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Monetizable mood boards might sound like the moonshot idea that no one asked for, but when you think about it, the vision is already informally happening in various corners of the internet. A young generation of users shops with community in mind, whether that’s buying merchandise from your favorite influencers or giving into those Instagram advertisements after spending way too much time on the grid.
As more users think of shopping as a social, digital-first activity, The Landing, a seed-stage startup coming out of stealth, is hoping to win over those who have an affinity for designing homes and spaces. On The Landing, users can create, and shop from, room designs to help furnish their homes.
Image Credits: The Landing
“There’s no contextually rich, visual shopping destination, where you could curate and discover and share and shop all in one place,” co-founder Miri Buckland said. The Landing hopes to be that destination.
Started by Buckland and Ellie Buckingham, The Landing is launching with $2.5 million in financing, in a round led by Aileen Lee at Cowboy Ventures. Lee will be taking a board seat. Other investors include Dara Treseder, the CMO of Peloton, Manish Chandra and Tracy Sun, the founders of Poshmark, Unshackled, Designer Fund, and Progression Fund.
The Landing began as a pandemic pivot. Buckland and Buckingham were always interested in solving the pain point of contextual furnishing for users, but began by physically moving people into apartments and helping them set up different furniture. Then, the pandemic hit and limited the ability to do high-touch services. Buckingham says that this was “potentially the best forcing function” to focus on what kind of business The Landing wanted to be.
“I don’t need to be the person moving into your apartment with a couch,” she said. “It was about the importance of empowering creativity and empowering individuals to create digital and physical spaces.” That’s when they dropped the moving service business, and instead used furnishing as a vector to solve the problem of contextual and social e-commerce.
It’s a smart idea that has not gone unnoticed. Houzz, a Sequoia-backed home improvement startup, connects users to products from third-party retailers as well as services from architects, designers, or contractors. There’s also Modsy, which has raised north of $70 million to date, which helps users virtually redesign their homes.
Buckingham worked for Modsy when she was at business school, where she first started noticing that she disagreed with the startups’ main thesis.
“Their motto was basically a digital rendition of an existing human service,” she said. “And I came away from the experience not super convinced that the service model was the scalable, future answer to consumerization of access to design.” She noticed that the younger generation was looking for a self-serve, customizable answer, instead.
Miri Buckland and Ellie Buckingham, the co-founders of The Landing.
The Landing is launching with creative tooling capabilities, which allow users to build and design spaces within its platform. In the coming months, the team is focused on adding a social layer atop the design tool, with features like profiles, discovery, fede, and commenting.
The Landing’s Slack channel is currently being used to discuss these features and what is most in-demand from early users.
The founders aren’t worried about a lack of demand, or only being a platform for the few times that people furnish their homes throughout their lifespan. As Buckland pointed out, people browse Zillow all the time, and have Reddit channels about dream homes, creating designs, and more. The startup is aiming to serve that population as well — the dreamers and not just the realists.
Memmo.me, a startup allowing users to pay celebrities for personalized video messages, is announcing that it has raised $10 million in Series A funding.
“We’re really excited about our mission to break down these barriers [and help talent] connect one-to-one instead of one-to-thousands,” said co-founder and CEO Gustav Lundberg Toresson.
He added that celebrities are embracing this as a new source of income. It’s particularly appealing during the pandemic, but he predicted that celebrities will still be excited about “making this much money from their living rooms” after the pandemic ends.
The concept probably reminds you of Cameo (indeed, Carole Baskin of “Tiger King” fame has presence on both platforms), but while Cameo is U.S.-based, Memmo was founded in Stockholm, and Lundberg Toresson said its strategy is both global and localized — the company is currently operating localized marketplaces for Sweden, Germany, Finland, Norway, the United Kingdom, Spain, Italy and Canada, as well as a general global market.
“We want to be the place where you can find everyone from world famous talents like a soccer or basketball star, to the local musician down the road,” he said. “It’s all about using localization to help you find who’s most relevant for you, wherever you are.”
The startup says it has been used to send more than 100,000 messages globally, and that sales grew 50% every month between July of last year and January 2021.
The round was led by Left Lane Capital, with the firm’s founder and managing parter Harley Miller joining the Memmo board. Delivery Hero co-founder Lukasz Gadowski, FJ Labs, Depop CEO Maria Raga, Zillow co-founder Spencer Rascoff, former Groupon operations director Inbal Leshem, Voi Technology co-founder Fredrik Hjelm, former Udemy CEO Dennis Yang and Wolt co-founder Elias Aalto also participated.
“We’ve been impressed with the pace at which Memmo has expanded their offering across markets, where localization is critical to unlocking marketplace liquidity,” Miller said in a statement. “The ability to monetize the gap between wealth and fame for talent & celebrities, all the while allowing them to engage deeply with fans, is a trend that was only further underscored by the pandemic.”
Although Left Lane is based in New York, Lundberg Toresson said he was particularly excited about the firm’s marketplace expertise, and that its investment does not signal an imminent U.S. launch.
Memmo has now raised a total of $12 million. The new funding will allow the startup to add new features like live videos and to build out its business offerings, where companies can hire celebrities to create promotional videos for external marketing or internal employee motivation.
Coinbase’s S-1 publicly dropped this morning with much anticipation. My colleague Alex Wilhelm has the high-level details, but there was one major wrinkle for the crypto trading darling: two of its early investors seem to be cutting down their stakes pre-IPO.
The most notable case is Union Square Ventures, the prominent venture firm where Fred Wilson co-led the Series A round into the company back in 2013, which was the first investment made under the firm’s then newly christened blockchain thesis.
Over the past two years — which is the extent of disclosures that Coinbase includes in its S-1 filing — USV has been rapidly selling off its holdings in the company across multiple transactions, mostly selling to other venture firms around the cap table. Since late 2019, the firm has sold off approximately 28% of its holdings in Coinbase.
USV currently owns about 7.3% of Coinbase’s outstanding shares, or roughly 13.9 million of a total of 191.3 million based on Coinbase’s disclosed share count. As the following table indicates, USV has conducted four separately-dated transactions to sell nearly 5.5 million shares of its holdings in secondary transactions.
Fellow early-stage fintech investor Ribbit Capital, which joined USV in the Series A, also conducted a smaller secondary transaction in November 2019, selling a bit less than 5% of its outstanding shares (559,228 of 11,995,949 shares).
What’s interesting is not just that USV in particular is selling a large part of its holdings, but also the price they were willing to sell at. According to Coinbase’s filing, USV sold 3.35 million shares at $23 per share in late 2019, and later sold about 2 million shares at $28.83 per share in mid-2020.
Those prices are well-below Coinbase’s Series E price per share of $36.19, which it received in late 2019. It’s also below the price set by the secondary transactions of Coinbase CEO and co-founder Brian Armstrong and Paradigm founder and Coinbase co-founder Fred Ehrsam, who received $32.57 for their shares in late 2018.
Now, there are a couple of nuances to consider here. The secondary sale of preferred shares will typically convert to common (even if the sale is to another preferred shareholder), which means that the shares sold would hold fewer investor rights and provisions, and therefore, are intrinsically worth less to investors. This was the case with Coinbase as it disclosed in its filing, and that may explain at least some of the gap in the price.
The timing of USV’s investment is also perhaps notable. The bulk of USV’s investment in Coinbase comes from its 2012 vintage fund, which if it follows default industry practice, has a targeted 10-year shelf life. That means that the fund is designed to pay out its returns by 2022 — which was quickly coming up for the firm back in 2019 and 2020. There may have been some pressure to sell at least some of the firm’s stake early to make the firm’s LPs happier.
It’s also useful to note that USV and Ribbit mostly sold to other, existing investors like A16Z and Paradigm, which shows that other investors deeply burrowed on the cap table were quite excited to put more money to work in Coinbase, even at a fairly late stage.
Nonetheless, it’s rare for an ambitious fund like USV to sell arguably its single most important investment of all time just a year or two before what may well be one of the largest blockbuster IPOs of 2021. At a valuation of $100 billion let’s say (which is what Coinbase priced at a recent private market transaction), USV’s stake would be worth about $7.3 billion. Yet, the shares it sold over the past two years would have been worth several billion at exit, and it sold them for about $140 million in cash.
The mystery here is perhaps solved a bit. Fred Wilson, in a blog post from early 2018, talked about “taking money off the table” in earlier USV investments like Twitter, where the firm “sold about 30% of our position in those two secondary transactions for about $250mm and returned 2x the entire fund to our investors.” Then referring to crypto, he said:
If you are sitting on 20x, 50x, 100x your money on a crypto investment, it would not be a mistake to sell 10%, 20% or even 30% of your position. Selling 25% of your position on an investment that is up 50x is booking a 12.5x on the entire investment, while allowing you to keep 75% of it going. I know that many crypto holders think that selling anything is a mistake. And it might be. Or it might not be. You just don’t know.
Clearly, he took money off the table. It’s a financially-astute, risk-adjusted approach, even if it left billions of returns behind. A16Z and Paradigm are, I am sure, quite pleased to have made the purchase.
Atlanta is coming up in the tech world with several newly minted billion-dollar businesses hailing from the ATL and the city’s local venture capital community is taking notice.
Even as later stage firms like the newly minted BIP Capital rebrand and with increasingly large funds, earlier stage firms like Tech Square Ventures are staffing up and adding new partners.
The firm’s latest hire is Vasant Kamath, a general partner who joins the firm from Primus Capital, a later stage investment vehicle based out of Atlanta. Before that, he was managing investments for the private office of the Cox family.
Originally from Augusta, Ga. Kamath left the south to attend Harvard and then went out west for a stint at Stanford Business School.
In between his jaunts North and West Kamath spent time in Atlanta as an investment banker with Raymond James in the early 2000s, the beginnings of a lifelong professional career in technology. Before business school, Kamath worked at Summit Equity Partners in Boston investing in later stage technology companies.
Kamath settled in Atlanta in 2010 just as a second wave of technology companies began making their presence felt in the city.
The new Tech Square Village general partner pointed to Atlanta’s underlying tech infrastructure as one reason for the move to early stage. One pillar of that infrastructure is Georgia Tech itself. The school, whose campus abuts the Tech Square Ventures offices, is one of the top engineering universities in the country and the breadth of talent coming out of that program is impressive, Kamath said.
There’s also the companies like Airwatch, MailChimp, Calendly and others that represent the resurgence of Atlanta’s tech scene, Tech Square Ventures’ newest general partner said.
Not only are young companies reinvesting in the city, but big tech giants and telecom players like T-Mobile, Google, and Microsoft are also establishing major offices, accelerators, and incubators in Atlanta.
“There’s a lot of momentum here in early stage and i think it’s building. It’s the right time for a firm like TSV to take advantage of all of the things,” Kamath said.
Another selling point for making the jump to early stage investing was the relationship that Kamath had established with Tech Square Ventures founder, Blake Patton. A serial entrepreneur who’s committed to building up Atlanta’s startup ecosystem, Patton has been the architect of Tech Square Ventures’ growth through two separate initiatives.
In all, the firm has $90 million in assets under management. What began with a small pilot fund, Tech Square Ventures Fund 1, (a $5 million investment vehicle) has expanded to include two larger funds raised in conjunction with major industrial corporate partners like AT&T, Chick-Fil-A, Cox Enterprises, Delta, Georgia-Pacific, Georgia Power, The Home Depot, UPS, Goldman Sachs, and Invesco, under the auspices of a program called Engage. Those funds total $54 million in AUM and the firm is halfway toward closing a much larger second flagship fund under the Tech Square Ventures name with a $75 million target.
All this activity has led to a blossoming entrepreneurial community that early stage funds like Tech Square Ventures hopes to tap.
“We see a fair number of folks from these large corporations spinning out and starting things themselves,” said Kamath. “For a decade plus, you have multiple entrepreneurs doing really well and increasing acceleration in terms of climate and exits.”
And more firms from outside of the region are beginning to take notice.
“I think that is happening,” said Kamath. “You might seen investment from outside the region. At the seed stage it’s harder you do need to have feet on the ground right when they’re starting and building their business. Once they’ve been vetted and had that early round of investment you will definitely see a lot of activity. We’re seeing more investment at the Series A and B from out of town. That’s the strategy.”
It all points to a burgeoning startup scene that’s based in a collaborative approach, which should be good not only for Tech Square Ventures, but the other early stage funds like Atlanta Ventures, Outlander Labs, BLH Ventures, Knoll Ventures and Overline, that working to support the city’s entrepreneurs, Kamath said.
Lob is a startup promising to help businesses deliver physical mail more quickly and affordably, and with more personalization.
The company estimates that its platform has been used to deliver mail to one in two U.S. households. And today, it’s announcing that it has raised $50 million in Series C funding.
CEO Leore Avidar told me he founded Lob with Harry Zhang nearly a decade ago to “allow people to send mail programmatically.” Over time, the company has become increasingly focused on enterprise clients — its 8,500-plus customers include Twitter, Expedia and Oscar Health — although Avidar said it will always offer a product for small businesses as well.
Avidar explained that in a digital age, there are two main categories of physical mail that Lob continues to support for its customers. First, there’s mail sent for “a regulatory purpose, a compliance purpose” — in other words, mail that businesses are legally required to send in printed form. Second, there’s direct mail sent as marketing, which Avidar said many companies are rediscovering.
“Marketing as a whole is always trying to find a unique channel in order to make their customer aware of whatever their call to action is,” he said. “Right now, social is really expensive, Google AdWords is super expensive, with email you can easily unsubscribe. No one’s been paying attention to direct mail, and the prices don’t scale with supply and demand.”
Lob says that it can reduce the execution time on a direct mail campaign by 95%, from 90 days to less than a day. For the actual printing and delivery, it has built out a network of partners across the country. And other companies like PostPilot and Postalaytics are building on top of the Lob platform.
The startup has now raised $80 million in total funding. The new round was led by Y Combinator Continuity Fund — Lob participated in the YC accelerator and the Continuity Fund also led the startup’s previous funding.
Avidar said the company is planning to triple the amount of physical mail delivered through the platform this year, which means the round will allow it to continue expanding the Print Delivery Network, as well as increasing headcount to more than 260 employees.
“Lob is leading the digital transformation of direct mail, a business process used by every company on Earth that has remained virtually untouched by software,” said YC Managing Partner and Lob board member Ali Rowghani in a statement. “Lob’s platform delivers exceptional value to some of the world’s largest senders of direct mail by lowering cost and improving deliverability, tracking, reporting, and ROI. Even for the most sophisticated senders of direct mail, Lob’s API-driven product is vastly superior to legacy approaches.”
Source: https://techcrunch.com/2021/02/25/lob-raises-50m-for-its-direct-mail-platform/
