Healthcare wearables level up with new moves from Apple and Alphabet

Announcements that Apple has partnered with Aetna health insurance on a new app leveraging data from its Apple Watch and reports that Verily — one of the health-focused subsidiaries of Google‘s parent company — Alphabet, is developing a shoe that can detect weight and movement, indicate increasing momentum around using data from wearables for clinical health applications and […]

Announcements that Apple has partnered with Aetna health insurance on a new app leveraging data from its Apple Watch and reports that Verily — one of the health-focused subsidiaries of Google‘s parent company — Alphabet, is developing a shoe that can detect weight and movement, indicate increasing momentum around using data from wearables for clinical health applications and treatments.

For venture capital investors, the movea from Apple and Alphabet to show new applications for wearable devices is a step in the right direction — and something that’s been long overdue.

“As a healthcare provider, we talk a lot about the important of preventative medicine, but the US healthcare system doesn’t have the right incentives in place to pay for it,” writes Cameron Sepah, an entrepreneur in residence at Trinity Ventures. “Since large employers largely pay for health care (outside of Medicaid and Medicare), they usually aren’t incentivized to pay for prevention, since employees don’t stay long enough for them to incur the long-term costs of health behaviors. So most startups in this space end up becoming an expendable wellness perk for companies. However, if an insurer like Aetna keeps its members long enough, there’s better alignment for disseminating this app.”

Sepah sees broader implications for the tie ups between health insurers and the tech companies making all sorts of devices to detect and diagnose conditions.

“Most patients relationship with their insurer is just getting paper bills/notifications in the mail, with terrible customer satisfaction (NPS) across the board,” Sepah wrote in an email. “But when there’s a way to build a closer relationship through a device that sits on your wrist, it opens possibilities to partner with other health tech startups that can notify patients when they are having mental health issues before they even recognize it (e.g. Mindstrong); or when they should get treatment for hypertension or sleep apnea (e.g. Cardiogram); or leverage their data into a digital chronic disease treatment program (e.g. Omada Health).”

Aetna isn’t the first insurer to tie Apple Watch data to their policies. In September 2018, John Hancock launched the Vitality program, which also gave users discounts on the latest Apple Watch if they linked it with John Hancock’s app. The company also gave out rewards if users changed their behavior around diet and exercise.

In a study conducted by Rand Europe of 400,000 people in the U.S., the U.K., and South Africa, research showed that users who wore an Apple Watch and participated in the Vitality benefits program averaged a 34 percent increase in physical activity compared to patients without the Apple Watch. It equated to roughly 5 extra days of working out per month.

“[It will] be interesting to see how CVS/Apple deal unfolds. Personalized health guidance based on a combination of individual medical records and real time wearable data is a huge and worthy goal,” wrote Greg Yap, a partner at the venture capital firm, Menlo Ventures . But, Yap wrote,I’m skeptical their first generation app will have enough data or training to deliver value to a broad population, but we’re likely to see some anecdotal benefits, and I find that worthwhile.”

Meanwhile the types of devices that record consumer health information are proliferating — thanks in no small part to Verily.

With the company reportedly working to co-develop shoes with sensors that monitor users’ movement and weight, according to CNBC, Verily is expanding its portfolio of connected devices for health monitoring and management. The company already has a watch that monitors certain patient data — including an FDA approved electrocardiogram — and is developing technologies to track diabetes-related eye disease in patients alongside smart lenses for cataract recovery.

It’s part of a broader push from technology companies to tie themselves closer to consumer health as they look to seize a part of the nearly $3 trillion healthcare industry.

If more data can be collected from wearable devices (or consumer behavior) and then monitored in a consistent fashion, tech companies ideally could suggest interventions faster and provide lower cost treatments to help avoid the need for urgent or emergency care.

These “top of the funnel” communications and monitoring services from tech companies could conceivably divert users and future healthcare patients into an alternative system that is potentially lower-cost with more of a focus on outcomes than on the volume of care and number of treatments prescribed.

Not all physicians are convinced that the use of persistent monitoring will result in better care. Dr. John Ioannidis, a celebrated professor from Stanford University, is skeptical about the utility of monitoring without a better understanding of what the data actually reveals.

“Information is good for you provided you know what it means. For much of that information we have no clue what it means. We have absolutely no idea what to do with it other than creating more anxiety,” Dr. Ioannidis said

The goal is to provide personalized guidance where machine learning can be used to identify problems and come up in concert with established therapeutic practices, according to investors who back life sciences starups.

“I think startups like Omada, Livongo, Lark, Vida, Virta, and others, can work and are already working on this overall vision of combining real time and personal historical data to deliver personalized guidance. But to be successful, startups need to be more narrowly focused and deliver improved outcomes and financial benefits right away,” according to Yap.

 

How business-to-business startups reduce inequality

Sibjeet Mahapatra Contributor Share on Twitter Sib Mahapatra first explored VR at Redfin. He is co-founder of Recess Labs and a Venture Fellow at Notation Capital, where he researches frontier tech including AR and VR. More posts by this contributor VR, presence and the case of the missing killer app The bull case for Snapchat […]

When considering the structural impact of technology companies on our economy and society, we tend to focus on questions of scale and monopoly.

It’s true that the FAANG companies and more recent winners (Airbnb, Uber) have surfed a combination of network effects, preferential access to capital and classic efficiencies of scale to generate tremendous value for their shareholders—to the detriment of new entrants who attempt to unseat them.

At their high water mark in mid-2018, FAANG alone made up 11% of the total market cap of the S&P 500 and 38% of the index’s year-to-date gain, representing a doubling in their influence in only five years. The question of regulating technology companies—to the point of instituting anti-trust actions—has even become a rare point of relative concord between Democrats and Republicans in Congress.

But is the narrative of tech companies in the 2010s only a story of economic consolidation and growing inequality? Many of the most successful B2B startups of the last decade are aligned by a theme that paints a different picture. By transforming the nature of the costs required to start a business, these startups are reducing the influence of capital and leveling the playing field for new entrants to share in the surplus generated by the secular shift to a tech-mediated economy.

Source: Getty Images/MIKIEKWOODS

A Path To Equal Opportunity: Turning Fixed Costs Into Variable Costs

What do AWSWeWorkStordGusto and RocketLawyer have in common? They provide cloud computing services, office space, warehouse storage, payroll management and access to legal templates, respectively—at first glance, not a particularly congruent set of services.

But they are alike in the economic purpose they serve for their customers. Each of these services takes a fixed cost—a bank of servers, a lease, a legal retainer—and transforms it into a variable cost. As a refresher, a fixed cost stays constant regardless of output, and variable costs scale with the output of a business.

When my father started his software consulting business in the early 1990s, I remember the giant boxes of AIX servers that arrived at our apartment, and tagging along to office tours in central New Jersey before he decided to run the company out of our spare bedroom. Back then, starting almost any kind of business was hard because of high fixed costs. Without AWS or WeWork, you shelled out up front for hardware and a lease.

Access to capital, whether in the form of a bank loan, savings, or friends and family was a prerequisite for entrepreneurship.

Today, startups make it possible to start and scale almost any kind of business while incurring few fixed costs. Want to found an ecommerce store? Start with a free Shopify account and dropship your inventory. Want to become a freelance designer? Put a shingle up on Fiverr and meet clients at a Breather you rent by the hour.

Whether software or hardware or labor, building a business is way easier when overhead is transformed into a string of flexible microservices that you only pay for as you grow.

Image courtesy of Getty Images

Lower Fixed Costs Means Capital Matters Less

Taken together, startups that turn fixed costs into variable costs make it less capital intensive to start a business. This decreases the influence of gatekeepers and aggregators of capital—an impact evident in the way entrepreneurs think about starting businesses today.

It’s no coincidence that the rise of B2B startups fitting this theme has coincided with the bootstrap movement, in which tech entrepreneurs with major ambitions demur from raising venture funding because—well, they don’t need the money anymore.

It has also coincided with a renaissance in freelance entrepreneurship: 56.7 million Americans freelanced in 2018. Beyond the economic benefits of working for yourself—the fastest growing segment of freelancers earns over $75,000 a year—freelancers can access the lifestyle and health benefits of owning their destiny, which aren’t directly captured but play a role in the economic picture. 51% of freelancers said no amount of money would lure them into a traditional job, and 64% reported feeling healthier and happier.

When capital plays a reduced role in new business formation, access to capital plays a smaller role in determining who will succeed. More companies are founded, and the economy becomes more likely to birth new Davids that will unseat the Goliaths. Economics 101: lower barriers to entry create markets that converge on perfect competition instead of oligarchic concentration.

Sourlce: Getty Images/ERHUI1979

Variable Costs Don’t Scale, But That’s OK

Variable costs have their downsides. A startup with a relatively higher proportion of fixed costs—the profile of the classic high-tech software business—can achieve higher profit margins as it scales. Compare Microsoft or Google, which pay high fixed costs in the form of salaries and servers but few costs in delivering their services and achieve operating margins of 25-30%, to Costco, which takes in more than $100B of annual revenue but earns an operating margin in the single digits.

That’s OK. Neither type of cost is “better” or “worse,” but having the option to decide how to structure costs through a company’s lifecycle can meaningfully impact an entrepreneur’s ability to execute a business idea.
Founders investigating startup ideas—and politicians debating the impact of technology—would do well to pay attention to how B2B companies have democratized access to entrepreneurship.

Equality of outcome arrives from equality of opportunity—and a future where millions of people can start businesses, differentiate, and succeed on the basis of their ability and value proposition, rather than their access to capital, sounds like a promising representation of the egalitarian ethos Silicon Valley wants to bring to pass.

How business-to-business startups reduce inequality

Sibjeet Mahapatra Contributor Share on Twitter Sib Mahapatra first explored VR at Redfin. He is co-founder of Recess Labs and a Venture Fellow at Notation Capital, where he researches frontier tech including AR and VR. More posts by this contributor VR, presence and the case of the missing killer app The bull case for Snapchat […]

When considering the structural impact of technology companies on our economy and society, we tend to focus on questions of scale and monopoly.

It’s true that the FAANG companies and more recent winners (Airbnb, Uber) have surfed a combination of network effects, preferential access to capital and classic efficiencies of scale to generate tremendous value for their shareholders—to the detriment of new entrants who attempt to unseat them.

At their high water mark in mid-2018, FAANG alone made up 11% of the total market cap of the S&P 500 and 38% of the index’s year-to-date gain, representing a doubling in their influence in only five years. The question of regulating technology companies—to the point of instituting anti-trust actions—has even become a rare point of relative concord between Democrats and Republicans in Congress.

But is the narrative of tech companies in the 2010s only a story of economic consolidation and growing inequality? Many of the most successful B2B startups of the last decade are aligned by a theme that paints a different picture. By transforming the nature of the costs required to start a business, these startups are reducing the influence of capital and leveling the playing field for new entrants to share in the surplus generated by the secular shift to a tech-mediated economy.

Source: Getty Images/MIKIEKWOODS

A Path To Equal Opportunity: Turning Fixed Costs Into Variable Costs

What do AWSWeWorkStordGusto and RocketLawyer have in common? They provide cloud computing services, office space, warehouse storage, payroll management and access to legal templates, respectively—at first glance, not a particularly congruent set of services.

But they are alike in the economic purpose they serve for their customers. Each of these services takes a fixed cost—a bank of servers, a lease, a legal retainer—and transforms it into a variable cost. As a refresher, a fixed cost stays constant regardless of output, and variable costs scale with the output of a business.

When my father started his software consulting business in the early 1990s, I remember the giant boxes of AIX servers that arrived at our apartment, and tagging along to office tours in central New Jersey before he decided to run the company out of our spare bedroom. Back then, starting almost any kind of business was hard because of high fixed costs. Without AWS or WeWork, you shelled out up front for hardware and a lease.

Access to capital, whether in the form of a bank loan, savings, or friends and family was a prerequisite for entrepreneurship.

Today, startups make it possible to start and scale almost any kind of business while incurring few fixed costs. Want to found an ecommerce store? Start with a free Shopify account and dropship your inventory. Want to become a freelance designer? Put a shingle up on Fiverr and meet clients at a Breather you rent by the hour.

Whether software or hardware or labor, building a business is way easier when overhead is transformed into a string of flexible microservices that you only pay for as you grow.

Image courtesy of Getty Images

Lower Fixed Costs Means Capital Matters Less

Taken together, startups that turn fixed costs into variable costs make it less capital intensive to start a business. This decreases the influence of gatekeepers and aggregators of capital—an impact evident in the way entrepreneurs think about starting businesses today.

It’s no coincidence that the rise of B2B startups fitting this theme has coincided with the bootstrap movement, in which tech entrepreneurs with major ambitions demur from raising venture funding because—well, they don’t need the money anymore.

It has also coincided with a renaissance in freelance entrepreneurship: 56.7 million Americans freelanced in 2018. Beyond the economic benefits of working for yourself—the fastest growing segment of freelancers earns over $75,000 a year—freelancers can access the lifestyle and health benefits of owning their destiny, which aren’t directly captured but play a role in the economic picture. 51% of freelancers said no amount of money would lure them into a traditional job, and 64% reported feeling healthier and happier.

When capital plays a reduced role in new business formation, access to capital plays a smaller role in determining who will succeed. More companies are founded, and the economy becomes more likely to birth new Davids that will unseat the Goliaths. Economics 101: lower barriers to entry create markets that converge on perfect competition instead of oligarchic concentration.

Sourlce: Getty Images/ERHUI1979

Variable Costs Don’t Scale, But That’s OK

Variable costs have their downsides. A startup with a relatively higher proportion of fixed costs—the profile of the classic high-tech software business—can achieve higher profit margins as it scales. Compare Microsoft or Google, which pay high fixed costs in the form of salaries and servers but few costs in delivering their services and achieve operating margins of 25-30%, to Costco, which takes in more than $100B of annual revenue but earns an operating margin in the single digits.

That’s OK. Neither type of cost is “better” or “worse,” but having the option to decide how to structure costs through a company’s lifecycle can meaningfully impact an entrepreneur’s ability to execute a business idea.
Founders investigating startup ideas—and politicians debating the impact of technology—would do well to pay attention to how B2B companies have democratized access to entrepreneurship.

Equality of outcome arrives from equality of opportunity—and a future where millions of people can start businesses, differentiate, and succeed on the basis of their ability and value proposition, rather than their access to capital, sounds like a promising representation of the egalitarian ethos Silicon Valley wants to bring to pass.

Starting with data centers, Carbon Relay is slashing energy costs and emissions using AI

Taiwanese technology giant Foxconn International is backing Carbon Relay, a Boston-based startup emerging from stealth today, that’s harnessing the algorithms used by companies like Facebook and Google for artificial intelligence to curb greenhouse gas emissions in the technology industry’s own backyard — the datacenter. Already, the computing demands of the technology industry are responsible for […]

Taiwanese technology giant Foxconn International is backing Carbon Relay, a Boston-based startup emerging from stealth today, that’s harnessing the algorithms used by companies like Facebook and Google for artificial intelligence to curb greenhouse gas emissions in the technology industry’s own backyard — the datacenter.

Already, the computing demands of the technology industry are responsible for 3% of total energy consumption — and the addition of new technologies like Bitcoin to the mix could add another half a percent to that figure within the next few years, according to Carbon Relay’s chief executive, Matt Provo.

That’s $25 billion in spending on energy per year across the industry, Provo says.

A former Apple employee, Provo went to Harvard Business School because he knew he wanted to be an entrepreneur and start his own business — and he wanted that business to solve a meaningful problem, he said.

Variability and dynamic nature of the data center relating to thermodynamics and the makeup of  a facility or building is interesting for AI because humans can’t keep up..

“We knew what we wanted to focus on,” said Provo of himself and his two co-founders. “All three of us have an environmental sciences background as well… We were fired up about building something that was true AI that has positive value… the risk associated [with climate change] is going to hit in our lifetime we were very inspired to build a company whose technology would have an impact on that.”

Carbon Relay’s mission and founding team including Thibaut Perol and John Platt (two Harvard graduates with doctorates in applied mathematics) was able to attract some big backers.

The company has raised $6 million from industry giants like Foxconn and Boston-based angel investors including Dr. James Cash — a director on the boards of Walmart, Microsoft, GE, and State Street; Black Duck Software founder, Douglas Levin; Karim Lakhani, a director on the Mozilla Corporation board; and Paul Deninger, a director on the board of the building operations management company, Resideo (formerly Honeywell).

Provo and his team didn’t just raise the money to tackle data centers — and Foxconn’s involvement hints at the company’s broader goals. “My vision is that commercial HVAC systems or any machinery that operates in a business would not ship without our intelligence inside of it,” says Provo.

What’s more compelling is that the company’s technology works without exposing the underlying business to significant security risks, Provo says.

“In the end all we’re doing are sending these floats… these values. These values are mathematical directions for the actions that need to be taken,” he says. 

Carbon Relay is already profitable, generating $4 million in revenue last year and on track for another year of steady growth, according to Provo.

Carbon Relay offers two products: Optimize and Predict, that gather information from existing HVAC devices and then control those systems continuously and automatically with continuous decision making.

“Each data center is unique and enormously complex, requiring its own approach to managing energy use over time,” said Cash, who’s serving as the company’s chairman. “The Carbon Relay team is comprised of people who are passionate about creating a solution that will adapt to the needs of every large data center, creating a tangible and rapid impact on the way these organizations do business.”

Entrepreneur First eyes further Asia growth to build its global network of founders

British startup venture builder Entrepreneur First is eying additional expansion in Asia, where its operation is now as large as it is in Europe, as it expands its reach in 2019. But, despite serving a varied mixture of markets, the company said its founders are a fairly unified breed. The Entrepreneur First program is billed […]

British startup venture builder Entrepreneur First is eying additional expansion in Asia, where its operation is now as large as it is in Europe, as it expands its reach in 2019. But, despite serving a varied mixture of markets, the company said its founders are a fairly unified breed.

The Entrepreneur First program is billed as a “talent investor.” It matches prospective founders and, through an accelerator program, it encourages them to start and build companies which it backs with financing. The organization started out in London in 2011, and today it is also present in Paris and Berlin in Europe and, in Asia, Singapore, Hong Kong and (soon) Bangalore. To date, it says it has graduated over 1,200 founders who have created more than 200 companies, estimated at a cumulative $1.5 billion on paper.

Those six cities cover a spread of unique cultures — both in general life and startup ecosystems — but, despite that, co-founder Matthew Clifford believes there’s actually many commonalities between among its global founder base.

“It’s really striking to me how little adjustment of the model has been necessary to make it work in each location,” Clifford — who started EF with Alice Bentinck — told TechCrunch in an interview. “The outliers in each country have more in common with each other and their fellow compatriots… we’re uncovering this global community of outliers.”

Despite the common traits, EF’s Asia expansion has added a new dimension to the program after it announced a tie-in with HAX, one of the world’s best-known hardware-focused accelerator programs, that will see the duo co-invest in hardware startups via a new joint program.

“We saw early that hardware was a much more viable part of the market in Asia than it is traditionally seen in Europe [and] needed a partner to accelerate the talent,” Clifford said.

Already, the first four beneficiaries of that partnership have been announced — AIMS, BOPSIN, Neptune Robotics and SEPPURE — each of which graduated the first EF cohort in Hong Kong, its fourth in Asia so far. Going forward, Clifford expects that around three to five startups from each batch will move from EF into the joint initiative with HAX. The program covers Asia first but it is slated to expand to EF’s European sites “soon.”

Entrepreneur First held its first investor day in Hong Kong this month

Another impending expansion is EF’s first foray into India via Bangalore which starts this month, and there could be other new launches in 2019.

“We’ll continue to grow by adding sites but we are not in a rush,” Clifford said. “The most important thing is retraining quality of talent. It may be six months until we add another site in Asia but there’s no shortage of places we think it will work.

“We operate a single global fund,” he added. “We’re a talent investor and we believe there are strong network effects in that. The people who back us are really betting on the model… [that it’s] an asset class with great returns.

While it appears that its global expansion drive is a little more gradual than what was previously envisaged — backer and board member Reid Hoffman told TechCrunch in 2016 that he could imagine it in 50 cities — Clifford said EF isn’t raising more capital presently. That previous investment coupled with management fees is enough fuel in the tank, he said. The organization also operates a follow-on fund but it has one major exit to date, Pony Technology, the AI startup bought by Twitter for a reported $150 million.

Still, with hundreds of companies in the world with EF on the cap table, Clifford said he is bullish that his organization can target an international-minded breed of entrepreneur worldwide. The impact he sees is one that will work regardless of any local constraints placed on them.

“With our global network of capital, we always want capital, not talent, to be the limiting factor. Our goal is to make being ‘an EF company’ more relevant to your identity as a startup regardless of your location,” he told TechCrunch

Entrepreneur First eyes further Asia growth to build its global network of founders

British startup venture builder Entrepreneur First is eying additional expansion in Asia, where its operation is now as large as it is in Europe, as it expands its reach in 2019. But, despite serving a varied mixture of markets, the company said its founders are a fairly unified breed. The Entrepreneur First program is billed […]

British startup venture builder Entrepreneur First is eying additional expansion in Asia, where its operation is now as large as it is in Europe, as it expands its reach in 2019. But, despite serving a varied mixture of markets, the company said its founders are a fairly unified breed.

The Entrepreneur First program is billed as a “talent investor.” It matches prospective founders and, through an accelerator program, it encourages them to start and build companies which it backs with financing. The organization started out in London in 2011, and today it is also present in Paris and Berlin in Europe and, in Asia, Singapore, Hong Kong and (soon) Bangalore. To date, it says it has graduated over 1,200 founders who have created more than 200 companies, estimated at a cumulative $1.5 billion on paper.

Those six cities cover a spread of unique cultures — both in general life and startup ecosystems — but, despite that, co-founder Matthew Clifford believes there’s actually many commonalities between among its global founder base.

“It’s really striking to me how little adjustment of the model has been necessary to make it work in each location,” Clifford — who started EF with Alice Bentinck — told TechCrunch in an interview. “The outliers in each country have more in common with each other and their fellow compatriots… we’re uncovering this global community of outliers.”

Despite the common traits, EF’s Asia expansion has added a new dimension to the program after it announced a tie-in with HAX, one of the world’s best-known hardware-focused accelerator programs, that will see the duo co-invest in hardware startups via a new joint program.

“We saw early that hardware was a much more viable part of the market in Asia than it is traditionally seen in Europe [and] needed a partner to accelerate the talent,” Clifford said.

Already, the first four beneficiaries of that partnership have been announced — AIMS, BOPSIN, Neptune Robotics and SEPPURE — each of which graduated the first EF cohort in Hong Kong, its fourth in Asia so far. Going forward, Clifford expects that around three to five startups from each batch will move from EF into the joint initiative with HAX. The program covers Asia first but it is slated to expand to EF’s European sites “soon.”

Entrepreneur First held its first investor day in Hong Kong this month

Another impending expansion is EF’s first foray into India via Bangalore which starts this month, and there could be other new launches in 2019.

“We’ll continue to grow by adding sites but we are not in a rush,” Clifford said. “The most important thing is retraining quality of talent. It may be six months until we add another site in Asia but there’s no shortage of places we think it will work.

“We operate a single global fund,” he added. “We’re a talent investor and we believe there are strong network effects in that. The people who back us are really betting on the model… [that it’s] an asset class with great returns.

While it appears that its global expansion drive is a little more gradual than what was previously envisaged — backer and board member Reid Hoffman told TechCrunch in 2016 that he could imagine it in 50 cities — Clifford said EF isn’t raising more capital presently. That previous investment coupled with management fees is enough fuel in the tank, he said. The organization also operates a follow-on fund but it has one major exit to date, Pony Technology, the AI startup bought by Twitter for a reported $150 million.

Still, with hundreds of companies in the world with EF on the cap table, Clifford said he is bullish that his organization can target an international-minded breed of entrepreneur worldwide. The impact he sees is one that will work regardless of any local constraints placed on them.

“With our global network of capital, we always want capital, not talent, to be the limiting factor. Our goal is to make being ‘an EF company’ more relevant to your identity as a startup regardless of your location,” he told TechCrunch

Entrepreneur First eyes further Asia growth to build its global network of founders

British startup venture builder Entrepreneur First is eying additional expansion in Asia, where its operation is now as large as it is in Europe, as it expands its reach in 2019. But, despite serving a varied mixture of markets, the company said its founders are a fairly unified breed. The Entrepreneur First program is billed […]

British startup venture builder Entrepreneur First is eying additional expansion in Asia, where its operation is now as large as it is in Europe, as it expands its reach in 2019. But, despite serving a varied mixture of markets, the company said its founders are a fairly unified breed.

The Entrepreneur First program is billed as a “talent investor.” It matches prospective founders and, through an accelerator program, it encourages them to start and build companies which it backs with financing. The organization started out in London in 2011, and today it is also present in Paris and Berlin in Europe and, in Asia, Singapore, Hong Kong and (soon) Bangalore. To date, it says it has graduated over 1,200 founders who have created more than 200 companies, estimated at a cumulative $1.5 billion on paper.

Those six cities cover a spread of unique cultures — both in general life and startup ecosystems — but, despite that, co-founder Matthew Clifford believes there’s actually many commonalities between among its global founder base.

“It’s really striking to me how little adjustment of the model has been necessary to make it work in each location,” Clifford — who started EF with Alice Bentinck — told TechCrunch in an interview. “The outliers in each country have more in common with each other and their fellow compatriots… we’re uncovering this global community of outliers.”

Despite the common traits, EF’s Asia expansion has added a new dimension to the program after it announced a tie-in with HAX, one of the world’s best-known hardware-focused accelerator programs, that will see the duo co-invest in hardware startups via a new joint program.

“We saw early that hardware was a much more viable part of the market in Asia than it is traditionally seen in Europe [and] needed a partner to accelerate the talent,” Clifford said.

Already, the first four beneficiaries of that partnership have been announced — AIMS, BOPSIN, Neptune Robotics and SEPPURE — each of which graduated the first EF cohort in Hong Kong, its fourth in Asia so far. Going forward, Clifford expects that around three to five startups from each batch will move from EF into the joint initiative with HAX. The program covers Asia first but it is slated to expand to EF’s European sites “soon.”

Entrepreneur First held its first investor day in Hong Kong this month

Another impending expansion is EF’s first foray into India via Bangalore which starts this month, and there could be other new launches in 2019.

“We’ll continue to grow by adding sites but we are not in a rush,” Clifford said. “The most important thing is retraining quality of talent. It may be six months until we add another site in Asia but there’s no shortage of places we think it will work.

“We operate a single global fund,” he added. “We’re a talent investor and we believe there are strong network effects in that. The people who back us are really betting on the model… [that it’s] an asset class with great returns.

While it appears that its global expansion drive is a little more gradual than what was previously envisaged — backer and board member Reid Hoffman told TechCrunch in 2016 that he could imagine it in 50 cities — Clifford said EF isn’t raising more capital presently. That previous investment coupled with management fees is enough fuel in the tank, he said. The organization also operates a follow-on fund but it has one major exit to date, Pony Technology, the AI startup bought by Twitter for a reported $150 million.

Still, with hundreds of companies in the world with EF on the cap table, Clifford said he is bullish that his organization can target an international-minded breed of entrepreneur worldwide. The impact he sees is one that will work regardless of any local constraints placed on them.

“With our global network of capital, we always want capital, not talent, to be the limiting factor. Our goal is to make being ‘an EF company’ more relevant to your identity as a startup regardless of your location,” he told TechCrunch

Backing Culture Genesis, T.I. launches Tech Cypha, an investment syndicate for tech deals

With an inaugural investment into the Los Angeles-based entertainment startup Culture Genesis, Clifford Harris Jr., who’s better known as “T.I.”, has launched a new syndicated investment vehicle called Tech Cypha. Launched by the music and cultural impresario with more hustle than hustle and his business partner Jason Geter, the new collaborative investment strategy focused on tech startups will […]

With an inaugural investment into the Los Angeles-based entertainment startup Culture Genesis, Clifford Harris Jr., who’s better known as “T.I.”, has launched a new syndicated investment vehicle called Tech Cypha.

Launched by the music and cultural impresario with more hustle than hustle and his business partner Jason Geter, the new collaborative investment strategy focused on tech startups will allow high net worth individuals to participate in deals.

The strategy has evolved since Geter and Harris made their first investment twelve years ago into a company called Streetcred.com, a site that allowed fans to go online and share opinions about street culture. While that first deal didn’t work out, Geter and Harris both remained interested in the technology and startup scene and saw a new opportunity to leverage their networks and promote new businesses.

“We learned a lot,” says Harris. “Now we know where our demographic is.”

For Geter, that demographic is taking advantage of Atlanta’s surging position as a cultural and tecnological mecca in the United States. Indeed, Atlanta-area startups raised roughly $1.15 billion in 2018, a record for the region, according to data from Pitchbook and the National Venture Capital Association.

“Being in the city of Atlanta and with Georgia Tech producing so much talent, and coming from us being within the hip-hop culture which is always influencing and promoting things, we saw an opportunity,” says Geter. “In the past, we were always looking through the glass window and looking at ways we can participate earlier. And that’s by coming together to pool our resources so we can invest more.”

Harris and Geter aren’t the first hip-hop entrepreneurs to branch out into tech investment.

Calvin Broadus Jr. (better known as Snoop Dogg) closed a $45 million investment fund last year; Sean Carter, or “Jay Z” launched Marcy Venture Partners; the Chamillionaire, Hakeem Seriki, is an entrepreneur in residence at the LA-based firm Upfront Ventures and has his own app; and Nas, who founded Queensbridge Venture Partners, recently saw an exit when one of his companies, PillPack, was sold to Amazon for around $750 million.

“We are a group of guys and girls who’ve been doing business together over time. While we’ve been doing just fine on our own we thought that if we surround ourselves with like-minded individuals and pool our resources together we could do much more together than on our own,” says Harris.

Investors and entrepreneurs should think of Tech Cypha as an open-ended investment syndicate — like a rap version of SV Angels out of Silicon Valley.

“It’s people around our constituency who wake up knowing that there is dealing to be done,” says Geter.

While the Culture Genesis crew out of Los Angeles may seem slightly out of the Atlanta-based wheelhouse for Tech Cypha, the company’s co-founder Cedric Rogers spent a lot of time in Atlanta.

“I lived in Atlanta for many years and [Geter] and I have grown a relationship over seven years,” says Rogers. “I’m excited to work with these guys.”

For Harris, the opposite of moderate, immaculately polished with the spirit of a hustler and the swagger of a college kid, the investment into Culture Genesis is indicative of the type of deal that the syndicate will make. It’s got a media component, it’s leveraging new technology and it taps into the incredibly tech-forward community that comprises the rising middle class audience of urban (for lack of a better word) consumers.

Now the only question is whether Harris and Geder can find out what’s up and what’s happening next.

Contabilizei raises $20 million to ease Brazilians’ tax pain

Online tax filing and accounting service, Contabilizei, has raised $20 million in a new round of financing led by Point72 Ventures, the early stage investment arm associated with hedge fund guru Steven Cohen’s Point72 Asset Management. Smart money in both the venture and private equity space has been long Brazil for a bit, and the new investment […]

Online tax filing and accounting service, Contabilizei, has raised $20 million in a new round of financing led by Point72 Ventures, the early stage investment arm associated with hedge fund guru Steven Cohen’s Point72 Asset Management.

Smart money in both the venture and private equity space has been long Brazil for a bit, and the new investment provides even more firepower to the thesis that Brazil’s startup ecosystem is on the move.

“For the Brazilian ecosystem, the investment represents the trust and the opportunity that we have here in the Brazilian market. For quite some time it was difficult to attract this kind of investment from abroad,” says Contabilizei chief executive Vitor Torres. Even though we had a recession there are technology companies that are growing,” Torres says, saying that the company has already staved off acquisition offers and will eventually eye a potential public offering in U.S. or domestic markets.

Though it was only founded five years ago, the company already has 200 employees and more than 10,000 customers throughout Brazil.

Contabilizei has already audited more than 2 billion reals in customer revenue and saved its users over 500 million reals in taxes. For new companies, Contabilizei will also offer free business registration and formation filings. So far, the company has helped 5,000 new businesses get their paperwork done around the country.

“In Brazil, one of the greatest frictions for a small company is meeting its tax reporting requirements,” said Pete Casella, Head of Fintech & Financial Services Investments at Point72 Ventures. “By building an automated tax accounting service that can deliver services at a fraction of the cost of a traditional accountant, we believe that Contabilizei has established the high trust relationships that will enable it to serve customers in many new ways over the coming years.”

New investors also contributed to the round including the International Financial Corp., an investment arm of the The World Bank, and Quona Capital, Quadrant, and the Fintech Collective. They joined existing company backers Kaszek Ventures, e.Bricks, Endeavor Catalyst, and Curitiba Angels.

“Our goal is to simplify the entrepreneur’s routine so they can focus on their own business and not on bureaucracy. We are only at the beginning, and in three years we want to grow 15 times more,” said Vitor Torres, chief executiver and founder of Contabilizei, in a statement. “We were pioneers in the debureaucratization of accounting in the country and we managed to do it with a quality that surpasses 98% of our customers’ satisfaction.”

A photo of an egg has toppled reality star Kylie Jenner as Instagram’s most-liked post

Instagram has found something it likes more than a Kardashian-Jenner family baby, and it’s an egg. This weekend, a photo of a plain egg became the most-liked photo on Instagram, the social app owned by Facebook with over one billion users that’s reflective of internet culture. The photo, which you can see below in its […]

Instagram has found something it likes more than a Kardashian-Jenner family baby, and it’s an egg.

This weekend, a photo of a plain egg became the most-liked photo on Instagram, the social app owned by Facebook with over one billion users that’s reflective of internet culture.

The photo, which you can see below in its full glory, currently has more than 23 million likes at the time of writing. That has seen it surpass a February 18 photo from Kylie Jenner — the sister of Kim Kardashian — which announced the birth of her baby with rapper Travis Scott and has 18.2 million likes.

Unlike Jenner, who has 21 million Instagram followers, the egg account — “world_record_egg” — is a newcomer that seems to have been created in early January. Nothing is known of its ownership, although it now has 2.4 million followers which could — and I can’t believe I’m writing this… — make it an influencer account.

While much can be said about Jenner’s rise to fame, she’s a pretty successful entrepreneur. Her two-year-old ‘Kylie Cosmetics’ brand is estimated to gross over $600 million in annual revenue. While it is funny that a photo of an egg can take the record on Instagram there might be more to it. Jenner’s company trades on her brand, the egg could be a rejection or protest of today’s reality TV culture… which is best embodied by the Kardashians and, in particular, Kylie Jenner. That certainly seems the case looking at the splurge in new and egg-related comments on Jenner’s birth post from last year.

Maybe that’s wishful thinking and this is just another internet phenomenon that can’t be explained. It could simply be a joke that blew up, but don’t discount the potential that this is a stunt from a company launching a new product or wanting to make a splash.

Showing that she might have a sense of humor, 21-year-old Jenner acknowledged the new record in a video of her smashing an egg.

View this post on Instagram

Take that little egg

A post shared by Kylie (@kyliejenner) on

This is the second social media record set this year after Twitter got a new most-retweeted tweet — however, the roles were very much different.

Yusaku Maezawa, a Japanese billionaire who is paying Elon Musk’s SpaceX for a trip to the moon, saw a tweet that offered nearly $1 million in prize money for retweets surpass a true internet phenomenon, U.S. teen Carter Wilkerson. Back in April 2017, Wilkerson took to Twitter to plead for free chicken nuggets; his original tweet now has around 3.6 million retweets.