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Florida-based logistics provider ShipMonk raises $290 million on the back of rising eCommerce demand – TechCrunch

Jan Bednar started ShipMonk with $70,000 in winnings from a string of student business plan competitions and launched the business that just closed on $290 million in new funding from a small warehouse with no air conditioning in the middle of Florida. While Bednar’s new offices are still inside the warehouse his company operates, they […]…

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Jan Bednar started ShipMonk with $70,000 in winnings from a string of student business plan competitions and launched the business that just closed on $290 million in new funding from a small warehouse with no air conditioning in the middle of Florida.

While Bednar’s new offices are still inside the warehouse his company operates, they now have air conditioning… and a $290 million financing round from Summit Partners to grow its business.

The Ft. Lauderdale, Fla.-based ShipMonk provides a slew of shipping and logistics services for small to medium-sized eCommerce businesses and right now — given the continuing COVID-19 pandemic — business is good.

“We help SMBs and mid-market direct to consumer companies manage their supply chains. Help get their products from suppliers to facilities and connect with all of their sales channels including B2B … order management, transportation management, reverse logistics,” said Bednar.

The company’s largest customers can book anywhere from $150 million to $250 million in revenue, but most of ShipMonk’s customers are actually small businesses pulling in between $1 million and $10 million on average.

It’s for these businesses that ShipMonk will fill its warehouses in Pennsylvania, California and Florida with 60,000 stock keeping units — managing around 50 different items for each customer it serves.

Bednar said ShipMonk would use the new cash to continue to upgrade its automation services and increase its staffing while also looking to expand internationally.

Profitable from the outset, ShipMonk just came off one of its best years, taking in upwards of $140 million in revenue.

Bednar began the business alone, but quickly brought on co-founders Kevin Seitz, who handles marketing for the business, and Bosch Jares, a fellow native of the Czech Republic (like Bednar) who serves as the company’s chief technology officer.

The story of how Jares joined the business is indicative of the type of hustle that’s allowed Bednar to grow a booming tech and logistics business from the Ft. Lauderdale beaches.

It was the Florida weather that sold Jares, a college student from one of the Czech Republic’s top technical institutions, on the move to ShipMonk. Bednar had posted an internship opportunity to work (unpaid, but offering room and board) at his company on a college job board in the middle of January. The applications came pouring in, but it was Jares, a programmer who had been working with computers since age 14 who took the slot.

The rest… is ShipMonk history. Jares built the bulk of the backend for the company’s initial services spending nearly 20 hours a day coding.

The thriftiness and hard work has won ShipMonk a booming business that has grown from 15,000 square feet of warehousing space into nearly 1 million square feet of storage space and a logistics service that spans the U.S.

Timing for the new round couldn’t be better, as National Retail Federation estimates are banking on a 20% bump in new online sales — which could reach $202 billion this year.

Black Friday alone raked in $9 billion in online purchases, according to data from Adobe Analytics provided by the company, and consumer spending is only going to continue to move online as the pandemic continues to threaten the health and safety of American consumers.

ShipMonk’s technology integrates with shopping cart and marketplace platforms like Shopify to import orders across sales channels, which are then processed at the company’s warehouse locations. Customers can save up to 50% on their operational costs, according to the company.

“We believe ShipMonk truly demonstrates the power of a bootstrapped, durable growth mindset. Jan identified a significant gap in the market and, together with the ShipMonk team, has scaled the business in a deliberate and capital efficient manner to address that need. The results have been impressive,” said Christopher Dean, a Managing Director at Summit Partners who is taking a seat on the company’s board.

It’s for these businesses that ShipMonk will fill its warehouses in Pennsylvania, California and Florida with 60,000 stock keeping units — managing around 50 different items for each customer it serves.

Source: https://techcrunch.com/2020/12/02/florida-based-logistics-provider-shipmonk-raises-290-million-on-the-back-of-rising-ecommerce-demand/

florida-based-logistics-provider-shipmonk-raises-$290-million-on-the-back-of-rising-ecommerce-demand-–-techcrunch

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Cruise strikes deal to launch robotaxi service in Dubai – TechCrunch

Cruise has expanded its robotaxi ambitions beyond San Francisco. The autonomous vehicle subsidiary of GM that also has backing from SoftBank Vision Fund, Microsoft and Honda, has struck a deal to launch a robotaxi service in Dubai in 2023. The robotaxi service in Dubai will use the Cruise Origin, the all-electric shuttle-like vehicle that has […]

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Cruise has expanded its robotaxi ambitions beyond San Francisco. The autonomous vehicle subsidiary of GM that also has backing from SoftBank Vision Fund, Microsoft and Honda, has struck a deal to launch a robotaxi service in Dubai in 2023.

The robotaxi service in Dubai will use the Cruise Origin, the all-electric shuttle-like vehicle that has no steering wheel or pedals and is designed to travel at highway speeds. The Origin, which was unveiled in January 2020 will be manufactured by GM.

Cruise will establish a new local Dubai-based company which will be responsible for the deployment, operation and maintenance of the fleet.

The service will start with a limited number of vehicles with plans to scale up to 4,000 vehicles by 2030 as part of Dubai’s self-driving transport strategy, according to Mattar Mohammed Al Tayer, the director-general and chairman of the board of the RTA. The robotaxis — and eventually the service — will be introduced gradually and limited to specific areas before expanding to other parts of the city.

Dubai’s Crown Prince Sheikh Hamdan bin Mohammed said the agreement with Cruise is a “major step towards realizing Dubai’s Self-Driving Transport Strategy aimed at converting 25% of total trips in Dubai into self-driving transport trips across different modes of transport by 2030.”

Importantly, Cruise has a lock on Dubai for at least a few years. Under the agreement, Cruise is the “exclusive provider” for self-driving taxis and ride-hailing services in Dubai until 2029. Al Tayer said the selection of Cruise was not taken lightly and involved a comprehensive, multi-year process.

Source: https://techcrunch.com/2021/04/12/cruise-strikes-deal-to-launch-robotaxi-service-in-dubai/

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China gets serious about antitrust, fines Alibaba $2.75B – TechCrunch

Chinese regulators have hit Alibaba with a record fine of 18 billion yuan (about $2.75 billion) for violating anti-monopoly rules as the country seeks to rein in the power of its largest internet conglomerates. In November, China proposed sweeping antitrust regulations targeting its interent economy. In late December, the State Administration for Market Regulation said […]

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Chinese regulators have hit Alibaba with a record fine of 18 billion yuan (about $2.75 billion) for violating anti-monopoly rules as the country seeks to rein in the power of its largest internet conglomerates.

In November, China proposed sweeping antitrust regulations targeting its interent economy. In late December, the State Administration for Market Regulation said it had launched an antitrust probe into Alibaba, weeks after the authorities called off the initial public offering of Ant Group, the financial affiliate of Alibaba.

SAMR, the country’s top market regulator, said on Saturday it had determined that Alibaba had been “abusing market dominance” since 2015 by forcing its Chinese merchants to sell exclusively on one e-commerce platform instead of letting them choose freely among different services, such as Pinduoduo and JD.com. Vendors are often pressured to side with Alibaba to take advantage of its enormous user base.

Since late 2020, a clutch of internet giants including Tencent and Alibaba have been hit with various fines for violating anti-competition practices, for instance, failing to clear past acquisitions with regulators. The meager sums of these penalties were symbolic at best compared to the benefits the tech firms reap from their market concentration. No companies have been told to break up their empires and users still have to hop between different super-apps that block each other off.

In recent weeks, however, there are signs that China’s antitrust authorities are getting more serious. The latest fine on Alibaba is equivalent to 4% of the company’s revenue generated in the calendar year of 2019 in China.

“Today, we received the Administrative Penalty Decision issued by the State Administration for Market Regulation of the People’s Republic of China,” Alibaba said in a statement. “We accept the penalty with sincerity and will ensure our compliance with determination. To serve our responsibility to society, we will operate in accordance with the law with utmost diligence, continue to strengthen our compliance systems and build on growth through innovation.”

The thick walls that tech companies build against each other are starting to break down, too. Alibaba has submitted an application to have its shopping deals app run on WeChat’s mini program platform, Wang Hai, an Alibaba executive, recently confirmed.

For years, Alibaba services have been absent from Tencent’s sprawling lite app ecosystem, which now features millions of third-party services. Vice versa, WeChat is notably missing from Alibaba’s online marketplaces as a payment method. If approved, the WeChat-powered Alibaba mini app would break with precedent of the pair’s long stand-off.

In recent weeks, however, there are signs that China’s antitrust authorities are getting more serious. The latest fine on Alibaba is equivalent to 4% of the company’s revenue generated in the calendar year of 2019 in China.

Source: https://techcrunch.com/2021/04/09/china-gets-serious-about-antitrust-fines-alibaba-2-75b/

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After its first $54M fund, Algebra Ventures launches $90M fund for startups in Egypt – TechCrunch

The venture capital scene in the North African tech ecosystem will be absolutely buzzing right now with the announcement of two large VC funds in the space of two days. Today, Algebra Ventures, an Egyptian VC firm, announced that it has launched its $90 million second fund. Four years ago, Algebra Ventures closed its first […]

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The venture capital scene in the North African tech ecosystem will be absolutely buzzing right now with the announcement of two large VC funds in the space of two days. Today, Algebra Ventures, an Egyptian VC firm, announced that it has launched its $90 million second fund.

Four years ago, Algebra Ventures closed its first fund of $54 million, and with this announcement, the firm hopes to have raised a total of $144 million when the second fund closes (with first close by Q3 2021). If achieved, Algebra will most likely have the largest indigenous fund from North Africa and arguably in Africa.

According to the managing partners — Tarek Assaad and Karim Hussein, the first fund was an Egyptian-focused fund. Still, the firm made some selective investments in a few companies outside the country. The second fund will be similar — Egypt first, Egypt focused, but allocating investments in East and West Africa, North Africa and the Middle East.

Assaad and Hussein launched the firm in 2016 as one of Egypt’s first independent venture capital funds. It wasn’t easy to start one at the time, and it took the partners two years to close the first fund.

“Raising a venture capital fund in Egypt in 2016, in all honesty, was a pain. There was no venture capital to speak of back then,” Assaad told TechCrunch. “The high-flying startups back then were raising between $1 million and $2 million. We decided to take the bull by the horn and raise from very established LPs.”

These LPs include Cisco, the European Commission, Egyptian-American Enterprise Fund (EAEF), European Bank for Reconstruction and Development (EBRD), International Finance Corporation (IFC) and private family offices. From the first fund, Algebra backed 21 startups in Egypt and MENA, and according to the firm, six of its most established companies are valued at over $350 million and collectively generate more than $150 million in annual revenue. It hopes to back 31 startups from the second fund.

Algebra says it’s sector-agnostic but has a focus on fintech, logistics, health tech and agritech. Although the firm has invested in startups in seed and Series B stages, Algebra is known to be an investor in startups looking to raise Series A investments.

Another appealing proposition from Algebra lies in the fact that it owns an in-house team focused on talent acquisition — in operations, marketing, finance, engineering, etc., for portfolio companies.

The firm’s ticket size remains unchanged from the first fund and will continue to cut checks ranging from $500,000 to $2 million. However, some aspects as to how the firm handles operations might change according to the partners.

“One of the lessons learned in our first fund is that we see that there are more interesting opportunities and great entrepreneurs in the seed stage. And given that we’re more on the ground in Egypt, sometimes we wait for them to mature to Series A. But going forward, we might need to build relationships with those we find exceptional at the seed level and also expand our participation on the Series B level, too,” Hussein said on how the firm will act going forward.

Algebra Ventures

Karim Hussein (Managing partner, Algebra Ventures)

Hussein adds that the company will also be doubling down on its talent acquisition network. Typically, Algebra helps portfolio companies hire C-level executives, and while it plans to continue doing so, the firm might adopt a startup studio model — pairing some professionals to start a company that eventually gets Algebra’s backing and support.

The reason behind this stems from the next set of companies Algebra will be looking to invest in. According to Hussein, the partners at Algebra have studied successful businesses in other emerging markets for some time and want to identify parallels in North Africa where the firm can invest.

“In cases where the firm can’t find those opportunities, we may spur some of those in the network to start building those businesses and capture those opportunities,” he remarked.

Before Algebra, Hussein has been involved with building some successful tech companies in the U.S. Primarily an engineer after bagging both bachelors and doctorate degrees from Carnegie Mellon University and MIT, respectively, he ventured into the world of startup investing and crazy valuations after working for a consulting company in the dot-com era.

He would go on to start Riskclick, a software company known for its commercial insurance applications. The founders sold the company to Skywire before Oracle acquired the company to become part of its suite of insurance services. After some time at WebMD, Hussein returned to Egypt and began mentoring startups as an angel investor. Alongside other angel investors, he started Cairo Angels, an angel investor network in Egypt, in 2013.

“There was a massive gap in the market. We were putting in a bit of small angel money to these businesses but there were no VCs to take them to the next level. So I met up with Tarek and the rest is Algebra,” he said.

Assaad is also an engineer. He obtained his bachelors in Egypt before switching careers by going to Stanford Graduate School of Business. He continued on that path working for some Bay Area companies before his return to Egypt. On his return, he became a managing partner at Ideavelopers, a VC firm operating a $50 million fund since 2009. The firm has had a couple of good success stories, the most notable being fintech startup Fawry. Fawry is now a publicly traded billion-dollar company and Assaad was responsible for the investment which realized a $100 million exit for Ideavelopers in 2015.

Algebra Ventures

Tarek Assaad (Managing partner, Algebra Ventures)

With Algebra, both partners are pioneering local investments in the region. Some of its portfolio companies are the most well-known companies on the continent — health tech startup Vezeeta; social commerce platform Brimore; logistics startup Trella; ride-hailing and super app Halan; food discovery and ordering platform Elmenus; fintech startup, Khazna; and others.

The firm’s latest raise and $144 million capital amount is one of the largest funds dedicated to African startups. Other large Africa-focused funds include the $71 million fund recently closed by another Egyptian firm, Sawari Ventures; Partech’s $143 million fund; Novastar Ventures’ $200 million fund; and the $71 million Tide Africa Fund by TLcom Capital.

These funds have been very pivotal to the growth of the African tech ecosystem in terms of funding. Last year, African startups raised almost $1.5 billion from both local and international investors, according to varying reports. This number was just half a billion dollars six years ago.

However, regardless of the period — 2015 or 2021 — African VC investments have always been largely dominated by foreign investors. But VC firms like Algebra Ventures are showing that local investors can cumulatively raise nine-figure funds or attempt to do so. Obviously, this will provide more startups with more funds and pave the way for indigenous and local VCs to at least increase their participation to nearly equal levels when compared to international investors.

“Raising a venture capital fund in Egypt in 2016, in all honesty, was a pain. There was no venture capital to speak of back then,” Assaad told TechCrunch. “The high-flying startups back then were raising between $1 million and $2 million. We decided to take the bull by the horn and raise from very established LPs.”

Source: https://techcrunch.com/2021/04/06/after-its-first-54m-fund-algebra-ventures-launches-another-90m-fund-for-startups-in-egypt/

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