Category: SoFi

June 1, 2019 Off

Equity transcribed: Is the tech press too positive in its coverage of startups?

By Jill T Frey

Welcome back the latest transcribed edition of Equity, the TechCrunch podcast that takes a closer look at the startup headlines from the week.

Kate Clark and Alex Wilhelm kick this week off by discussing comments on Twitter made by Y Combinator co-founder Paul Graham about the tech press. They then took a look at Uber’s first-quarter numbers, Brex raising, SoFi raising (and entering talks to buy the naming rights for the upcoming Los Angeles Rams stadium) and a lot more.

Here’s a sample:

Alex: Uber’s expectations were low. They had set, in their last S-1/A, these figures out and they came in the middle of revenue and loss expectations. I think the phrase is priced in, and that’s an odd place to be.

Kate: Yeah. It’s good that they came in on expectations. Lyft, you remember, had losses that were way, way, way higher than expected. But I

Read the rest
June 1, 2019 Off

Startups Weekly: Will the real unicorns please stand up?

By Jill T Frey

Hello and welcome back to Startups Weekly, a newsletter published every Saturday that dives into the week’s noteworthy venture capital deals, funds and trends. Before I dive into this week’s topic, let’s catch up a bit. Last week, I wrote about the sudden uptick in beverage startup rounds. Before that, I noted an alternative to venture capital fundraising called revenue-based financing. Remember, you can send me tips, suggestions and feedback to [email protected] or on Twitter @KateClarkTweets.

Here’s what I’ve been thinking about this week: Unicorn scarcity, or lack thereof. I’ve written about this concept before, as has my Equity co-host, Crunchbase News editor-in-chief Alex Wilhelm. I apologize if the two of us are broken records, but I think we’re equally perplexed by the pace at which companies are garnering $1 billion valuations.

Here’s the latest data, according to Crunchbase: “2018 outstripped all previous years in terms of … Read the rest

May 31, 2019 Off

Is the tech press too positive in its coverage of startups?

By Jill T Frey

Hello and welcome back to Equity, TechCrunch’s venture capital-focused podcast, where we unpack the numbers behind the headlines.

It’s our first week in the new TechCrunch podcast studio, or it was for Kate Clark and Chris Gates. Alex Wilhelm will be back in SF next week. For now, we fired up the mics and dug into what was a veritable barrage of news.

First, Paul Graham’s contentious comments. The co-founder of Y Combinator tweeted some criticism of the tech press on Thursday; naturally, Kate and Alex had a few thoughts. In summary, Graham doesn’t seem to understand what it is we tech journalists do, and that’s a problem.

Next … Read the rest

May 29, 2019 Off

Online lender SoFi has quietly raised $500 million in funding, led by Qatar

By Jill T Frey

Usually when it comes to big sums of funding, companies like to boast. Online lending startup Social Finance, better known as SoFi, took another tack this morning, quietly announcing in a press release that it has closed half a billion dollars in a single funding round led by Qatar Investment Authority, a Doha, Qatar-based private equity and sovereign wealth fund.

Even in a world now awash with rounds in the multiple hundreds of millions of dollars, the financing is notable. First, it’s the third giant round in recent years for the nearly eight-year-old, San Francisco-based company. Its biggest round to date came in September 2015, when SoftBank led a $1 billion round in the company. SoftBank’s then COO, Nikesh Arora, who was part of the funding announcement, abruptly left the Japanese conglomerate the following year, but SoftBank CFO Alok Sama maintains a board seat.

In February 2017, SoFi raised … Read the rest

May 16, 2019 Off

Part fund, part accelerator, Contrary Capital invests in student entrepreneurs

By Jill T Frey

First Round Capital has both the Dorm Room Fund and the Graduate Fund. General Catalyst has Rough Draft Ventures. And Prototype Capital and a few other micro-funds focus on investing in student founders, but overall, there’s a shortage of capital set aside for entrepreneurs still making their way through school.

Contrary Capital, a soon-to-be San Francisco-based operation led by Eric Tarczynski, is raising $35 million to invest between $50,000 and $200,000 in students and recent college dropouts. The firm, which operates a summer accelerator program for its portfolio companies, closed on $2.2 million for its debut, proof-of-concept fund in 2018.

“We really care about the founders building a great company who don’t have the proverbial rich uncle,” Tarczynski, a former founder and startup employee, told TechCrunch. “We thought, ‘What if there was a fund that could democratize access to both world-class capital and mentorship, and really increase Read the rest