), Request Network (REQ), Status (SNT), Storj (STORJ), Stellar (XLM), XRP (XRP), Tezos (XTZ), and Zilliqa (ZIL)

The company last announced new asset explorations in July, although today it did add four new ERC tokens to its pro service.

Coinbase recently revamped its policy on new token listings. Instead of abruptly adding new assets, a process that sent their valuations spiking along with rumors of inside trading, it now goes public with its intention to “explore” the potential to list new assets in order to lower the impact of a listing. It also doesn’t guarantee which, if any, will make it through and be listed.

“Adding new assets requires significant exploratory work from both a technical and compliance standpoint, and we cannot guarantee that all the assets we are evaluating will ultimately be listed for trading,” the company said.

Support for tokens is pretty nuanced. Coinbase lists some assets on its professional service only, with just nine supported on its regular consumer-facing exchange — those are Bitcoin, Bitcoin Cash, Ethereum, Ethereum Classic, Litecoin, Zcash, USD Coin, 0x and Basic Attention Token.

The company may also introduce some tokens on a state by state basis in the U.S. in order to comply with laws.

Brian Armstrong told the audience at Disrupt San Francisco that Coinbase could list “millions” of cryptocurrencies in the future

Coinbase is looking into this glut of new tokens — some of which, it must be said, are fairly questionable as projects let alone operating with uncertain legal status — at a time when the market is down significantly from its peak in January, both in terms of trading volume and market valuations.

In recent weeks, sources at a number of top exchanges have told TechCrunch that trading-related revenues are down as much as 50 percent over recent months and, while the numbers for Coinbase aren’t clear, there’s no doubt that its revenue is taking a big hit during this ‘crypto winter.’ That makes it easy to argue that Coinbase is widening its selection to increase potential volumes and, in turn, its revenue — particularly since it just raised $300 million from investors at a massive $8 billion valuation.

Coinbase defenders, however, will argue that a greater selection has long been the plan.

Ignoring the reasons, that’s certainly true. It is well known that the company wants to massively increase the number of cryptocurrencies that it supports.

CEO Brian Armstrong said as much as our TechCrunch Disrupt event in San Francisco in October, where he sketched out the company’s plan to be the New York Stock Exchange of crypto.

“It makes sense that any company out there who has a cap table… should have their own token. Every open source project, every charity, potentially every fund or these new types of decentralized organizations [and] apps, they’re all going to have their own tokens. We want to be the bridge all over the world where people come and they take fiat currency and they can get it into these different cryptocurrencies,” he said during an on-stage interview at the event.

That tokenized future could see Coinbase host hundreds of tokens within “years” and even potentially “millions” in the future, according to Armstrong.

The company has done a lot of the groundwork to make that happen.

Coinbase bought a securities dealer earlier this year and it has taken regulatory strides to list tokenized securities in the U.S, albeit with some confusion. In addition, its VC arm has backed a startup that helps create ‘digital security tokens’ and the exchange introduced a new listing process which could potentially include a listing fee in exchange for necessary legal work.

These 30 new (potential) assets might not be the digital security tokens that Coinbase is moving to add, but the fact that the exchange is exploring so many new assets in one go shows how much wider the company’s vision is now.

The crypto community has already reacted strongly to this deluge of new assets. As you might expect, it is a mix of naive optimism from those invested in ‘under-performing’ projects (shitcoins) who think a Coinbase listing could turn everything around, and criticism from crypto watchers who voiced concern that Coinbase is throwing its prestige and support behind less-than-deserving cryptocurrencies.

Note: The author owns a small amount of cryptocurrency. Enough to gain an understanding, not enough to change a life.


Source: The Tech Crunch

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