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Getaround tops up $25M debt financing to its $140M Series E – TechCrunch

Silicon Valley peer-to-peer car rental startup Getaround has secured a $25 million loan from Horizon Technology Finance Corporation. The financing announcement comes one month after Getaround raised $140 million from investors, including SoftBank Vision Fund, Menlo Ventures, Reid Hoffman and Mark Pincus’ Reinvent Capital. Getaround’s raise signals that the company is looking for new ways […]…

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Silicon Valley peer-to-peer car rental startup Getaround has secured a $25 million loan from Horizon Technology Finance Corporation. The financing announcement comes one month after Getaround raised $140 million from investors, including SoftBank Vision Fund, Menlo Ventures, Reid Hoffman and Mark Pincus’ Reinvent Capital.

Getaround’s raise signals that the company is looking for new ways to secure cash without further diluting executives or investors.

A Getaround spokesperson said “Horizon presented an opportunity that provides us with additional capital to accelerate our plans in the same way as our recent Series E fundraise.”

Dan Devorsetz, Horizon’s chief investment officer, told TechCrunch that venture debt has been a part of Getaround’s financing strategy for 2020.

“It diversifies funding sources and lowers their overall cost of capital, while also mitigating the dilution impact of incremental equity,” he said. While he wouldn’t clarify on where the debt capital was going, he said that the debt is allowing Getaround to accomplish both “working capital needs and long term strategic growth initiatives.”

Getaround, like many travel-related startups, struggled in the beginning of the pandemic as governments issued stay-at-home orders in an effort to keep the disease caused by coronavirus from spreading. Bookings dropped 75% in March, forcing Getaround to layoff 100 employees. The company also applied and received approval for a Paycheck Protection Program loan to help retain workers. Getaround previously told said TechCrunch that the program “helped reduce the otherwise severe impact on the health of our organization,” due to lockdowns and coronavirus restrictions.

Demand returned in May as travelers turned to cars instead of flights for short-distance trips. Getaround CEO Sam Zaid last told TechCrunch that worldwide revenue has more than doubled from pre-COVID baselines.

By July, Getaround said it had rehired all of its furloughed employees.

There have been scattered signs of a comeback throughout the mobility industry. This week, Uber had its highest close since IPO, and Lyft saw its ride revenues recover enough to give investors some calm.

The upshot: the green shoots have sprouted. But will another wave of COVID-19 nip those buds before they can establish roots?

Getaround’s decision to pursue debt financing so soon after raising a six-figure venture capital round could signal the company’s anticipation of another lockdown, and subsequent drop in bookings. Unlike other mobility companies, Getaround doesn’t own the cars, trucks and SUVs on its rental platform, a benefit that could help the company weather a short downturn.

Source: https://techcrunch.com/2020/11/13/getaround-tops-up-25m-debt-financing-to-its-140m-series-e/

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The DL on CockroachDB – TechCrunch

As college students at Berkeley, Spencer Kimball and Peter Mattis created a successful open-source graphics program, GIMP, which got the attention of Google. The duo ultimately joined Google, and even personally got kudos from Sergey Brin and Larry Page. Kimball and Mattis quickly rose to prominence within the company, and then chose to leave it […]

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As college students at Berkeley, Spencer Kimball and Peter Mattis created a successful open-source graphics program, GIMP, which got the attention of Google. The duo ultimately joined Google, and even personally got kudos from Sergey Brin and Larry Page. Kimball and Mattis quickly rose to prominence within the company, and then chose to leave it all behind to start what would eventually become CockroachDB. Years later, Cockroach Labs has over 250 employees and has received investments from the likes of Benchmark, GV, Index Ventures and Redpoint totaling more than $350 million, according to Crunchbase. The company is now on route to what some think is an “inevitable IPO.”

The story of CockroachDB, from its origin to its future, was told in a four-part series in our latest EC-1:

I’m biased, but it’s a must-read that gets into tensions that any startup founder can relate to: from navigating heavyweight competitors, to growing past free tiers, to maintaining your users’ attention. It’s the eighth EC-1 we’ve published to date, which my colleague and TC Managing Editor Danny Crichton estimates puts us at 90,000 words all about startup beginnings, product development, marketing and more.

In the rest of this newsletter, we’ll get into that WeWork book, bite-sized entrepreneurship and some SPACs. Follow me on Twitter @nmasc_. Or don’t, it’s your choice!

The Cult of We

Adam Neumann (WeWork) at TechCrunch Disrupt NY 2017. Image Credits: TechCrunch

This week on Equity, Alex and I interviewed Eliot Brown, who wrote “The Cult of We” along with Maureen Farrell. Our conversation riffed on some of the book’s eyebrow-raising details and anecdotes, but mainly focused on what WeWork’s rise and fall did to the state of startups and tech journalism more broadly.

Here’s what to know: Not much has changed. Jokes aside, Brown shared his notes on how the current boom in startup financings has a worrisome air of frenzy and fluff. He also chatted about how sometimes the most illuminating question can be a simple one: What makes you a tech company?

More money, more problems?

TikTok what again?

tiktok glitch

Image Credits: TechCrunch

TikTok kept popping up throughout the week. Index Ventures, for example, noted how the firm’s TikTok account has amassed an impressive following and is a channel to talk to the younger generations. Nothing like some short-form videos to stay hip and relatable while raising $3 billion in one go.

Here’s what to know: While TikTok has certainly changed the world, I worry when I see the allure of bite-sized content get edtech’d. Bite-sized content can be a nifty way to spread content, but it isn’t one-size-fits-all. Duolingo, which priced its IPO this week, still struggles to show meaningful learning outcomes and optimizes more for motivation than comprehension. This tension is a key note for companies like Numerade and Sololearn, which both raised this week, to not overly TikTok learning materials.

Other edtech content for your eyes:

So, SPACs

hands signing check 1

Image Credits: Bryce Durbin / TechCrunch

It’s been awhile since I’ve used that acronym in Startups Weekly. That said, special purpose acquisition vehicles are still very much a thing and are still very much worth paying attention to.

Here’s what to know: Lucid Motors’ SPAC merger was just approved. Reporter Aria Alamalhodaei writes that the move came after executives extended the deadline to vote to merge by one day after not enough investors showed up. “The issue is unusual but could become more common as more companies eschew the traditional IPO path to public markets and instead merge with SPACs,” she writes.

Also special:

Around TC

If you haven’t already, please fill out TC’s ongoing growth marketing survey. We’re using these recommendations of top-tier growth marketers around the world to shape our editorial coverage and to build out TechCrunch Experts.

Across the weekSeen on TechCrunch

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  • Technical design “How engineers fought the CAP theorem in the global war on latency” (2,400 words/10 minutes)
  • Source: https://techcrunch.com/2021/07/24/an-inevitable-ipo-full-of-cockroaches-and-developers/

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    Twitter appoints resident grievance officer in India to comply with new internet rules – TechCrunch

    Twitter has appointed a resident grievance officer in India days after the American social media firm said to have lost the liability protection on user-generated content in the South Asian nation over non-compliance with local IT rules. On Sunday, Twitter identified Vinay Prakash as its new resident grievance officer and shared a way to contact […]

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    Twitter has appointed a resident grievance officer in India days after the American social media firm said to have lost the liability protection on user-generated content in the South Asian nation over non-compliance with local IT rules.

    On Sunday, Twitter identified Vinay Prakash as its new resident grievance officer and shared a way to contact him as required by India’s new IT rules, which was unveiled in February this year and went into effect in late May. Twitter has also published a compliance report, another requirement listed in the new rules.

    Earlier this week, the Indian government had told a local court that Twitter had lost the liability protection on user generated content in the country as it had failed to appoint compliance, grievance, and a so-called nodal contact officials to address on-ground concerns.

    Other internet giants including Facebook, Google, and Telegram have already appointed these local compliance officers in India.

    Internet services enjoy what is broadly referred to as “safe harbor” protection that say that tech platforms won’t be held liable for the things their users post or share online. If you insult someone on Twitter, for instance, the company may be asked to take down your post (if the person you have insulted has approached the court and a takedown order has been issued) but it likely won’t be held legally responsible for what you said or did.

    Without the protection, Twitter — which according to mobile insight firm App Annie, has over 100 million users in India — is on paper responsible for everything those users say on its platform. Indian police have already filed at least five cases against the company or its officials in the country over a range of issues.

    The new development should help assuage the tension between Twitter and the Indian government. A special squad of Delhi police made a surprise visit to two of Twitter’s offices in late May in what many perceived as an intimidation tactic. Twitter said at the time that it was “concerned by recent events regarding our employees in India and the potential threat to freedom of expression for the people we serve” and requested the Indian government to grant it three additional months to comply with the new IT rules.

    Earlier this week, Twitter told an Indian court that it was working to “fully comply” with the new rules.

    More countries are formulating similar requirements for tech giants in their nations. Russia President Vladimir Putin signed a law that mandates foreign social media giants to open offices in Russia. Any social firm with a daily user base of 500,000 people or more is required to comply with the new law.

    Internet services enjoy what is broadly referred to as “safe harbor” protection that say that tech platforms won’t be held liable for the things their users post or share online. If you insult someone on Twitter, for instance, the company may be asked to take down your post (if the person you have insulted has approached the court and a takedown order has been issued) but it likely won’t be held legally responsible for what you said or did.

    Source: https://techcrunch.com/2021/07/10/twitter-appoints-resident-grievance-officer-in-india-to-comply-with-new-internet-rules/

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    Don’t miss these highlights today, day one of TC Early Stage 2021: Marketing and Fundraising – TechCrunch

    Rise, shine and get your startup on, early founders. It’s Day One of TC Early Stage 2021: Marketing and Fundraising! Get ready to be schooled — in the best way possible — on essential skills, tips and tactics every founder needs to build a successful startup. And, like the sign says, the emphasis this time […]

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    Rise, shine and get your startup on, early founders. It’s Day One of TC Early Stage 2021: Marketing and Fundraising! Get ready to be schooled — in the best way possible — on essential skills, tips and tactics every founder needs to build a successful startup. And, like the sign says, the emphasis this time around is on marketing and raising funds — with plenty of experienced speakers to guide you.

    Pro (crastination) Tip: It’s not too late to attend. Buy a ticket at the virtual door.

    We’re about to highlight a few of the info-packed presentations on tap today — just to wet your whistle. But first, here’s how Ashley Barrington, founder of MarketPearl, described Early Stage 2020.

    They offered a great variety of sessions and speakers — top investors, founders and credible subject-matter experts — who gave unique insights based on personal experience. You get great mentorship through attending the Early Stage sessions. It’s like a mini masterclass in entrepreneurship.

    Be sure to check the event agenda to scope out what interests you the most. Remember, your pass includes video on demand. If you need to get a bit of work done or find that two sessions you want to attend conflict, relax. You can catch everything you missed later at your leisure.

    Nailing Your Pitch: Companies aren’t started at the moment of fund raising begins but they can often end there. Nailing your pitch is integral to success. Hear from Adina Tecklu, principal at Khosla Ventures, on how to tell your story and leave investors wanting more.

    How to Capitalize on Being Coached: Ted Wang, partner at Cowboy Ventures, comes from the legal world where he was a partner at Fenwick. In short, he’s seen his fair share of startup success and failure. At Early Stage, Wang will explain the value of coaching for startup founders, including the different types of coaches one might utilize, how to choose between them, and how to get the most out of a good coach.

    What’s Your Story? You can have a compelling product, but it’s a compelling story that puts your company into motion. In this session, Doug Landis, former Chief Storyteller and GTM leader from Box, Salesforce and Google, will share the core storytelling mechanics to help you nail your origin, product and customer stories that will get your company in motion.

    Deep Tech — How to Raise Early in a Notoriously Tough Category: The greatest evolutions in our history have not come from small technological steps, but giant leaps. Frontier tech is the future, but it’s not particularly accessible to average folks. Hear from IndieBio partner Pae Wu and HAX partner Garrett Winther on how to fundraise for your deep tech startup.

    School is now in session! It’s not too late to get access to the networking, the community and learning more about the best ways to drive your business forward. Get your ticket for instant access now!

    Be sure to check the event agenda to scope out what interests you the most. Remember, your pass includes video on demand. If you need to get a bit of work done or find that two sessions you want to attend conflict, relax. You can catch everything you missed later at your leisure.

    Source: https://techcrunch.com/2021/07/08/dont-miss-these-highlights-today-day-one-of-tc-early-stage-2021-marketing-and-fundraising/

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