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Ben, a London-based employee benefits and rewards platform, has raised $2.5 million in funding. The seed round is led by Cherry Ventures, and Seedcamp.
A number of angel investors with backgrounds in fintech and HR tech also participated. They include Paul Forster (founder of Indeed), Taavet Hinrikus (founder of TransferWise), Carlos Gonzalez-Cadenas (previously an exec at GoCardless but now a partner at Index Ventures), Philip Reynolds (VP of Engineering at Workday), and Matt Robinson (founder of Nested).
Part fintech, part HR play, Ben has built an employee benefits platform to enable SMEs to offer much more personalised and flexible benefits to employees. The U.K. startup does this via a SaaS for managing benefits, including a benefits marketplace, combined with per-employee debit cards powered by Mastercard.
The idea is to give employees more individual choice around which benefits they choose, while making it easy to on-board additional providers. This can be via the marketplace or through whitelisting merchant or merchant categories via the employer issued Mastercards, such as food and drink or travel and mobility, or a specific co-working space etc.
“While most companies offer benefits in order to attract and engage team members, and ultimately drive productivity, most solutions don’t deliver the desired outcomes,” Ben co-founder and CEO Sebastian Fallert tells me. “To have impact, offerings need to work for the individual employees; after all, a ‘benefit’ that’s relevant for somebody working from home in their mid-40s could be next to useless for a new starter in their 20s”.
Fallert says that providing the required level of personalised benefits has been impossible for most small to medium-sized companies due to the “high cost and complexity” of creating and administering personalised programmes. This has seen only large enterprises able to offer flexible benefit programmes where employees get to pick from a range of options. Ben aims to remedy this.
“The Ben software platform allows companies to load funds and set individual spend rules on how these can be used,” explains Fallert. “Employees are then able to choose from group benefits, such as private medical insurance, mental wellbeing services, or dental plans, while a real per-employee Mastercard opens the door to pretty much any product or service in a tax-efficient and compliant way”.
The result is a “win-win,” says the Ben CEO. “Employees get tailored benefits, and companies only pay for what’s used, take advantage of tax exemptions and preferred pricing, while streamlining the administration”.
The Ben platform is currently used by smaller and mid-market companies, especially those with a distributed team. “It’s these firms in particular that have to deal with the growing complexity of their programmes to keep up with a more diverse and increasingly remote/distributed workforce,” says Fallert.
Meanwhile, Ben has three revenue streams: a SaaS fee; interchange revenue every time its cards get used; and, of course, affiliate revenue from its marketplace.
Adds the Ben CEO: “One of our core hypotheses is that there are so many amazing services out there that simply can’t get through to companies as they’re often not relevant for all employees, such as debt consolidation or fertility treatment. With Ben, they get easy distribution on standard commercial terms while companies get to offer an additional benefit without any additional overhead”.
Despite China’s history of stringent media control, an industry of uninstitutionalized, individual publishers has managed to flourish on social media platforms like Tencent’s WeChat and ByteDance’s Toutiao. These self-publishers are called “We Media” in the Chinese internet lexicon, denoting the independent power of citizen journalists and content creators.
Meanwhile, self-publishers have always had to tread carefully on what they post or risk being targeted by censors who deem them illegal or inappropriate.
The topics they cover are myriad, ranging from fashion and food to politics and current affairs. WeChat, a major destination for self-publishers, hinted last July it had 20 million “public accounts”, platforms for individuals to broadcast content and in businesses’ case, reach customers. In 2020, 360 million users read articles published on WeChat public accounts, WeChat founder Allen Zhang disclosed recently.
Sina Weibo, China’s answer to Twitter, has long attracted citizen journalists. In the early days of COVID-19, millions of Chinese users rushed to Weibo seeking facts from accounts like that of Fang Fang, an author who chronicled what she had witnessed in Wuhan.
Now, a new development in China’s internet regulation is about to further restrict China’s tens of millions of self-publishers.
Public accounts that “provide online news service to the public shall obtain the Internet News Information Permit and other relevant media accreditation,” according to a new regulation (translation here) published January 22 by the Cyberspace Administration of China, the country’s internet watchdog.
In the following days, WeChat, Baidu, Sohu and other online information services began notifying publishers of the new rule. “If your account lacks relevant accreditation, you are advised not to edit, report, publish or comment on news about politics, the economy, military, foreign affairs or other major current events,” according to the notice sent by WeChat.
“The WeChat Public Account Platform always commits to providing a green, healthy online environment to users,” the message adds.
The requirement of news accreditation will likely be a death knell for independent social media publishers that have taken on journalistic roles, particularly those covering politics. “It’s not something you can obtain easily unless you’re an official news outlet or an organization with unmatched resources and background,” a WeChat account publisher told TechCrunch.
China’s control on news reaches into every corner of the internet, and regulations are always playing catchup with the pace at which new media, such as microblogs and live streaming, flourishes.
From 2017 to 2018, the cyberspace authority granted news permits to a total of 761 “internet news services,” which together operated 743 websites, 563 apps, 119 forums, 23 blogs, 3 microblogs, 2285 public accounts, one instant messenger, and 13 live streaming services. In other words, hard news is off limits for internet services of these categories that operate without a news license. It remains to see how platform operators like WeChat and Sina Weibo work to enforce the rules.
Heightening oversight on online information could have merit when it comes to battling misinformation. The new regulation also calls on operators to set up mechanisms like a creator blacklist to root out fake news. But the regulation overall could have an adverse impact on freedom of expression in China, the International Federation of Journalists warned.
“The vaguely defined new rule comes at a time when ‘self-media’ has gained huge popularity in China and journalists have begun using such platforms to publish work which was axed by their organisations,” the IFJ said in a statement published on January 28.
Source: https://techcrunch.com/2021/01/31/china-crack-down-self-publishing/
Access to the internet in Myanmar dropped sharply after the military detained leaders of ruling party National League for Democracy, including Aung San Suu Kyi, and declared a state of emergency. The NLD won a wide majority of parliamentary seats in November’s general election, which the military alleges was the result of election fraud. In a statement on military-owned television, the army said a year-long state of emergency would be declared in Myanmar and power handed to military chief Min Aung Hlaing.
According to NetBlocks, a non-governmental organization that monitors digital rights, cybersecurity and internet governance around the world, internet disruptions began around 3AM Monday morning local time, with national connectivity falling to 75% of ordinary levels, and then reaching about 50% around 8AM. Data shows that the cuts affected several network operators, including the state-owned Myanma Posts and Telecommunications (MPT) and Telenor. NetBlocks said “preliminary findings [indicate] a centrally ordered mechanism of disruption targeting cellular and some fixed-line services, progressing over time as operators comply.”
Update: Internet connectivity in #Myanmar has fallen to 50% of ordinary levels as of 8:00 a.m. local time amid an apparent military coup and the detention of civilian leaders; pattern of disruption indicates centrally issued telecoms blackout order
https://t.co/Jgc20OBk27 pic.twitter.com/71fHI3sRv3
— NetBlocks (@netblocks) February 1, 2021
The United States Embassy’s American Citizen Services said on Twitter that internet and phone connectivity are both limited throughout Yangon and Nay Pyi Taw.
Update: We are aware that internet and phone connectivity is limited throughout Yangon and Nay Pyi Taw.
— American Citizen Services – Burma (Myanmar) (@ACSRangoon) February 1, 2021
Aye Min Thant, a former correspondent for Reuters who is now the Tech for Peace program manager at Phandeeyar, a tech accelerator in Yangon, tweeted that she had been logged out of Signal and Telegram overnight, and can’t log in again because cell service is shut down, preventing her from getting verification codes.
The detainment of Suu Kyi and other National League for Democracy leaders comes days after Myanmar’s military attempted to downplay concerns about a coup by stating it would protect the country’s constitution, despite its allegations of vote fraud in November’s election.
Myanmar came under direct military rule after a 1962 coup replaced the civilian government. In 1990, free elections were held and the NLD won, but the military refused to give up power, placing Suu Kyi under house arrest. After 2011, a transition to democratic rule gradually began, but the military still controlled much of the government.
The NLD has also been accused of being complicit in the military’s ethnic cleansing campaign against Rohingya Muslims and disenfranchising opponents.
While Myanmar’s government does not practice direct censorship of internet content, Freedom House gave the country a score of only 36 out of 100 in 2019, citing manipulation of online content by both the military and NLD, and prosecution that forces individuals to self-censor. In June 2019, the government banned the internet in parts of Rakhine and Chin State, the sites of ongoing fighting between the Myanmar military and Arakan Army. Human rights observers including the Human Rights Watch have said that the internet ban prevents people in those areas from communicating with their families, getting information about COVID-19 or accessing aid.
You’ve just landed on the web version of my weekly newsletter, Human Capital. It’s where we look at the recent events of the week pertaining to diversity, equity, inclusion and labor in tech.
You can sign up here to get Human Capital delivered straight to your inbox every Friday at 1 p.m. PT.
Let’s jump in.
Alpha Global forms to unite Alphabet workers around the world
Alpha Global announced its formation earlier this week to unite Alphabet workers around the world, including those from the Alphabet Workers Union in the United States, The Verge reported. Alpha Global, which is affiliated with the UNI Global Union, aims to create a common worker strategy, support fellow workers and more.
“A just Alphabet has wide-ranging implications for our democracies and societies,” Alpha Global said in a statement. “That is why we are joining together to demand fundamental human rights for all workers in Alphabet operations, including the right to form or join a union and the right to bargain collectively.”
I should mention that you’ll be able to hear more about Alphabet Workers Union at Alpha Global at TC Sessions: Justice directly from Parul Koul, the executive chair of Alphabet Workers Union. You can snag your tickets here for just $5.
Apple Watch launches a Black unity collection
Image Credits: Apple
In celebration of Black History Month, Apple introduced the Black Unity Collection for Apple Watch.
Something feels off about the watch band, but I can’t quite put my finger on it. Perhaps it’s the commoditization of Black culture.
Chan Zuckerberg Initiative launches the Justice Accelerator Fund
The Chan Zuckerberg Initiative has created a new criminal justice reform group, Recode reported this week.
With $350 million put toward the new Justice Accelerator Fund over the next five years, the organization will focus on criminal justice advocacy. JAF will be led by Ana Zamora, CZI’s current director of criminal justice.
NLRB gets a new acting general counsel
Biden named Peter Sung Ohr the new acting general counsel for the National Labor Relations Board. As Vice’s Lauren Kaori Gurley noted, Ohr’s appointment has the potential to be very good for gig workers and workers rights, in general.
Peter Sung Ohr, the new Acting General Counsel of the @NLRB, gave Instacart workers the "ok" on a union election in 2020 and wrote a decision that allowed @uchicagogsu grad students to unionize in 2017, a good sign for gig workers & grad student organizing going forward
— Lauren Kaori Gurley (@LaurenKGurley) January 26, 2021
ServiceNow launches racial equity fund
With $100 million set aside for the fund, the enterprise software company’s racial equity fund aims to “drive more sustainable wealth creation by funding homeownership, entrepreneurship, and neighborhood revitalization within Black communities in 10 regions across the United States,” according to a press release.
Here’s a nugget on how it’ll work:
The ServiceNow Racial Equity Fund will buy smaller community loans to increase the lending capacity for local banks. By increasing access to capital, the investment will facilitate homeownership and entrepreneurship in Black communities, leading to job creation and wider economic growth. The investment, which is the first of its kind for ServiceNow, will initially focus investments in Boston, Chicago, Dallas, Houston, New York, Orlando, San Diego, the San Francisco Bay Area, Seattle, and Washington, D.C. – locations where ServiceNow has significant operations and community presence.
Hello friends, this is Week in Review.
Last week, I dove into the AR maneuverings of Apple and Facebook and what that means for the future of the web. This week, I’m aiming to touch the meme stock phenomenon that dominated American news cycles this week and see if there’s anything worth learning from it, with an eye towards the future web.
If you’re reading this on the TechCrunch site, you can get this in your inbox every Saturday morning from the newsletter page, and follow my tweets @lucasmtny.
(Photo by Mike Egerton/PA Images via Getty Images)
The big thing
This week was whatever you wanted it to be. A rising up of the proletariat. A case of weaponized disinformation. A rally for regulation… or perhaps deregulation of financial markets. Choose your own adventure with the starting point being one flavor of chaos leading into a slightly more populist blend of chaos.
At the end of it, a lot of long-time financiers are confused, a lot of internet users are using rent money to buy stock in Tootsie Roll, a lot of billionaires are finding how intoxicating adopting a “for-the-little-guy!” persona on Twitter can be, and here I am staring at the ceiling wondering if there’s any institution in the world trustworthy enough that the internet can’t turn it into a lie.
This week, my little diddy is about meme stocks, but more about the idea that once you peel away the need to question why you actually trust something, it can become easier to just blindly place that faith in more untrustworthy places. All the better if those places are adjacent to areas where others place trust.
The Dow Jones had its worst week since October because retail investors, organized in part on Reddit, turned America’s financial markets into the real front page of the internet. Boring, serious stocks like Facebook and Apple reported their earnings and the markets adjusted accordingly, but in addition to the serious bits of news, the Wall Street page was splashed with break neck gains from “meme stocks.” While junk stocks surging is nothing new, the idea that a stock can make outrageous gains based on nothing and then possibly hold that value based on a newly formed shared trust is newer and much more alarming.
The most infamous of these stocks was GameStop. (If you’re curious about GameStop’s week, there are at least 5 million stories across the web to grab your attention, here’s one. Side note: collectively we seem to have longer attention spans post-Trump.)
So, Americans already don’t have too much institutional faith. Looking through some long-standing Gallup research, compared to the turn of the century, faith in organized religion, the media, most wings of government, big business and banks has decreased quite a bit. The outliers in what Americans do seem to trust more than they did 20 or so years ago are small businesses and the military.
This is all to say that it’s probably not stellar that people don’t trust anything, and me thinking that the internet could probably disrupt every trusted institution except the military probably only shows my lack of creative thinking when it comes to how the web could democratize the Defense Department. As you might guess from that statement, I think democratizing access to certain institutions can be bad. I say that with about a thousand asterisks leading to footnotes that you’ll never find. I also don’t think the web is done disrupting institutional trust by a long shot, for better or worse.
Democratizing financial systems sounds a lot better from a populist lift, until you realize that the guys users are competing against are playing a different game with other people’s money. This saga will change plenty of lives but it won’t end particularly well for a most people exposed to “infinite upside” day trading.
Until this week, in my mind Robinhood was only reckless because it was exposing (or “democratizing access to” — their words) consumers to risk in a way that most of them probably weren’t equipped to handle. Now, I think that they’re reckless because they didn’t anticipate that OR how democratized access could lead to so many potential doomsday scenarios and bankrupt Robinhood. They quietly raised a $1 billion liquidity lifeline this week after they had to temporarily shut down meme stock trading, a move that essentially torched their brand and left them the web’s most hated institution. (Facebook had a quiet week)
This kind of all feeds back into this idea I’ve been feeding that scale can be very dangerous. Platforms seem to need a certain amount of head count to handle global audiences, and almost all of them are insufficiently staffed. Facebook announced this week in its earnings call that it has nearly 60,000 employees. This is a company that now has its own Supreme Court; that’s too big. If your institution is going to be massive and centralized, chances are you need a ton of people to moderate it. That’s something at odds with most existing internet platforms. Realistically, the internet would probably be happier with fewer of these sweeping institutions and more intimate bubbles that are loosely connected. That’s something that the network effects of the past couple decades have made harder but regulation around data portability could assist with.
Writing this newsletter, something I’m often reminded is that while it feels like everything is always changing, few things are wholly new. This great NYT profile from 2001 written by Michael Lewis is a great reminder of that, chronicling a 15-year-old who scammed the markets by using a web of dummy accounts and got hounded by the SEC but still walked away with $500k. Great read.
In the end, things will likely quiet down at Robinhood. There’s also the distinct chance that they don’t and that those meme traders just ignited a revolution that’s going to bankrupt the company and torch the globals markets, but you know things will probably go back to normal.
Until next week,
Lucas Matney
(Photo by MANDEL NGAN/POOL/AFP via Getty Images)
Other things
SEC is pissed
I’ll try to keep these updates GameStop free, but one quick note from the peanut gallery. The SEC isn’t all that happy about the goings ons in the market this week and they’re mad, probably mostly at Robinhood. They got pretty terse with their statement. More
Facebook Oversight Board wants YOU
Zuckerberg’s Supreme Court wants public comment as it decides whether Facebook should give Trump his Instagram and Facebook accounts back. I’m sure any of Facebook’s executives would’ve stopped building the platform dead in its tracks in the years after its founding if they knew just how freaking complicated moderation was going to end up being for them, but you could probably have changed their mind back by showing them the market cap. More
Apple adtech-killing update drops in spring
After delaying its launch, Apple committed this week to the spring rollout of its “App Tracking Transparency” feature that has so much of the adtech world pissed. The update will force apps to essentially ask users whether they’d like to be tracked across apps. More
Robert Downey Jr. bets on startups
Celebrity investing has been popular forever, but it’s gotten way more common in the venture world in recent years. Reputation transfer teamed with the fact that money is so easy to come by for top founders, means that if you are choosing from some second-tier fund or The Chainsmokers, you might pick The Chainsmokers. On that note, actor Robert Downey Jr. raised a rolling fund to back climate tech startups, we’ve got all the deets. More
WeWork SPAC
Ah poor Adam Neumann, poor SoftBank. If only they’d kept their little “tech company” under wraps for another couple years and left that S-1 for a kinder market with less distaste for creative framing. It seems that WeWork is the next target to get SPAC’d and be brought onto public markets via acquisition. I’m sure everything will go fine. More
Tim Cook and Zuckerberg spar
Big tech is a gentlemen’s game, generally big tech CEOs play nice with each other in public and save their insults for the political party that just fell out of power. This week, Tim Cook and Mark Zuckerberg were a little less friendly. Zuckerberg called out Apple by name in their earnings investor call and floated some potential unfair advantages that Apple might have. Them’s fighting words. Cook was more circumspect as usual and delivered a speech that was at times hilariously direct in the most indirect way possible about how much he hates Facebook. More
Extra things
Tidbits from our paywalled Extra Crunch content:
The 5 biggest mistakes I made as a first-time startup founder
“I and the rest of the leadership team would work 12-hour days, seven days a week. And that trickled down into many other employees doing the same. I didn’t think twice about sending emails, texts or slacks at night and on weekends. As with many startups, monster hours were simply part of the deal.”
Fintechs could see $100 billion of liquidity in 2021
“For the fourth straight year, the publicly traded fintechs massively outperformed the incumbent financial services providers as well as every mainstream stock index. While the underlying performance of these companies was strong, the pandemic further bolstered results as consumers avoided appearing in-person for both shopping and banking. Instead, they sought — and found — digital alternatives.”
Rising African venture investment powers fintech, clean tech bets in 2020
“What is driving generally positive venture capital results for Africa in recent quarters? Giuliani told TechCrunch in a follow-up email that ‘investment in Africa is being driven on the one hand by a broadening base for early-stage ecosystem support organizations, including accelerators, seed funds, syndicates and angel investing,” and “consolidation,” which is aiding both “growth-stage deals and a burgeoning M&A market.'”
Source: https://techcrunch.com/2021/01/31/institutional-trust-is-the-real-meme/
