African-focused talent recruitment and outsourcing company TalentQL today announced that it has been accepted into Techstars Toronto.
The company will join nine other startups in the accelerator’s class of 2021. This comes two weeks after Nigerian bus-booking platform Plentywaka announced its participation in the program as well.
TalentQL was launched last November by serial entrepreneurs Adewale Yusuf, Opeyemi Awoyemi and Akintunde Sultan. Before TalentQL, Yusuf co-founded Nigeria-based tech media publication Techpoint Africa; Awoyemi co-founded online recruitment site Jobberman; and Sultan founded nonprofit tech accelerator DevCareer.
The company has a “talent pool” developers join before passing through different assessments. Once the engineers pass the assessments, they can join the company’s “talent network” to access opportunities.
The pandemic accelerated the need for international companies to seek cheaper and remote talent around the world. TalentQL is hoping to tap into what it thinks is a gold mine. According to Yusuf, the company, which is also U.S.-based, wants to decentralize access and democratize opportunity for Africa’s top tech talents.
For most of its local clients, TalentQL mainly assists with recruitment. The other model entails hiring vetted engineers for international companies, managing them, and providing tax and health insurance services.
“We’re coming to the market to support the talent with health insurance, some tools to work with and a community to be part of. These are some of the offerings I think sets us apart from other companies,” Yusuf said.
But despite that, the company has faced the same challenge that has plagued the space — the lack of senior engineering talent. When most engineers reach that level of expertise, they tend to leave the country to the U.S. and Europe for better opportunities or, better still, launch their own startups. It’s a problem Andela faced in the past, resulting in the layoff of 400 junior developers “due to market demand for more senior engineering talent.”
Yusuf says this is why the company is pursuing a Pan-African and diasporan play (Africans in the U.S. and Europe), hoping to fill in the gap with senior talent from these places. And to further consolidate its Pan-African ambitions, it is planning to open an office in Kenya in the coming months.
Although TalentQL is fully remote, Yusuf says this has to happen to establish the right kind of understanding between on-the-ground recruiters and the engineers.
“We want a situation where when we’re recruiting from other countries, our technical recruiters are from those countries. We want them to be able to speak the language of these engineers and understand the culture of their countries,” he said.
TalentQL currently has over 100 tech skills available with more than 2,000 developers on its platform. These developers cater to clients from the U.S., Europe, Nigeria and Kenya. The CEO says the company is also in talks with some Fortune 500 companies to execute placements for their African expansion.
In addition to the $300,000 pre-seed secured last year, the 6-month-old company will receive a $120,000 investment from Techstars. But besides the funding, Techstars’ backing will be crucial in two ways, according to Yusuf. First is how it operates going forward in a crowded tech talent marketplace with the likes of Ethiopia’s Gebeya and Nigeria’s Decagon and Semicolon. The other would be helping the company to be a global company, not just an African one.
For Sunil Sharma, the managing director of Techstars Toronto and an investor in five Nigerian startups, Techstars’ investment in TalentQL gives the accelerator a chance to participate in the burgeoning tech talent space.
“The rise of Nigeria is more widely appreciated now in terms of technology sectors like finance, mobility and e-commerce, where talented Nigerians are not only bringing innovation and disruption but are doing so rapidly and at scale. Equally as intriguing is the opportunity relating to talent itself as Nigerians and Africans across the continent are contributing more to supporting tech companies across the world, and we think this is just the start.”
Everli, the European marketplace for online grocery shopping that started in Italy but now also operates in Poland, Czech Republic and France, has raised a $100 million in Series C funding.
The round is led by Verlinvest, with participation from new investors Luxor, DN Capital, C4 Ventures, and Convivialité Ventures. FITEC (part of Fondo Italiano d’Investimento), 360 Capital, Innogest, and DIP also followed on.
Everli, formerly called Supermercato24, says it will use the injection of capital to accelerate growth and further expand its international footprint.
Founded in 2014, Everli lets customers order from local supermarkets for delivery. The company uses gig economy-styled personal shoppers who go into the store and ‘pick’ the products ordered and then deliver them same-day, or for an added cost within an hour. The company charges a delivery fee to consumers, but also generates revenue from fees charged to partnering merchants, and, notably, through advertising.
It has become the delivery partner of some of Europe’s largest grocery brands, offering access to over 300,000 products across the 70 cities it operates in. And, like other online grocery offerings, Everli has benefited from a boost in e-commerce and a reliance on delivery services prompted by the pandemic and country lockdowns.
“Everli is focused specifically on the grocery space,” says Federico Sargenti, CEO at Everli. “Rather than small baskets, or picking up just the basic essentials, Everli is focused on delivering whatever you need right up to your full weekly shop, with same-day delivery and a one-hour delivery window of your choice.”
He says that what further differentiates Everli is its strong relationships with retailers, and the use of their existing infrastructure. “Instead of being tethered and restricted to a radius around our own expensive central warehouses, we are able to operate across a much wider geographical footprint, entering small-to-medium density areas and offering many customers their first opportunity to receive same day groceries, [all] while retaining sustainable unit economics”.
Sargenti describes Everli as more similar to Instacart than many other European delivery firms, including the new crop of dark stores or those that offer groceries as a secondary service to takeouts. “[This is] why we’re leading the grocery space in Europe and securing brands like Lidl, Kaufland, and Carrefour,” adds Sargenti.
In 2020, Everli sales almost quadrupled to $130 million. That growth is happening more and more outside Italy, with its international expansion now responsible for over 20% of orders.
“We are proud to have played a role in helping many people during these difficult times, but we are only getting started, as this industry will never be the same again,” says Sargenti in a statement. “The shift to online delivery is not reversing, and expectations on all sides are only increasing. We have built a model which we believe offers unparalleled value to consumers, through wide access to the retailers and products they love, even in less urban areas, and to retailers, who are now able to affordably compete online and reach a whole new consumer base”.
Adds Simone Sallustio, Executive Director at Verlinvest: “Everli combines its tech & data excellence with the grocery retail experience of its partners and this combination provides it with the perfect position to cement itself as the European e-grocery market leader, delivering the best experience to consumers, value to retail partners, and digital activation to brands”.
If you develop software for a large enterprise company, chances are you’ve heard of Tricentis. If you don’t develop software for a large enterprise company, chances are you haven’t. The software testing company with a focus on modern cloud and enterprise applications was founded in Austria in 2007 and grew from a small consulting firm to a major player in this field, with customers like Allianz, BMW, Starbucks, Deutsche Bank, Toyota and UBS. In 2017, the company raised a $165 million Series B round led by Insight Venture Partners.
Today, Tricentis announced that it has acquired Neotys, a popular performance testing service with a focus on modern enterprise applications and a tests-as-code philosophy. The two companies did not disclose the price of the acquisition. France-based Neotys launched in 2005 and raised about €3 million before the acquisition. Today, it has about 600 customers for its NeoLoad platform. These include BNP Paribas, Dell, Lufthansa, McKesson and TechCrunch’s own corporate parent, Verizon.
As Tricentis CEO Sandeep Johri noted, testing tools were traditionally script-based, which also meant they were very fragile whenever an application changed. Early on, Tricentis introduced a low-code tool that made the automation process both easier and resilient. Now, as even traditional enterprises move to DevOps and release code at a faster speed than ever before, testing is becoming both more important and harder for these companies to implement.
“You have to have automation and you cannot have it be fragile, where it breaks, because then you spend as much time fixing the automation as you do testing the software,” Johri said. “Our core differentiator was the fact that we were a low-code, model-based automation engine. That’s what allowed us to go from $6 million in recurring revenue eight years ago to $200 million this year.”
Tricentis, he added, wants to be the testing platform of choice for large enterprises. “We want to make sure we do everything that a customer would need, from a testing perspective, end to end. Automation, test management, test data, test case design,” he said.
The acquisition of Neotys allows the company to expand this portfolio by adding load and performance testing as well. It’s one thing to do the standard kind of functional testing that Tricentis already did before launching an update, but once an application goes into production, load and performance testing becomes critical as well.
“Before you put it into production — or before you deploy it — you need to make sure that your application not only works as you expect it, you need to make sure that it can handle the workload and that it has acceptable performance,” Johri noted. “That’s where load and performance testing comes in and that’s why we acquired Neotys. We have some capability there, but that was primarily focused on the developers. But we needed something that would allow us to do end-to-end performance testing and load testing.”
The two companies already had an existing partnership and had integrated their tools before the acquisition — and many of its customers were already using both tools, too.
“We are looking forward to joining Tricentis, the industry leader in continuous testing,” said Thibaud Bussière, president and co-founder at Neotys. “Today’s Agile and DevOps teams are looking for ways to be more strategic and eliminate manual tasks and implement automated solutions to work more efficiently and effectively. As part of Tricentis, we’ll be able to eliminate laborious testing tasks to allow teams to focus on high-value analysis and performance engineering.”
NeoLoad will continue to exist as a stand-alone product, but users will likely see deeper integrations with Tricentis’ existing tools over time, include Tricentis Analytics, for example.
Johri tells me that he considers Tricentis one of the “best kept secrets in Silicon Valley” because the company not only started out in Europe (even though its headquarters is now in Silicon Valley) but also because it hasn’t raised a lot of venture rounds over the years. But that’s very much in line with Johri’s philosophy of building a company.
“A lot of Silicon Valley tends to pay attention only when you raise money,” he told me. “I actually think every time you raise money, you’re diluting yourself and everybody else. So if you can succeed without raising too much money, that’s the best thing. We feel pretty good that we have been very capital efficient and now we’re recognized as a leader in the category — which is a huge category with $30 billion spend in the category. So we’re feeling pretty good about it.”
During every economic boom, there are startup investors who appear on the scene from new corners. Some churn out; others earn the respect of the old guard over time.
Jake Paul would be happy to be in the latter camp. Then again, the 24-year-old didn’t become a YouTube star by being conventional. Little wonder that Paul is now jumping into venture capital with an outfit that’s branded the Anti Fund. Newly formed with serial entrepreneur Geoffrey Woo, the endeavor is traditional in some ways but has a decidedly different point of view, say the two.
Some of the basics: Anti Fund is not a discrete pool of capital but is instead using AngelList’s Rolling Funds platform, which enables investors to raise money through a quarterly subscription from interested backers. Among those who’ve already committed capital are Marc Andreessen and Chris Dixon of Andreessen Horowitz.
Why choose a rolling fund instead of a traditional fund? For one thing, Paul and Woo were drawn to its Rule 506(c) structure, which enables issuers to broadly solicit and generally advertise an offering. Because Anti Fund plans to focus largely on consumer-focused brands and next-generation creator platforms in particular, “we want to be able to promote and advertise our fund,” says Woo, who most recently founded a nutrition-based food and beverage company and earlier in his career sold a company to Groupon.
Paul also wants to ensure his fans can get involved if they want. “I have followers are different reasons, and they want to be involved in what I’m doing. If they’re involved in our fund, then that’s more people rooting for us and our portfolio companies to win. We almost create this army that’s pushing all of these companies forward.”
Anti Fund plans to write checks of between $100,000 and $1 million to one to two startups every quarter. The goal, says Paul, is to be the “biggest rolling fund on AngelList” investing “around $10 million to $20 million a year.”
Anti Fund is just the newest effort to come from the world of social media influencers. As we reported earlier this month, the management company of another YouTube star, MrBeast, has dived into the world of venture capital with a $20 million fund it assembled with commitments from social media creators. Dispo, a photo-sharing app cofounded by YouTube star David Dobrik also attracted widespread attention and funding earlier this year. Not last, a new startup called Creative Juice just raised funding to provide equity-based financing to YouTube creators. MrBeast, whose real name is Jimmy Donaldson, is among its investors.
“I think a lot of creators with newfound wealth — a lot of YouTubers or Instagram models — don’t necessarily know what to do with their money,” says Paul, who has already diversified into boxing, making his professional boxing debut last year. “I’m trying to lead the way.”
Neither Paul nor Woo is new to startup investing. Woo has invested in roughly 20 startups on his own, including Paribus, an email widget that saved consumers money and that was acquired by Capital One. Paul, meanwhile, previously cofounded another small venture outfit called TGZ Capital that he says participated in the funding rounds of 15 startups.
One of these was Quip, a seven-year-old oral care company that has raised $62 million in funding, according to Crunchbase. Another company backed by Paul is Triller, the social video app that briefly became the most-downloaded free app in Apple’s App Store last summer when its much bigger rival TikTok was facing an uncertain future in the U.S.
Triller has since lost enough of that momentum that talk of going public via a special purpose acquisition vehicle has yet to lead to a tie-up, six months after the company reportedly began exploring the possibility. Still, as a stakeholder, Paul is keeping it in the headlines, including by providing it with exclusive rights to stream a pay-per-view boxing match between himself with former MMA wrestler Ben Asken on April 17.
Interestingly, it’s because Paul moved from L.A. to Miami to train for the fight that he met Woo, a Californian who visited Miami this past January for what was supposed to be a weekend trip and wound up staying. The two say they happened to hit it off at a tech event and, after establishing they had mutual friends, connected over their interest in performance nutrition, with Paul investing in Woo’s newest company, HVMN.
Last month, they decided to partner on Anti Fund, too.
Whether the two succeed as business partners will take time to learn. Certainly, they both have a strong work ethic. Woo has started three companies since graduating from Stanford with a computer science degree. Though Paul makes what what seems an inordinate amount of money for creating YouTube videos, he has created thousands of them in order to amass his more than 20 million followers.
It’s also clear that, as with his social media career, Paul is taking boxing seriously. During his most recent fight, in November, he knocked out former NBA player Nate Robinson in the second round. His first boxing match, against fellow YouTuber AnEsonGib in January of last year, also ended in a knockout just 2 minutes and 18 seconds into the fight.
Many professional athletes see the fights as mere stunts, given Paul’s famous made-for-video antics, from a short-lived marriage, to disregarding the concerns of neighbors in West Hollywood, to being charged by police last June for criminal trespass and unlawful assembly connected with the looting of an Arizona mall.
An obvious risk is that the best deal-makers in the world will see Anti Fund as a stunt, too, or else that something that Paul says or does will ruffle feathers. As industry watchers know, investors’ excitement over Dobrik’s Dispo dissipated quickly after Business Insider first detailed various accusations of misconduct against members of the Dobrik’s online squad, including an accusation of rape against one of Dobrik’s friends that allegedly took place during a video shoot.
Paul, who dropped out of high school as a senior to pursue a career as an influencer, is well aware of the Dobrik scandal. It’s because he has grown up online, in fact, that he’s not concerned about something from his past threatening his future.
“It’s definitely [risky to be in my position]. Your life is put on display when you choose to be a celebrity and specifically a vlogger. But because I’ve lived online, everyone’s seen everything already,” he says.
He also thinks that “VCs and people in the business world understand more and more how to work” with influencers and other celebrities who have enormous followings and are bringing them along as their careers evolve. “At the end of the day,” he says of business partners, “if someone is a good person and you have a relationship established with them, that’s what really matters.”
We’ve got the details on Boston Dynamics’ upcoming warehouse robot Stretch, Apple releases security patches and Cazoo is going public via SPAC. This is your Daily Crunch for March 29, 2021.
The big story: Boston Dynamics shows off its next commercial robot
Boston Robotics continues its transformation from research organization to commercial robotics company: Stretch is the company’s commercial version of Handle, a wheeled robot that could navigate around objects and pick up a 100-pound crate. With Stretch, the wheels have become less prominent, while the team has added a “perception mast” that allows the robot to see while it moves around and picks objects in a warehouse environment.
Stretch is currently in prototype form. The company plans to build the first units this summer and actually make it available for sale next year.
The tech giants
Apple releases iPhone, iPad and Watch security patches for zero-day bug under active attack — Apple said the vulnerability, discovered by security researchers at Google’s Project Zero, may have been “actively exploited” by hackers.
IBM launches its first quantum developer certification — The “IBM Quantum Developer Certification” focuses on IBM’s own software tools.
Startups, funding and venture capital
DiDi Chuxing expands to South Africa, to take on Bolt and Uber — Founded in 2012, the Beijing-based company claims to serve over 550 million users in 16 countries across Asia, Europe, Latin America and Australia.
Singular is a new Paris-based VC firm with $265M — Raffi Kamber and Jérémy Uzan want to build a leading European VC firm from Paris.
UK’s Cazoo will list on the NYSE by way of a SPAC, valuing it at $7B and raising $1.6B — The U.K. used-car sales portal has been on a major fundraising tear in the last year.
Advice and analysis from Extra Crunch
The NFT craze will be a boon for lawyers — Legal implications are the crux of the NFT trend.
Will the pandemic spur a smart rebirth for cities? — In this time of urban reset, which smart city technologies will transform how we live our lives?
CEO Manish Chandra and investor Navin Chaddha explain why Poshmark’s Series A deck sings — Beyond TAM, founders should explain how they’ll reach key metrics.
(Extra Crunch is our membership program, which helps founders and startup teams get ahead. You can sign up here.)
Everything else
Visa supports transaction settlement with USDC stablecoin — Visa has announced that transactions can be settled using USD Coin, a stablecoin powered by the Ethereum blockchain.
US cuts trade ties to Myanmar, leaving internet access uncertain — In a statement, U.S. Trade Representative Katherine Tai said the trade suspension would be “effective immediately” and will remain in place “until the return of a democratically elected government.”
TC Early Stage will dive deep on how to fundraise for your startup — Take a look at the fundraising sessions going down at TC Early Stage, which takes place later this week on April 1 and 2.
The Daily Crunch is TechCrunch’s roundup of our biggest and most important stories. If you’d like to get this delivered to your inbox every day at around 3pm Pacific, you can subscribe here.