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Affirm, Airbnb, C3.ai, Roblox, Wish file for tech IPO finale of 2020

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Editor’s note: Get this free weekly recap of TechCrunch news that any startup can use by email every Saturday morning (7 a.m. PT). Subscribe here.

The wait was long but this week the time was right: Airbnb finally filed its S-1 and so did Affirm, C3.ai, Roblox, and Wish. We are likely to see these five price on public markets before the end of an already superlative year for tech IPOs. The ongoing pandemic and political turmoil were not scary enough, apparently.

This coming decade, you have to think that we’ll see a more even spread of tech companies going public. Many of the companies above have been bottled up for years behind privately funded growth strategies. Today, however, the industry has a better grasp of SPACs and direct listings, and various funding routes. Companies have more options from their founding for how they might grow and exit one day. Public investors in 2020 also seem to have a deeper appreciation for the current revenue numbers and future growth opportunities for tech companies. Why, I can still remember all the geniuses who bragged about shorting the Facebook IPO not so long ago.

Will we see a more even spread of where IPOs come from? While all of this week’s filers are headquartered in San Francisco or environs, that now feels almost like a coincidental reference to the years when these companies were founded. More states have been minting their own unicorns, with Ohio-based Root Insurance recently going public and Utah-based Qualtrics heading (back) that way. Tech startups are now global, meanwhile, and plenty of countries are working to keep their unicorns closer to home than New York.

On to the headlines from TechCrunch and Extra Crunch:

If you didn’t make $1B this week, you are not doing VC right (EC)

Affirm files to go public

Inside Affirm’s IPO filing: A look at its economics, profits and revenue concentration (EC)

Airbnb files to go public

5 questions from Airbnb’s IPO filing (EC)

The VC and founder winners in Airbnb’s IPO (EC)

Roblox files to go public

What is Roblox worth? (EC)

Wish files to go public with 100M monthly actives, $1.75B in 2020 revenue thus far

Unpacking the C3.ai IPO filing (EC)

With a 2021 IPO in the cards, what do we know about Robinhood’s Q3 performance? (EC)

(Photo by Win McNamee/Getty Images)

What does a Biden administration mean for tech?

What does Joe Biden intend as president around technology policy? On the one hand, tech companies might not be returning to the White House too fast. “All told, we’re seeing some familiar names in the mix, but 2020 isn’t 2008,” Taylor Hatmaker explains about potential presidential appointments from the industry. “Tech companies that emerged as golden children over the last 10 years are radioactive now. Regulation looms on the horizon in every direction. Whatever policy priorities emerge out of the Biden administration, Obama’s technocratic gilded age is over and we’re in for something new.”

However, tech industries and companies focused on shared goals might find support. In a review of Biden’s climate-change policies, Jon Shieber looks at major green infrastructure plans that could be on the way.

Any policies that a Biden administration enacts would have to focus on economic opportunity broadly, and much of the proposed plan from the campaign fulfills that need. One of its key propositions was that it would be “creating good, union, middle-class jobs in communities left behind, righting wrongs in communities that bear the brunt of pollution, and lifting up the best ideas from across our great nation — rural, urban and tribal,” according to the transition website. An early emphasis on grid and utility infrastructure could create significant opportunities for job creation across America — and be a boost for technology companies. “Our electric power infrastructure is old, aging and not secure,” said Abe Yokell, co-founder of the energy and climate-focused venture capital firm Congruent Ventures. “From an infrastructure standpoint, transmission distribution really should be upgraded and has been underinvested over the years. And it is in direct alignment with providing renewable energy deployment across the U.S. and the electrification of everything.”

Rebar is laid before poring a cement slab for an apartment in San Francisco CA.

Image Credits: Steve Proehl (opens in a new window) / Getty Images

The future of construction tech

A skilled labor shortage is piling on top of the construction industry’s traditional challenges this year. The result is that tech adoption is getting a big push into the real world, Allison Xu of Bain Capital Ventures writes in a guest column for Extra Crunch this week. She maps out six main construction categories where tech startups are emerging, including project conception, design and engineering, pre-construction, construction execution, post construction and construction management. Here’s an excerpt from the article about that last item:

  • How it works today: Construction management and operations teams manage the end-to-end project, with functions such as document management, data and insights, accounting, financing, HR/payroll, etc.
  • Key challenges: The complexity of the job site translates to highly complex and burdensome paperwork associated with each project. Managing the process requires communication and alignment across many stakeholders.
  • How technology can address challenges: The nuances of the multistakeholder construction process merit value in a verticalized approach to managing the project. Construction management tools like ProcoreHyphen Solutions and IngeniousIO have created ways for contractors to coordinate and track the end-to-end process more seamlessly. Other players like Levelset have taken a construction-specific approach to functions like invoice management and payments.

Virtual HQs after the pandemic?

Pandemic-era work solutions like online team meeting spaces are heading towards a less certain, vaccine-based reality. Have we all gone remote-first enough that they will have a real market, still? Natasha Mascarenhas checks in with some of the top companies to see how it’s looking, here’s more:

With the goal of making remote work more spontaneous, there are dozens of new startups working to create virtual HQs for distributed teams. The three that have risen to the top include Branch, built by Gen Z gamers; Gather, created by engineers building a gamified Zoom; and Huddle, which is still in stealth.

The platforms are all racing to prove that the world is ready to be a part of virtual workspaces. By drawing on multiplayer gaming culture, the startups are using spatial technology, animations and productivity tools to create a metaverse dedicated to work.

The biggest challenge ahead? The startups need to convince venture capitalists and users alike that they’re more than Sims for Enterprise or an always-on Zoom call. The potential success could signal how the future of work will blend gaming and socialization for distributed teams.

Around TechCrunch

Head of the US Space Force, Gen. John W. ‘Jay’ Raymond, joins us at TechCrunch Sessions: Space

Amazon’s Project Kuiper chief David Limp is coming to TC Sessions: Space

Across the week

TechCrunch

Against all odds: The sheer force of immigrant startup founders

S16 Angel Fund launches a community of founders to invest in other founders

Pre-seed fintech firm Financial Venture Studio closes on debut fund to build on legacy of top investments

How esports can save colleges

Why are telehealth companies treating healthcare like the gig economy?

A court decision in favor of startup UpCodes may help shape open access to the law

Extra Crunch

Will Zoom Apps be the next hot startup platform?

Is the internet advertising economy about to implode?

Surging homegrown talent and VC spark Italy’s tech renaissance

Why some VCs prefer to work with first-time founders

3 growth tactics that helped us surpass Noom and Weight Watchers

A report card for the SEC’s new equity crowdfunding rules

#EquityPod

From Alex Wilhelm:

Hello and welcome back to Equity, TechCrunch’s venture capital-focused podcast (now on Twitter!), where we unpack the numbers behind the headlines.

This week wound up being incredibly busy. What else, with a week that included both the Airbnb and Affirm IPO filings, a host of mega-rounds for new unicorns, some fascinating smaller funding events and some new funds?

So we had a lot to get through, but with Chris and Danny and Natasha and your humble servant, we dove in headfirst:

What a week! Three episodes, some new records, and a very tired us after all the action. More on Monday!

Equity drops every Monday at 7:00 a.m. PDT and Thursday afternoon as fast as we can get it out, so subscribe to us on Apple PodcastsOvercastSpotify and all the casts.

Lyron Foster is a Hawaii based African American Musician, Author, Actor, Blogger, Filmmaker, Philanthropist and Multinational Serial Tech Entrepreneur.

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Shop-Ware raises cash as cars make a comeback

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Shop-Ware has been waiting for a year like 2020 since 2015.

The startup, which sells software to neighborhood automotive shops to digitize their operations, had struggled to capture capital from venture firms. Until recently, its sole major investor was aftermarket automotive giant Bosch.

For companies like Shop-Ware, the disruptive wake of COVID-19 has cleared a path to capital as mainstream investors have sought out startups with services and products needed in the pandemic era. Investors finally get Shop-Ware founder Carolyn Coquillette’s vision and business. Their endorsement: $15 million in funding through a Series A round led by Insight Partners.

“It’s a different level of validation in terms of this industry going through a transition and catching the eye of traditional investors,” Coquillette said.

Coquillette says Shop-Ware will use he funds to fuel growth across its operations, sales and marketing teams.

The fresh capital comes as Shop-Ware has tripled its customer base while also lowering churn, Coquillette said, although she would not disclose total revenue numbers or whether the company is profitable.

The idea of Shop-Ware began when Coquillette started her own San Francisco-based auto shop, Luscious Garage, in 2007. The goal from the get-go was to offer customers a peek into what happens in an auto shop. It meant more communications from the repair-person to the car-owner, and a software platform was the best way to do it. Eventually, the push for modernized software became less of an in-house project and more of a standalone company. By 2015, she had a product and an incorporated company.

Shop-Ware helps auto-repair shops streamline operations both inside and out of the shop. Auto-repair shops are able to use Shop-Ware to track employee hours, inventory ordering and management and integrate with third-party tools such as Quickbooks. Shop-Ware also helps the neighborhood auto-repair worker communicate and charge customers through text or a web-based interface.

The intricacies of car ownership are something that Coquillette thinks that the average consumer doesn’t understand, so she built an entire business around adding more transparency to the clunky process.

“There is no way that a normal person is going to appreciate what it takes to fix their car,” Coquillette said. “The car is built to distract you and hide its complication for you by design so that you agree to buy it.” In other words, she says, you’re buying a “magic carpet.”

It’s an easy pitch for the most part, the founder says.

“Everybody who owns the car has gone to a repair shop and had an unsavory experience,” she said. “It’s pretty obvious to be like ‘oh yeah, you can make that experience less unsavory.’”

The real roadblock for the startup is convincing a business to adopt technology to change a process that isn’t technically broken. COVID-19 has been the impetus for auto shops — some of which have been steadfast in their pen-and-paper approach —to turn to a digital platform to communicate and operate.

The sector of digitizing auto-repair processes has grown considerably since Shop-Ware first launched five years ago.

Concierge startups such as CarDash and Wrench have popped up over the past several years to give customers an easier way to request maintenance checks. The services consolidate auto repair shops under one, approachable umbrella, which Coquillette thinks is the wrong approach.

“I’m a real big believer that you need to enable those independent providers,” she said. “You have to basically let those special snowflakes be their own snowflakes.”

A closer competitor to Shop-Ware is Shopmonkey, which raised a $25 million Bessemer-led Series B in August. It is welcome competition, Coquillette remarks, because it has put an investment spotlight on the category.

“There’s been a wakeup call around autonomy and how we related to our cars,” she said.

Now it’s up to Shop-Ware to take that wakeup call and turn it into cash.

 

 

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Looking Glass’s next product is a holographic digital photo frame

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Looking Glass’s technology is extremely cool, but has, thus far, been prohibitively expensive, ranging from $600 for its 8.9-inch product to $6,000 for the 15-inch model — and an undisclosed sum for its 32-inch 8K display. Portrait might not be the most technically ambitious or versatile product the Brooklyn-based startup has produced, but it’s easily the most accessible.

At $349, it’s still not cheap (though it’s $199 if you get in early via Kickstarter), but it has to be one of the most affordable holographic displays on the market. Along with the pricing, the company is taking a more populist approach to functionality, as well, offering up what is essentially a very advanced digital photo frame. The system offers up to 100 different perspectives on a 3D image, which, unlike products like Sony’s new 3D display, can be viewed by multiple people at once.

Image Credits: Looking Glass

The system can also be run without being tethered to a computer. Its standalone mode relies on a built-in computer to deliver a 60 FPS holographic image. Those photos, meanwhile, can be captured with an iPhone and edited into a 3D image using the included HoloPlay Studio software. Holographic videos can also be captured with Azure Kinect and Intel RealSense cameras.

“It’s the first step toward holographic video calls,” the company notes, perhaps tipping its hand a bit about future plans.

“Ever since I was a little kid, I dreamed of the moment that I’d be able to have a holographic display of my own,” CEO Shawn Frayne says in the release. “I imagined what it would be like to send someone a holographic birthday message, or to say hello as a hologram to my great-great-great granddaughter. Looking Glass Portrait, the culmination of six years of work by our Brooklyn and Hong Kong based team, makes those dreams real for more people than ever before.”

The Portrait goes up on Kickstarter today, and will be available to early backers for $199.

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Jio Platforms backs SF-based AR gaming startup Krikey

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Jio Platforms, the biggest telecom operator in India and which has raised over $20 billion from Facebook, Google and other high-profile investors this year, is leading a financing round of a San Francisco-based startup that develops augmented-reality mobile games.

Jio has led the Series A fundraise of Krikey, founded by sisters Jhanvi and Ketaki Shriram, the Indian firm said on Wednesday. They did not disclose the size of Krikey’s Series A round, but Jio said Krikey has raised $22 million to date.

Krikey has previously not disclosed any financing rounds, according to their listings on Crunchbase, CBInsights, and Tracxn.

As part of the announcement, Krikey has launched YAATRA, a new AR game that invites users to step in an action-adventure story to defeat a monster army. “Using weapons such as the bow and arrow, chakra, lightning and fire bolts, players can battle through different levels of combat and puzzle games,” Krikey said.

Jio subscribers in India will get exclusive access to a range of features in Krikey, available on Android and iOS, including a 3D avatar, and entry to some game levels and weapons.

“Our vision with Krikey is to bring together inspiration and reality in an immersive way. With augmented reality, we are able to bring fantasy worlds into your home, straight through the window of your mobile phone,” said Jhanvi and Ketaki Shriram in a joint statement.

In a statement, Akash Ambani, Director of Jio, said, “Krikey will inspire a generation of Indians to embrace Augmented Reality. Our vision is to bring the best experiences from across the world to India and the introduction of Yaatra is a step in that direction. Augmented Reality gaming takes the user into a world of its own, and we invite every Jio and non-Jio user to experience AR through Yaatra.”

We have reached out to Jio and Krikey for more details.

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