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Airbnb agrees to acquire last-minute hotel-booking app HotelTonight

Posted by on Mar 7, 2019 in Airbnb, Australia, battery ventures, Europe, First Round Capital, forerunner ventures, Fundings & Exits, Gaest, greg greeley, HotelTonight, Lyft, M&A, Pinterest, Sam Shank, San Francisco, Startups, TC, Uber, unicorn, vacation rental, Venture Capital | 0 comments

As Airbnb gears up for its big leap into the public markets, it’s expanding its accommodations platform to include more than just treehouses and quirky homes.

Today, the company has confirmed its intent to acquire HotelTonight, the developer of a hotel-booking application that lets travelers arrange last-minute accommodations. The deal was previously reported by The Wall Street Journal, which wrote in January that negotiations for the transaction had “gone cold.”

Airbnb is expected to complete an initial public offering as soon as this year, though co-founder and chief executive officer Brian Chesky has refrained from revealing a specific timeline. Like Uber, which plans to become the ultimate transportation company, Airbnb’s long-term ambition is to build an end-to-end travel platform complete with home sharing, hotel booking, business travel arrangements, experiences and more.

Airbnb declined to disclose terms of its HotelTonight acquisition. Once the deal is complete, the HotelTonight app and website will continue to operate independently, with co-founder and CEO Sam Shank reporting to Airbnb’s president of homes, Greg Greeley.

“We started HotelTonight because we knew people wanted a better way to book an amazing hotel room on-demand, and we are excited to join forces with Airbnb to bring this service to guests around the world,” Shank said in a statement. “Together, HotelTonight and Airbnb can give guests more choices and the world’s best boutique and independent hotels a genuine partner to connect them with those guests.”

Founded in 2010, San Francisco-based HotelTonight garnered a valuation of $463 million with a $37 million Series E funding in 2017, according to PitchBook. In total, the startup has raised $131 million in venture capital funding from Accel and Battery Ventures, which have participated in nearly every funding round for HotelTonight. Other early investors include Forerunner Ventures and First Round Capital.

Airbnb, for its part, was valued at $31 billion in 2017, with a $1 billion round. In January, Airbnb said it was profitable for the second consecutive year on an EBITDA (earnings before interest, taxes, depreciation and amortization) basis.

HotelTonight offers discounts at hotels in the Americas, Europe and Australia. The company partners with hotels to offer un-sold rooms, catering to business travelers or those looking to make last-minute arrangements. The deal will make it easier for Airbnb users to book hotels without planning weeks or months in advance and will help Airbnb expand its community beyond short-term rental hosts and guests.

Airbnb introduced boutique hotels to its platform in early 2018 and has boasted its quick growth. In 2018, the business said it more than doubled the number of boutique hotels, bed and breakfasts, hostels and resorts available. Airbnb’s business travel unit, Airbnb for Work, also had quick success. Launched in 2014, it now accounts for 15 percent of bookings. In total, Airbnb offers some 5 million places to stay in 191 countries.

Airbnb is kicking off 2019 with an acquisitive streak. In January, the company acquired Danish startup Gaest, a provider of a marketplace-style platform for people to post and book venues for meetings and other work-related events. The company again declined to pinpoint the price, though given Gaest had raised just $3.5 million in equity funding, the deal pales in comparison to Airbnb’s HotelTonight acquisition.

2019 is stacking up to be a particularly busy year for unicorn IPOs, some of which were likely delayed by a weeks-long government shutdown at the start of the year. Lyft, which recently unveiled its S-1, is poised to be the first billion-dollar company to exit to the stock markets, followed by Uber, Slack and Pinterest. Will Airbnb nudge its way into that lineup? We’ll see.


Source: The Tech Crunch

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Athenascope nabs $2.5M seed led by First Round to bring gamers AI-edited highlight reels

Posted by on Feb 8, 2019 in Athenascope, First Round Capital, Gaming, Josh Kopelman, TC | 0 comments

As massive cross-platform gaming titles become even larger time-sucks for a lot of people, it’s probably worth reflecting on how to savor your in-game accomplishments.

Streaming of esports celebrities on sites like Twitch has taken off like no one imagined, but for the most part the toil-heavy editing process has left this attention largely focused on those with the ambitions of making gaming their full-time gig.

Athenascope is a small startup aiming to tap computer vision intelligence to record, review and recap what more novice gamers were able to pull off in their latest battle royale with a short, shareable highlight reel. The team is led by Chris Kirmse, who previously founded Xfire, a game messaging client that Viacom bought in 2006 for north of $100 million.

The company announced this week that they’ve closed a $2.5 million seed round led by First Round Capital to grow its tools and its team. They’re also rolling out their AI highlight reel tool for gamers. The tool is pretty customized for individual titles; they’re launching with support for Fortnite, Rocket League and PUBG, but Kirmse hopes to expand that list significantly in the future.

Josh Kopelman, a partner at First Round Capital who is joining Athenascope’s board, highlighted that a lot of existing tools for gaming entertainment are “really skewed towards the high-end.”

“They’re not democratized, they’re for professional gamers,” Kopelman told TechCrunch. “What I think Chris is trying to do with Athenascope is enable anyone to create these high-quality game highlights — what the pros have to do manually.”

The company is tackling a problem familiar to video-editing software companies: how to prevent footage from dying on the device. The answer here is the same as many others have posited, tapping computer vision deep learning to do the heavy lifting in determining which footage is interesting and worthy of a highlight reel. Athenascope has some key advantages over the companies like GoPro that are trying to do the same with real-world video, namely the games they support operate in fundamentally more predictable ways and 2D interface cues offer some pretty healthy indicators of when exciting stuff is going down.

The game isn’t a plug-in that needs pipeline access to your Fortnite account or anything, the product simply analyzes exactly what you’re seeing when you play. The startup is also working on cool tools that allow you to see multiple perspectives of individual moments in gameplay by essentially syncing footage from other people involved in a match that are also Athenascope’s service and giving a sort of multi-view replay.

The company has broader ambitions of how it can evolve these gaming insights with computer vision, including ways to help gamers learn about their strengths and weaknesses in a way that lets Athenascope serve as a sort of computer vision coach. For now though, the big focus is on getting gamers these entertaining snapshots of their gaming experiences in an intelligent way.


Source: The Tech Crunch

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Startups Weekly: Squad’s screen-shares and Slack’s swastika

Posted by on Jan 19, 2019 in alex wilhelm, altos ventures, AnchorFree, Andreessen Horowitz, Autotech Ventures, Aviva Ventures, berlin, bird, bluerun ventures, Business, ceo, Ciitizen, crowdstrike, CrunchBase, economy, editor-in-chief, entrepreneurship, Finance, First Round Capital, Flash, France, Greenspring Associates, Ingrid Lunden, Italy, josh constine, Lance Armstrong, Maverick Ventures, Next Ventures, norwest venture partners, Portugal, Private Equity, redpoint ventures, resolute ventures, Rubrik, series C, slack, slow ventures, Spain, Startup company, Startups, switzerland, Tandem Capital, TC, TechStars, tools, unicorn, valar ventures, Venture Capital, zack Whittaker | 0 comments

We’re three weeks into January. We’ve recovered from our CES hangover and, hopefully, from the CES flu. We’ve started writing the correct year, 2019, not 2018.

Venture capitalists have gone full steam ahead with fundraising efforts, several startups have closed multi-hundred million dollar rounds, a virtual influencer raised equity funding and yet, all anyone wants to talk about is Slack’s new logo… As part of its public listing prep, Slack announced some changes to its branding this week, including a vaguely different looking logo. Considering the flack the $7 billion startup received instantaneously and accusations that the negative space in the logo resembled a swastika — Slack would’ve been better off leaving its original logo alone; alas…

On to more important matters.

Rubrik more than doubled its valuation

The data management startup raised a $261 million Series E funding at a $3.3 billion valuation, an increase from the $1.3 billion valuation it garnered with a previous round. In true unicorn form, Rubrik’s CEO told TechCrunch’s Ingrid Lunden it’s intentionally unprofitable: “Our goal is to build a long-term, iconic company, and so we want to become profitable but not at the cost of growth,” he said. “We are leading this market transformation while it continues to grow.”

Deal of the week: Knock gets $400M to take on Opendoor

Will 2019 be a banner year for real estate tech investment? As $4.65 billion was funneled into the space in 2018 across more than 350 deals and with high-flying startups attracting investors (Compass, Opendoor, Knock), the excitement is poised to continue. This week, Knock brought in $400 million at an undisclosed valuation to accelerate its national expansion. “We are trying to make it as easy to trade in your house as it is to trade in your car,” Knock CEO Sean Black told me.

Cybersecurity stays hot

While we’re on the subject of VCs’ favorite industries, TechCrunch cybersecurity reporter Zack Whittaker highlights some new data on venture investment in the industry. Strategic Cyber Ventures says more than $5.3 billion was funneled into companies focused on protecting networks, systems and data across the world, despite fewer deals done during the year. We can thank Tanium, CrowdStrike and Anchorfree’s massive deals for a good chunk of that activity.

Send me tips, suggestions and more to kate.clark@techcrunch.com or @KateClarkTweets

Fundraising efforts continue

I would be remiss not to highlight a slew of venture firms that made public their intent to raise new funds this week. Peter Thiel’s Valar Ventures filed to raise $350 million across two new funds and Redpoint Ventures set a $400 million target for two new China-focused funds. Meanwhile, Resolute Ventures closed on $75 million for its fourth early-stage fund, BlueRun Ventures nabbed $130 million for its sixth effort, Maverick Ventures announced a $382 million evergreen fund, First Round Capital introduced a new pre-seed fund that will target recent graduates, Techstars decided to double down on its corporate connections with the launch of a new venture studio and, last but not least, Lance Armstrong wrote his very first check as a VC out of his new fund, Next Ventures.

More money goes toward scooters

In case you were concerned there wasn’t enough VC investment in electric scooter startups, worry no more! Flash, a Berlin-based micro-mobility company, emerged from stealth this week with a whopping €55 million in Series A funding. Flash is already operating in Switzerland and Portugal, with plans to launch into France, Italy and Spain in 2019. Bird and Lime are in the process of raising $700 million between them, too, indicating the scooter funding extravaganza of 2018 will extend into 2019 — oh boy!

Startups secure cash

  • Niantic finally closed its Series C with $245 million in capital commitments and a lofty $4 billion valuation.
  • Outdoorsy, which connects customers with underused RVs, raised $50 million in Series C funding led by Greenspring Associates, with participation from Aviva Ventures, Altos Ventures, AutoTech Ventures and Tandem Capital.
  • Ciitizen, a developer of tools to help cancer patients organize and share their medical records, has raised $17 million in new funding in a round led by Andreessen Horowitz.
  • Footwear startup Birdies — no, I don’t mean Allbirds or Rothy’s — brought in an $8 million Series A led by Norwest Venture Partners, with participation from Slow Ventures and earlier investor Forerunner Ventures.
  • And Brud, the company behind the virtual celebrity Lil Miquela, is now worth $125 million with new funding.

Feature of the week

TechCrunch’s Josh Constine introduced readers to Squad this week, a screensharing app for social phone addicts.

Listen to me talk

If you enjoy this newsletter, be sure to check out TechCrunch’s venture-focused podcast, Equity. In this week’s episode, available here, Crunchbase editor-in-chief Alex Wilhelm and I marveled at the dollars going into scooter startups, discussed Slack’s upcoming direct listing and debated how the government shutdown might impact the IPO market.

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Source: The Tech Crunch

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Startups Weekly: Will Trump ruin the unicorn IPOs of our dreams?

Posted by on Jan 12, 2019 in aurora, BlackRock, Facebook, First Round Capital, funding, goodwater capital, Insight Venture Partners, Lyft, Magic Leap, money, Mr Jeff, Pinterest, Postmates, romain dillet, sequoia capital, Softbank, Startups, U.S. Securities and Exchange Commission, Uber, Valentin Stalf, Venture Capital | 0 comments

The government shutdown entered its 21st day on Friday, upping concerns of potentially long-lasting impacts on the U.S. stock market. Private market investors around the country applauded when Uber finally filed documents with the SEC to go public. Others were giddy to hear Lyft, Pinterest, Postmates and Slack (via a direct listing, according to the latest reports) were likely to IPO in 2019, too.

Unfortunately, floats that seemed imminent may not actually surface until the second half of 2019 — that is unless President Donald Trump and other political leaders are able to reach an agreement on the federal budget ASAP.  This week, we explored the government’s shutdown’s connection to tech IPOs, recounted the demise of a well-funded AR project and introduced readers to an AI-enabled self-checkout shopping cart.

1. Postmates gets pre-IPO cash

The company, an early entrant to the billion-dollar food delivery wars, raised what will likely be its last round of private capital. The $100 million cash infusion was led by BlackRock and valued Postmates at $1.85 billion, up from the $1.2 billion valuation it garnered with its unicorn round in 2018.

2. Uber’s IPO may not be as eye-popping as we expected

To be fair, I don’t think many of us really believed the ride-hailing giant could debut with a $120 billion initial market cap. And can speculate on Uber’s valuation for days (the latest reports estimate a $90 billion IPO), but ultimately Wall Street will determine just how high Uber will fly. For now, all we can do is sit and wait for the company to relinquish its S-1 to the masses.

3. Deal of the week

N26, a German fintech startup, raised $300 million in a round led by Insight Venture Partners at a $2.7 billion valuation. TechCrunch’s Romain Dillet spoke with co-founder and CEO Valentin Stalf about the company’s global investors, financials and what the future holds for N26.

4. On the market

Bird is in the process of raising an additional $300 million on a flat pre-money valuation of $2 billion. The e-scooter startup has already raised a ton of capital in a very short time and a fresh financing would come at a time when many investors are losing faith in scooter startups’ claims to be the solution to the problem of last-mile transportation, as companies in the space display poor unit economics, faulty batteries and a general air of undependability. Plus, Aurora, the developer of a full-stack self-driving software system for automobile manufacturers, is raising at least $500 million in equity funding at more than a $2 billion valuation in a round expected to be led by new investor Sequoia Capital.


Here’s your weekly reminder to send me tips, suggestions and more to kate.clark@techcrunch.com or @KateClarkTweets


5. A unicorn’s deal downsizes

WeWork, a co-working giant backed with billions, had planned on securing a $16 billion investment from existing backer SoftBank . Well, that’s not exactly what happened. And, oh yeah, they rebranded.

6. A startup collapses

After 20 long years, augmented reality glasses pioneer ODG has been left with just a skeleton crew after acquisition deals from Facebook and Magic Leap fell through. Here’s a story of a startup with $58 million in venture capital backing that failed to deliver on its promises.

7. Data point

Seed activity for U.S. startups has declined for the fourth straight year, as median deal sizes increased at every stage of venture capital.

8. Meanwhile, in startup land…

This week edtech startup Emeritus, a U.S.-Indian company that partners with universities to offer digital courses, landed a $40 million Series C round led by Sequoia India. Badi, which uses an algorithm to help millennials find roommates, brought in a $30 million Series B led by Goodwater Capital. And Mr Jeff, an on-demand laundry service startup, bagged a $12 million Series A.

9. Finally, Meet Caper, the AI self-checkout shopping cart

The startup, which makes a shopping cart with a built-in barcode scanner and credit card swiper, has revealed a total of $3 million, including a $2.15 million seed round led by First Round Capital .

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Source: The Tech Crunch

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Uber files confidentially for IPO

Posted by on Dec 8, 2018 in First Round Capital, Fundings & Exits, Goldman Sachs, TC, TPG Growth, U.S. Securities and Exchange Commission | 0 comments

Two days after Lyft submitted paperwork to the U.S. Securities and Exchange Commission for an early 2019 initial public offering, Uber has done the same, per The Wall Street Journal.

The company filed confidentially for an IPO on Friday, marking the beginning of a race for the two ride-hailing giants to the stock markets.

Uber’s most recent private market valuation was a whopping $72 billion, though the nearly 10-year-old business reportedly expects Wall Street to value it at as much as $120 billion in what will easily be one of the most highly-anticipated IPOs of the decade.

Uber didn’t immediately respond to a request for comment.

Founded in 2009 by Travis Kalanick, Uber has raised a total of nearly $20 billion in a combination of debt and equity funding, according to PitchBook. SoftBank alone has invested billions in the company to become its largest shareholder. Uber’s other key backers are Toyota, which invested $500 million just a few months ago, as well as late-stage investors T. Rowe Price, Fidelity and TPG Growth.

First Round Capital, Lowercase Capital and others stand to earn big from Uber’s exit — all were participants in some of the company’s earliest venture capital rounds.

The filing comes slightly earlier than expected. Uber’s current chief executive officer Dara Khosrowshahi previously said he expected the company to complete an IPO in mid-2019 but today’s news puts Uber on pace to debut in the first quarter of next year.

“[Uber] has all the disadvantage of being a public company, with the spotlight on us, with none of the advantages,” Khosrowshahi said on stage at the New York Times’ Dealbook conference in 2017.

Uber shared its third quarter financial results recently, with net losses up 32 percent quarter-over-quarter to $939 million on a pro forma basis. On an earnings before interest, taxes, depreciation and amortization (EBITDA) basis, Uber’s losses were $527 million, up about 21 percent QoQ. The company said revenue was up five percent QoQ at $2.95 billion and up 38 percent increase year-over-year.

It appears Uber’s IPO timeline was pushed forward following reports of Lyft’s confidential IPO paperwork. Lyft, Uber’s largest competitor in the U.S., will likely take the plunge in the first quarter of 2019, too. The company was most recently valued at about $15 billion. Its IPO will be underwritten by JPMorgan Chase and Credit Suisse Jeffries.

2019 will be a fascinating year for unicorn exits with a separate report out today that Slack is also prepping its IPO and has hired Goldman Sachs to underwrite its offering. Lyft, Uber and Slack alone are worth an aggregate valuation of $94 billion, which means 2019 will undoubtedly bring some much-needed liquidity to a slew of tech investors.


Source: The Tech Crunch

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