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 […]
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…
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.”
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.
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.
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.
Lisbon, characterized occasionally by some tech scene observers as ‘the warm Berlin’, has been threatening to generate more startups in the last few years, not least because it will now have the enormous Web Summit conference there for the next 10 years, and because it’s a cheap and great place to live. But the startups […]
Lisbon, characterized occasionally by some tech scene observers as ‘the warm Berlin’, has been threatening to generate more startups in the last few years, not least because it will now have the enormous Web Summit conference there for the next 10 years, and because it’s a cheap and great place to live. But the startups appearing have not quite been as numerous as many would like.
It’s therefore fantastic to see a new VC fund appearing in the city, set up by three experienced stalwarts of the scene.
Indico Capital Partners VC has now completed its first closing of €41M out of the €46M of commitments from investors from eight different countries. The fund will be aimed at Iberian early stage startups (that means Spain and Portugal), but of course those in particularly those based out of Portugal.
The fund says it will invest typically between €150,000 and €5M per portfolio company over their lifetime – pre-seed to series A, plus follow-on rounds. They say the first Indico investments have already been concluded and will be announced soon.
It’s far and away the first sizable, independent and private early-stage, tech-focused fund to be based in Lisbon and will focus on investments in B2B SaaS, Artificial Intelligence, Fintech and Cybersecurity to Marketplaces and B2C Platforms.
The fund comprises of three partners: Managing General Partner, Stephan Morais (former head of the leading corporate VC Caixa Capital), General Partner Ricardo Torgal (also former Caixa Capital senior investor) and Venture Partner Cristina Fonseca (co-founder and shareholder of Talkdesk).
Collectively the team has in the past invested in Farfetch, Unbabel, Codacy and many other success stories originating from Portugal over the past 6 years, in addition to Talkdesk itself.
The EIF (European Investment Fund), is the cornerstone investor of Indico, and has been joined by 20 other institutional and individual investors such as the IFD (Instituição Financeira de Desenvolvimento) through the Portugal Tech facility, Draper Esprit (a major global quoted VC fund based in the UK), pension funds, education and research institutions, wealth managers, high net worth individuals and many local and international tech entrepreneurs.
The fund is supported by InnovFin Equity, with the financial backing of the European Union under Horizon 2020 Financial Instruments and the European Funds for Strategic Investments (EFSI) set up under the Investment Plan for Europe.
Stephan Morais, Managing General Partner, said: “This is a milestone for the Portuguese ecosystem, we will keep on supporting the most promising Portuguese, and increasingly Iberian, early-stage tech startups, but now with an independent stable investment platform backed by a diversified global LP base.”
Ricardo Torgal, General Partner added that “VC is not hype, it’s about building a balanced portfolio and being there for the companies to help them grow to the next stage”.
Cristina Fonseca, Venture Partner, commented that “I have been backing many companies over the past few years as an angel investor and mentor, so it was an obvious decision to join the best investment team in the market with a solid track record. Early stage tech is where my heart is and this is a local nurturing activity before it becomes globally investable and scalable.”
Carrier billing is a convenient payment method for Apple ID that charges iTunes and App Store purchases to your mobile phone bill (or deducts them from your prepaid amount).
Apple’s carrier billing option for Apple ID purchases has expanded to an additional seven countries around the world. Customers in these countries who don’t have or don’t want to use a credit or debit card for their purchases can now take advantage of mobile phone billing.... Read the rest of this post here
Nathan Lustig Contributor Nathan Lustig is an entrepreneur and managing partner at Magma Partners, a seed-stage investment fund in Santiago, Chile. More posts by this contributor Latin America’s Movile is quietly building a mobile empire Latin America’s Groupon Mafia As the number of competitors in the ride-hailing industry dwindles, geographic expansion is emerging as the […]
Nathan Lustig is an entrepreneur and managing partner at Magma Partners, a seed-stage investment fund in Santiago, Chile.
As the number of competitors in the ride-hailing industry dwindles, geographic expansion is emerging as the next proving ground to determine who will be the victor in the ride-hailing market.
The race for control of the industry, which is estimated by Goldman Sachs to grow eightfold to $285 billion by 2030, is escalating with China’s Didi Chuxing already surpassing Uber as the most valuable startup in the world. With a recent valuation of approximately $56 billion, compared to Uber’s $48 billion, Didi is posing a real threat to Uber’s operations and shows no signs of slowing down. Cementing its position as the top ride-hailing service in China, Didi is now turning its attention to another region of the world that is still filled with vast opportunities and not yet dominated by a single taxi alternative: Latin America.
While many ride-hailing and sharing services have already sprung up and faced regulation in cities across Latin America such as Mexico City, Montevideo, and São Paulo, the region still presents an enormous opportunity for the companies that can adapt and move fast enough.
The current opportunities in Latin America
Unlike many other regions of the world, Latin America is still very much reliant on traditional forms of public transportation such as buses, trains, and subway systems. What’s more, larger cities such as São Paulo, Mexico City, and Bogota simply cannot support any more vehicles on the road without an infrastructure overhaul. Large metro areas are already at or above maximum capacity during peak hours, making owning and commuting with a car more of a hassle than a luxury. As a result, many commuters across Latin America are putting less importance on owning a vehicle and opting to use alternative modes of transportation and on-demand services instead.
Beyond the rising demand for alternative transportation options, it’s also worth noting that Latin America is the world’s second-fastest-growing mobile market. In a region of approximately 640 million people, there are more than 200 million smartphone users. By 2020, predictions say that 63% of Latin America’s population will have access to the mobile Internet. Latin American smartphone users have quickly adopted global apps, such as Uber and Facebook. However, tech companies have yet to fully tap into the region’s potential.
Chilean taxi drivers demonstrate along Alameda Avenue against US on-demand ride service giant Uber, in Santiago, on July 10, 2017. Uber smartphone app has faced stiff resistance from traditional taxi drivers the world over, as well as bans in some places over safety concerns and questions over legal issues, including taxes. (MARTIN BERNETTI/AFP/Getty Images)
The key players
According to a Dalia survey, Latin Americans with smartphones that live in urban areas are the most likely to have used a ride-hailing app or site. Overall, 45% have used an app, with Mexico taking the top position in the region at 58%.
Uber entered Latin America in 2013 and claims to have more than 36 million active users in the region, proving employment for more than a million drivers. The company quickly dominated Mexico, which is now its second-largest market after the U.S. In fact, up until recently Uber claimed a near monopoly on ride-sharing in Mexico with few competitors. Uber also has operations in more than 16 Latin American countries.
99 (formerly 99Taxis)
With an urban population of approximately 180 million, Brazil is the ultimate prize for ride-hailing and taxi companies with several services competing for market share. Most notably, 99 (formerly “99Taxis”) was able to gain momentum early on with exclusive services that extended beyond basic ride-hailing (such as its 99 TOP and 99 POP services) and better tools for its drivers.
With over 200,000 drivers and 14 million users, 99 attracted the attention of investors worldwide, including that of China’s Didi Chuxing. Didi invested $100 million into 99 in January 2018 before acquiring 99 entirely months later for nearly $1 billion to take on Uber in Latin America, shortly after it acquired Uber’s operations in China.
Rocket Internet -backed taxi booking service, Easy Taxi, started in Latin America in 2011, two years after Uber first started in San Francisco. The company provides an easy way to book a taxi and track it in real-time. Today, the company is owned by Maxi Mobility, which acquired the company from Rocket Internet in 2017 for an undisclosed amount. Maxi Mobility also owns Cabify, and operates across many Latin American markets, including Argentina, Mexico, Bolivia, Panama, Brazil, Peru, and Chile, in addition to a handful of markets elsewhere.
To solidify its position in the region, Easy Taxi merged with Colombian taxi-booking app Tappsi in 2015. Tappsi launched in Bogotá in 2012 and was doing quite well in the Colombian market. The merger allowed the companies to pool their resources just as other competitors, such as Uber, began entering the region.
Easy Taxi maintains impressive traction, raising more than $75 million to date. But as the ride-hailing battle in Latin America pushes forward, the company is rumored to be a likely investment or acquisition target for Uber, Didi, or the largest global investor in this space, Softbank.
Cabify is a Spanish company that provides private vehicles for hire via its smartphone app. Although founded in Madrid, Cabify has always positioned itself as a Latin American company, investing heavily across the region. The company was able to gain a strong foothold due to some significant funding raised by its parent company, Maxi Mobility. In January 2018, Maxi Mobility raised another $160 million and said the funding would be used to accelerate both of its companies, Cabify and Easy Taxi, in the 130 cities where they operate throughout Spain, Portugal, and Latin America.
Cabify reported it has over 13 million users and grew its installed-base by 500% between 2016 and 2017, tripling its user base and fulfilling six times more trips in 2017.
Cabify competes directly with Uber, 99, and Easy Taxi in Brazil; however, it reportedly has around 40% market share in Sao Pãolo, one of the largest cities in all of Latin America.
Smaller players to watch
Beat (Formerly Taxibeat)
Beat is a profitable ride-hailing service founded in Athens, Greece that also operates in Peru. Beat is slowly expanding its operations across Latin America, though expansion appears to be limited to Chile for now.
Toronto-based Nekso bet on the Latin American taxi-hailing market before its home market with a pilot launch in Venezuela in 2016. Nekso was able to gain acceptance from the taxi industries in Venezuela, Dominican Republic, Ecuador, and Panama with its slightly different approach to ride-hailing.
The company connects a network of 550+ licensed taxi companies with thousands of drivers and allows users to flag down a cab off the street and without using in-app requests. Nekso also uses artificial intelligence technology to offer drivers real-time updates on weather, events, and traffic data to predict areas of a city which may need more drivers. The company claims taxi drivers can spend up to two-thirds of their day looking for or waiting for riders and that Nekso technology helps drivers increase their daily rides by more than 25% percent.
At the end of 2017, Nekso boasted around 150,000 users and facilitated approximately 400,000 rides per month. Now, the company plans to make its debut in Canada as well as expand to more countries in South America, including Argentina, Colombia, Chile, and Peru.
Didi, 99, and the next phase
99’s new owner, Didi, which dominates the Asian market and was able to defeat Uber in China, has big plans for international expansion. Its acquisition of 99 reveals the potential it sees in Latin America but also adds to the complicated web of global ride-hailing services.
After Didi shut down and acquired Uber’s assets in China, it also bought a stake in Uber for $1 billion. Uber, Didi, and 99 are all backed by Softbank. However, everywhere outside of China, Didi and Uber are competing with each other. Didi’s full plans for 99 are not yet obvious, but the company has already set up an office in Mexico and begun poaching staff from Uber in Mexico.
With an infusion of capital, Latin America’s ride-hailing industry is multiplying. That said, companies that want to compete in the region will need to use an aggressive and strategic approach that can withstand the uniqueness of commuters and transportation options in the region. It’s only a matter of time until we see if these companies continue ramping up their operations for geographic domination, or if we see more and more partner up to advance their technologies and address other looming threats – such as bike sharing, scooter sharing, and even autonomous vehicles.
Two of the founders of 99, who sold their company to Didi, have already launched a dockless bike sharing startup called Yellow in Brazil and raised $9 million to grow its operations. No other scooter company has taken the plunge into Latin America yet besides Grin Scooters in Mexico City, but other larger cities such as Buenos Aires, Bogota, Santiago, and Lima would be ideal markets if the companies can figure out pricing as well as security and safety issues first.
Didi’s activity in Brazil and Mexico is sure to trigger a new wave of competition between existing ride-hailing players and create an even more tangled web of alliances and acquisitions. Whether or not these companies can adapt and move fast enough to rise to the top, and deal with the other looming alternative modes of transportation, remains to be seen.
People don’t eat enough fruit and vegetables, that’s despite an embarrassment of options today that include fast grocery delivery and takeout services with a focus on health. A study from the U.S-based Center for Disease Control and Prevention (CDC) released last November found that just one in ten adults in America “meet the federal fruit […]
People don’t eat enough fruit and vegetables, that’s despite an embarrassment of options today that include fast grocery delivery and takeout services with a focus on health.
A study from the U.S-based Center for Disease Control and Prevention (CDC) released last November found that just one in ten adults in America “meet the federal fruit or vegetable recommendations” each day. The bar isn’t that high. The recommendation is just 1.5-2 cups of fruit and two to three cups of vegetables per day, but failing to meet it can put people at risk of chronic diseases, the CDC said.
The problem is universal the world over, but perhaps most acute in the U.S, where finding healthy food is easier than ever. Amazon’s same-day grocery deliveries, make-it-at-home services like Blue Apron and various healthy takeout services have helped some people, but no doubt there’s much more to be done for standards to be raised across the nation and beyond.
That’s where one early-stage startup, Kencko, is aiming to make a difference by making fruit and vegetable more accessible. Its thesis is that wholly organic diets are daunting to most, but packaging the good parts in new ways can make it easier for anyone to be more healthy.
The company’s first offering is a fruit drink that can be made in minutes using just a sachet, water and its mixer bottle.
Kencko currently offers five different organic fruit and vegetable mixes
Just add water
Unlike other ‘instant’ mixer options, Kencko uses freeze-drying to turn fruit and vegetable mixes into sachets without compromising on health. That process — which is similar to how NASA develops food for astronauts — retains minerals, protein, vitamins and all the other good stuff typically lost in healthy drinks, the startup said. The fruit and vegetables used are organic and sourced from across the world — that’s broken down into more details on the Kencko website — while the mixes don’t contain sugar or other additives.
Kencko customers make their drink by mixing the sachet with water and shaking for one minute. Each sachet is 20g and, when combined with water, that gets you a 160g serving that has a 180-day shelf live. There are six different combinations, each one is a mixture of six fruit and vegetables.
Unlike others that pair with water, Kencko actually includes fruit pieces and seeds — I tested a batch. That’s pretty unique, although it is worth noting that some of the more berry fruit heavy combinations mix less efficiently than the plant-based ones, at least from my experience. As someone who lives in a city where fresh fruit and vegetables are easily found — thank you, Bangkok — I’m not the target customer. But I can readily recall living the busy 9-6 office life in London a decade ago, and back then I’d have been curious enough to at least take Kencko for a spin in my quest to be a little healthier.
Kencko is also affordable when compared to most health food options, which tend to be positioned as premium.
Packs are priced at $29.90 for ten sachets, $74.50 for 30 and $123.50 for 60. The startup offers a ‘Lifetime Founding Member’ package that gives 30 percent off those prices for an initial charge. That’s $32 for those wanting 10 sachets packages, $79.90 for 30 and $129 for 60.
Two of my Kencko mixes
More than pressed juice
Kencko — which means health in Japanese — is the brainchild of Tomás Froes, a former tech worker who got into veganism after being diagnosed with acute gastritis.
Froes, who is from Portugal and once ran an artisanal hot dog brand in China, was told that his ailment was treatable but that it would require a cocktail of pills for the rest of his life. Seeking an alternative, he threw himself into the world of alternative health and, after settling on a 90 percent fruit and vegetable diet, found that his condition had cleared without medicine.
Keen to help others enjoy the benefits of his journey, he began talking to nutritionists and experts whilst trying to figure out possible business options. In an interview with TechCrunch, Froes said he settled on a new take on the existing ‘health drink’ space that he maintains is inadequate in a number of ways.
“The end goal is to help consumers reach the recommendation of five servings/portions of fruit a day,” he explained. “That would be impossible to do if we excluded the seeds and bits of fruits like cold-pressed juice companies do. They press the juice out of the fruits, leaving the most nutritional part from pulp and the seeds out.”
“We blast freeze fruit and vegetables at -40 degrees which allows us to maintain the same nutritional properties as fresh fruit for longer periods. We then use a slow heat process of 60 degrees to evaporate only take the water-based parts without damaging nutrition,” Froes added.
Added that, Froes said, Kencko helps cut down on the use of plastic by using the same mixer, return customers only require new sachets.
As proof of Kencko’s versatility, he brought his mixer and sachets along to the vegan cafe we met at earlier this year when I visited London, putting me to shame for buying the cold pressed option — which was no doubt more expensive, to boot.
Kencko is based in New York but with a processing facility in Lisbon, Portugal. It is heavily focused on the U.S. market where it offers delivery in 24-48 hours, but it also covers the UK and Canada. There are plans to increase support, particularly in Asia.
Kencko’s Apple Watch app is in beta with selected users
Building a health food brand
Kencko was formed in 2017 and, after landing undisclosed seed funding, it launched its product in March of this year. Already it has seen progress; the startup recently entered the TechStars accelerator program in London as one of a batch of ten companies.
“I’m excited to work with Tomas and the Kencko team,” Eamonn Carey, who leads TechStars in London, told TechCrunch. “I first read about them on ProductHunt and bought into their mission straight away. Once I tasted the product for the first time, I was sold — both as a subscriber and an investor.”
Froes told TechCrunch that drinks are just the first phase of what Kencko hopes to offer consumers. He explained that he wants to move into other types of food and consumables in the future to help give people more options to get their daily portion of fruit and vegetables.
Up next could be Apple-based snacks. Foes shared — quite literally — a new batch of snack that’s currently in development and is made from the fruit. He believes it could be marketed a healthier option than crisps and other nibbles people turn to between meals. Further down the pipeline, he said, will be other kinds of food that maintain the 100 percent organic approach.
Beyond food, Kencko wants to build a close bond with its customers. It is developing iOS and Apple Watch apps that help its users to track their fruit and vegetable consumption, and more generally make their diet and routine healthier.
With the membership package and apps, it becomes clear that Kencko aspires to build a brand and not just sell a product online. That’s double the challenge (at least), and that makes the company one to watch.
Already it has found some success within tech circles such as TechStar’s Carey — people who aspire to eat and drink better but are pushed for time — but if Froes is to even begin to deliver on his mission then Kencko will need to go beyond the tech industry niche and attract mainstream consumers. For now though, the product is worth close inspection if you think your lifestyle is in need of a fruit boost.