All posts in “finance”

Microsoft’s new expense tracker Spend hits the App Store

The team behind mileage-tracking app MileIQ, a company Microsoft acquired a few years ago, is out with a new application. This time, the focus isn’t on tracking miles, but rather expenses. The new app, simply called “Spend,” arrived on the App Store on Thursday, offering automatic expense tracking for work reimbursement purposes or for taxes.

Spend doesn’t appear to be a part of some grand Microsoft plan to take on expense tracking industry giants, like Expensify or SAP-owned Concur, for example. At least, not at this time.

Instead, the app is a Microsoft Garage project, the App Store clarifies.

Microsoft Garage is the company’s internal incubator when employees can test out new ideas to see if they resonate with consumers and business users.

Through the program, a number of interesting projects have gotten their start over the years, like the Cortana-based dictation tool, Dictate; mobile design creation app Sprightly; short-form email app Send; the Word Flow keyboard for smartphones; a Bing-backed alternative to Google News; and dozens more.

The new Spend app, at first glance, looks well-designed and easy to use.

Like most expense trackers, it offers features like the ability to take photos of receipts, expense categorization features, and reporting.

However, what makes Spend interesting is the app’s automated tracking and matching, and its user interface for working with your receipts.

The app begins by automatically tracking all your expenses from a linked credit card or bank account. You can then swipe on the expenses to mark them as personal or business. These expenses are automatically categorized, and you can add extra tags for added organization.

You can also add notes to purchases, split expenses, and customize expense categories, in addition to tags.

And the app can generate expense reports on a weekly, monthly or custom bases, which can be exported at spreadsheets or PDFs. There’s a web dashboard for when you’re using the app at your computer, but Spend doesn’t appear on the MileIQ main website at this time. It does, however, have a support site.

The company says the new app is an early version, and they plan to revise it going forward as they make improvements. Microsoft has been asked for more details on its plans with Spend, and we’ll update if they have more to offer.

Twilio shops, Uber and Lyft IPO scuttlebutt, and Instacart raises $600M

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

This week we had the Three Excellent Friends (Connie Loizos, Danny Chrichton, and Alex Wilhelm) on hand to kick things about with Scale Venture Partner’s own Rory O’Driscoll.

As I’ve written the last few weeks, what a pile of news we’ve had recently. And like the last few episodes, we had to pick and choose what to drill into. This week: Twilio-Sendgrid, Palantir, Uber, Lyft, and Tencent Music IPOs, Instacart, and Saudi Arabia.

In order, I think? First, we tackled the week’s biggest venture-themed M&A: Twilio buying SendGrid. Keep in mind that they are both recent IPOs; Twilio went out in 2016, and SendGrid in 2017.

The $2 billion-ish all-stock transaction is effectively Twilio using its rich market cap (rich in terms of its revenue and profit multiples) to snag an obvious (though intelligent) extension of API-powered communications toolset.

Next up we dug into the chance that Palantir is worth $41 billion. Spoiler: It isn’t. Then we chatted the two other recently-floated IPO valuations for Uber ($120 billion) and Lyft ($15 billion). They probably make more sense, depending a little on how you add and then divide.

All that and we also touched on the recent delay in the Tencent Music IPO, a profitable company.

Then we riffed through the Instacart round ($600 million more at a $7.6 billion valuation; wow), and re-touched on Silicon Valley’s currently least popular dinner party topic: how much Saudi money has recently gone to work powering tech startups.

A big thanks to you for not only sticking with Equity for so long, but also for making it quite literally as popular as it has ever been. It’s super fun to have the biggest crew with us every week that we’ve ever had.

You, yes you, are a delight.

Equity drops every Friday at 6:00 am PT, so subscribe to us on Apple PodcastsOvercast, Pocket Casts, Downcast and all the casts.

These are the most successful companies to emerge from Y Combinator

Earlier this month, Brex, a credit card provider to startups, announced it had raised $125 million at a $1.1 billion valuation.

The round was impressive for a couple of reasons. 1. The founders are a pair of 22-year-olds that had set out to build a virtual reality company before pivoting to payments. And 2. They had only completed Y Combinator, a well-known Silicon Valley startup accelerator, the year prior.

Y Combinator is responsible for many successes in the startup world, certainly more than its fellow accelerators, which are all known to provide early-stage companies with a seed investment  — in YC’s case, $150,000 — mentorship and educational resources through a short-term program that culminates in a demo day.

Today, YC has released the latest list of its most successful companies since it began backing startups in 2005. Ranked by valuation and/or market cap, Brex, sure enough, is the youngest company to crack the top 20:

  1. Airbnb: An online travel community and room-sharing platform founded by Brian Chesky, Joe Gebbia and Nathan Blecharczyk. Valuation: $31 billion. YC W2009.
  2. Stripe: A provider of an online payment processing system for internet businesses founded by John and Patrick Collison. Valuation: $20 billion. YC S2009.
  3. Cruise: Acquired by GM in 2006, the company is building autonomous vehicles. It was founded by Kyle Vogt and Daniel Kan. Valuation: $14 billion. YC W2014.
  4. Dropbox: A file hosting service and workplace collaboration platform founded by Drew Houston and Arash Ferdowsi that went public in March. Market cap: >$10 billion. YC S2007.
  5. Instacart: A grocery and home essentials delivery service founded by Apoorva Mehta, Max Mullen and Brandon Leonardo. Valuation: $7.6 billion. YC S2012.
  6. Machine Zone: A mobile games company, founded by Mike Sherril, Gabriel Leydon and Halbert Nakagawa, known for “Game of War.” Valuation: >$5 billion. YC W2008.
  7. DoorDash: An app-based food delivery service founded by Tony Xu, Stanley Tang and Andy Fang. Valuation: $4 billion. YC S2013.
  8. Zenefits: The provider of human resources software for small and medium-sized businesses founded by Laks Srini and Parker Conrad. Valuation: $2 billion. YC W2013.
  9. Gusto: The provider of software that automates and simplifies payroll for businesses, founded by Josh Reeves, Tomer London and Edward Kim. Valuation: $2 billion. YC W2012.
  10.  Reddit: An online platform for conversation and thousands of communities founded by Alexis Ohanian and Steve Huffman. Valuation: $1.8 billion. YC S2005.
  11.  Coinbase: An digital cryptocurrency exchange and wallet platform founded by Brian Armstrong and Fred Ehrsam. Valuation ~$1.6 billion. YC S2012.
  12.  PagerDuty: A digital ops management platform for businesses founded by Baskar Puvanathasan, Andrew Miklas and Alex Solomon. Valuation: $1.3 billion. YC S2012.
  13.  Docker: A platform for applications that gives developers the freedom to build, manage and secure business-critical applications, founded by Solomon Hykes and Sebastien Pahl. Valuation: $1.3 billion. YC S2010.
  14.  Ginkgo Bioworks: A biotech company focused on designing custom microbes founded by Reshma Shetty, Jason Kelly, Barry Canton and others. Valuation: >$1 billion. YC S2014.
  15.  Rappi: A Latin American on-demand delivery startup founded by Felipe Villamarin, Simon Borrero and Sebastian Mejia. Valuation: >$1 billion. YC W2016.
  16.  Brex: A B2B financial startup that provides corporate cards to startups. Its founders include Henrique Dubugras and Pedro Franceschi. Valuation: $1.1 billion. YC W2017.
  17.  GitLab: A developer service founded by Sid Sijbrandij and Dmitriy Zaporozhets, that aims to offer a full lifecycle DevOps platform. Valuation: $1.1 billion. YC W2015.
  18.  Twitch: An Amazon-acquired live streaming platform for video games used by millions. Its founders include Emmett Shear, Justin Kan, Michael Seibel and Kyle Vogt. YC W2007.
  19.  Flexport: A logistics company that moves freight globally by air, ocean, rail and truck founded by Ryan Petersen. Valuation: ~$1 billion. YC W2014.
  20.  Mixpanel: A user analytics platform that helps each person at a business understand its users founded by Suhail Doshi and Tim Trefren. Valuation: >$865 million. YC S2009.

The full list of Y Combinator’s 100 most successful companies is available here.

SpankChain spanked

SpankChain, a cryptocurrency aimed at decentralized sex cams, has announced that a hacker stole about $38,000 from their payment channel thanks to a broken smart contract. They wrote:

At 6pm PST Saturday, an unknown attacker drained 165.38 ETH (~$38,000) from our payment channel smart contract which also resulted in $4,000 worth of BOOTY on the contract becoming immobilized. Of the stolen/immobilized ETH/BOOTY, 34.99 ETH (~$8,000) and 1271.88 BOOTY belongs to users (~$9,300 total), and the rest belonged to SpankChain.

Our immediate priority has been to provide complete reimbursements to all users who lost funds. We are preparing an ETH airdrop to cover all $9,300 worth of ETH and BOOTY that belonged to users. Funds will be sent directly to users’ SpankPay accounts, and will be available as soon as we reboot Spank.Live.

The hacker used a ‘reentrancy’ bug in which the user calls the same transfer multiple times, draining a little Ethereum each time. The bug is the same one that previously affected the DAO.

The company pointed out that a security audit on their smart contract would have cost $50,000, a bit more than the amount lost. “As we move forward and grow, we will be stepping up our security practices, and making sure to get multiple internal audits for any smart contract code we publish, as well as at least one professional external audit,” they wrote.

I’ve reached out to the company for clarification but in short it seems the spanker has become the spankee.

The Hack Fund will use crypto to give startups early liquidity

Now that “utility” tokens have become a popular and international way to fund major blockchain projects, a pair of investors are creating a new way to turn tokens into true equities. The investors, Jonathan Nelson and Laura Nelson, have created Hack Fund, an early stage investment vehicle that allows startups to launch what amounts to “blockchain stock certificates,” according to Jonathan.

“Our previous business model exchanged equity from startup companies for services, and wrapped that equity into funds that we then sold to investors. These fund investors have included family offices, institutions, and high net worth individuals,” said Jonathan. “However, Hack Fund represents a new business model. Because Hack Fund leverages the blockchain, investors all over the world at all levels can participate in startup investing by trading blockchain stock certificates. Also, its SEC compliant structure means that it is also available to a limited number of accredited investors in the US.”

The team originally created Hackers/Founders, a tech entrepreneur group in Silicon Valley, and they now support 300,000 members in 133 cities and 49 countries. Hack Fund is a vehicle to support some of the startups in the Hackers/Founders network.

“HACK Fund, through its Hackers/Founders heritage, has a large, unique global network,” said Jonathan. “This provides Hack Fund with unparalleled reach and deal flow across the global technology market. There are a few blockchain-based funds, but they are limited themselves to blockchain-only investments. Unlike typical venture funds, HACK Fund will provide quick liquidity for investors, leveraging blockchain technology to make typically illiquid private stocks tradeable.”

The idea behind Hack Fund is quite interesting. In most cases investing in a company leads to up to ten years of waiting for a liquidity event. However, with blockchain-based stock certificates investors can buy shares that can be bought and sold instantly while company performance drives the value up or down. In short, startups become liquid in an instant, which can be a good thing or a bad thing, depending on the founding team.

“HACK Fund is a publicly traded closed-end fund. The fund’s venture investments are valued on a quarterly basis by an independent third party, audited and posted to the blockchain for all token holders to review. There are no K-1 statements issued, there is no partnership/LLC, rather HACK Fund is an investment company akin to Berkshire Hathaway which invests in the same manner as early-stage venture capital,” said Jonathan.

The team is raising a little over $2 million in an ICO to build out the fund. They’ve already raised most of their $100 million total goal from individual investors but the ICO will let retail investors buy some of the tokens as they are made available on the BRD wallet.