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Rewarding Savers: HMBradley Raises $18.25M To Bank On Consumer Saving Habits

The young company aims to offer higher annual percentage rates as customers save more….

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As consumers look for ways to make their money earn more money, digital banking platform HMBradley is developing programs to reward savers.

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The Santa Monica, California-based startup closed on $18.25 million in Series A funding to build on its credit program and savings offerings. Acrew Capital led the round, which gives HMBradley approximately $22 million in venture-backed funding since the company was started in 2019.

“Everyone is paid the same interest rate,” Zach Bruhnke, co-founder and CEO of HMBradley, told Crunchbase News. “When you talk to a typical bank CEO, they want long-term, stable deposits that are growing. Consumers want to make more money for their money.”

The young company aims to align those incentives by offering higher annual percentage rates as customers save more. Not everyone will be in the top tier, Bruhnke said, but he believes this approach will drive more adoption.

For example, customers won’t earn dividends if they don’t utilize direct deposit, but people who save up to 20 percent of their earnings will yield up to 3 percent in interest.

“Tiers vary–the average is 2 percent APR–but it is really about aligning consumer behavior with the percentage of income they are saving,” he added.

Offering rewards is one of the up-and-coming attraction and retention approaches fintech companies are utilizing. A Crunchbase data search for fintech companies that described offering rewards to consumers yielded a little over 118 venture-backed companies that raised money in the past five years.

Companies raising more than $1 million in the past month include:

  • Fetch Rewards, which raised an $80 million venture round;
  • Bumped, raising a $10.4 million Series A; and
  • Paceline, which brought in a $5 million seed round.
  • Meanwhile, HMBradley unveiled its savings program in April–through an arrangement with Hatch Bank–and has received more than $90 million in deposits. Its deposits doubled month-over-month in October, Bruhnke said.

    In July, the company introduced a credit card and its one-click credit application. The card offers 3 percent cash back for purchases in their highest spending category, 2 percent for the next highest category, and 1 percent for all additional charges. Consumers who pair the card with a deposit account earn more.

    “One-click credit is going to be the future because consumers will know where they stand and what they are good for in an easy manner,” Bruhnke added. “There is a renewed focus on how to drive deeper in the mindset of customers. Engagement is double what we have seen, and if it continues to grow, we think consumers will expect credit in a different way.”

    Vishal Lugani, founding partner at Acrew Capital, supported the Acorns portfolio while he was with Greycroft and said in an interview that he is impressed with how fast the HMBradley team was able to roll out a credit program. It was a testament to the team’s early vision of setting everything up on the back end before launching.

    “The engagement I saw with early users of the company was exceptional, measured by the percentage of people sending their paycheck for direct deposit, opting in with the one-click credit, and the staggering percentage of users engaging with their savings goals,” Lugani said. “While other credit card companies’ rewards programs are struggling, HMBradley is rewarding you on what you spend regardless of where.”

    Illustration: Li-Anne Dias

    Source: https://news.crunchbase.com/news/rewarding-savers-hmbradley-raises-18-25m-to-bank-on-consumer-saving-habits/

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    Here’s Who’s Gone Public in 2021 (So Far)

    Another year, another list.

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    Another year, another list.

    In past years, we’ve mostly covered venture-backed tech and tech-ish IPOs in this perennial list of startups going public. Occasionally, a direct listing here and there would make the list, but the vast majority of companies going public were doing so through a traditional IPO. This year looks like it will be a bit different, with the increasing popularity of SPACs and new rule changes making direct listings more favorable, now that companies can raise capital through that route.

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    So, we’ve adapted our ever-updated Here’s Who’s Gone Public list to fit more with the times, and are including both traditional IPOs and other methods of going public. So far this year, that means IPOs and SPACs.

    While SPACs are going public at a more frequent pace than traditional IPO companies, we’ve included only the ones that have completed a merger with a target company and begun trading as a combined company.

    This list will be updated regularly to keep up with the robust IPO and SPAC pipeline coming up this year, so be sure to check back.

    Most recently updated: April 8, 2021

    IPOsAffirm

    • IPO date: Jan. 13, 2021
    • IPO price: $49
    • IPO valuation: $11.9 billion
    • Initial post-IPO arc: Positive

    In the first venture-backed tech-ish IPO of the year, Affirm saw its stock price jump 100 percent on its first day of trading before closing out at $97.24. Affirm is a big player in the increasingly-popular “buy now, pay later space,” which includes companies like AfterPay and Klarna. Since it went public in mid-January, the company’s stock has moved up and down, but overall its trajectory has been positive. Affirm’s stock closed at $105.55 on Feb. 18.

    Poshmark

    • IPO date: Jan. 14, 2021
    • IPO price: $42
    • IPO valuation: $3 billion
    • Initial post-IPO arc: Negative

    Poshmark’s stock price doubled pretty much right out of the gate, and ended up closing out its first day of trading up 140 percent. The company, which operates a marketplace for new and second-hand clothing and accessories, reached a valuation of $3 billion with its IPO, one of the first of this year. But since Poshmark’s public market debut, its stock has fallen quite a bit. The company’s stock closed at $68.39 on Feb. 18.

    Playtika

    • IPO date: Jan. 15, 2021
    • IPO price: $27
    • IPO valuation: $11 billion
    • Initial post-IPO arc: Positive

    Gaming is all the rage as people look to stay entertained at home during the COVID-19 pandemic. The market response to Playtika reflects that. Playtika’s stock price since its mid-January debut has been mostly positive. The company’s stock closed at $32.56 on Feb. 18, still above its first day of trading close of $31.62.

    Qualtrics

    • IPO date: Jan. 28, 2021
    • IPO price: $30
    • IPO valuation: $15 billion
    • Initial post-IPO arc: Positive

    Qualtrics’ IPO was significant for a couple different reasons. It wasn’t a traditional venture-backed tech company going public, but one that had already been acquired. After SAP acquired the company in 2018 before Qualtrics’ planned IPO, SAP ended up spinning it out in 2021. The IPO was also significant because it ended up being the largest IPO of a Utah-based company. Qualtrics’ public debut valued the company at $15 billion, and its stock price arc has been positive since. Qualtrics’ stock closed at $44.63 on Feb.18.

    Bumble

    • IPO date: Feb. 11, 2021
    • IPO price: $43
    • IPO valuation: $8.2 billion
    • Initial post-IPO arc: Positive

    Bumble’s IPO made founder and CEO Whitney Wolfe Herd a billionaire and the youngest woman to take a company public. It was also a big deal for Texas’ tech scene, as the dating app is a homegrown Austin company. The company raised $2.15 billion through its IPO and its stock closed 64 percent above its IPO price on its first day of trading. Overall, its post-IPO arc since then has been positive, and its stock closed at $74 on Feb. 18.

    Oscar Health

    • IPO date: March 3, 2021
    • IPO price: $39
    • IPO valuation: $7.9 billion
    • Initial post-IPO arc: Negative

    As of this writing, Oscar Health has been a public company for less than three days. So, its negative post-IPO arc should be taken with a grain of salt — especially because the market in general dipped at the end of its first week of trading. That said, Oscar’s public market debut wasn’t like many of the venture-backed IPOs we’ve seen recently where the stock surges right out of the gate. The company initially set a price range of between $32 and $34 before increasing it to between $36 and $38, and pricing at $39. The company closed its first day of trading at $34.80, and its stock closed at $31 on Friday, March 5.

    Coupang

    • IPO date: March 11, 2021
    • IPO price: $35
    • IPO valuation: $60 billion
    • Initial post-IPO arc: Negative.

    While Coupang’s stock popped around 40 percent on its first day of trading, it has trended mostly down since the company went public nearly a month ago. When the company went public in March, it made Coupang the largest IPO of the year so far, according to CNBC. The South Korean e-commerce company’s stock closed at $45.58 on Thursday, April 8.

    DigitalOcean

    • IPO date: March 23, 2021
    • IPO price: $47
    • IPO valuation: $5 billion
    • Initial post-IPO arc: Negative.

    DigitalOcean didn’t exactly start its time trading on the public markets on a high note. The company opened and closed its first day of trading below its IPO price, and its stock has pretty much gone down since then. Since DigitalOcean has been a public company, its stock hasn’t reached the IPO price of $47 that the company had set. The company closed its first day of trading at $42.50, and closed at $40.25 on Thursday, April 8.

    VIZIO

    • IPO date: March 25, 2021
    • IPO price: $21
    • IPO valuation: $3.9 billion
    • Initial post-IPO arc: Positive.

    VIZIO finally made it public this year after filing for an IPO for a second time (it first filed in 2015). The company had a less-than-stellar debut when it began trading at the end of March, with its stock opening nearly 17 percent below its IPO price of $21. Since then, the company’s stock price has increased, reaching a high of $24.72 on March 30. VIZIO’s stock price has tapered off a bit since then, closing at $21.95 on Thursday, April 8.

    ThredUp

    • IPO date: March 26, 2021
    • IPO price: $14
    • IPO valuation: $1.3 billion
    • Initial post-IPO arc: Negative.

    While ThredUp saw its stock close around 43 percent above its IPO price of $14 on its first day of trading, its stock has trended down since it went public at the end of March. ThredUp closed at $18.39 on Thursday, April 8. The company is one of a handful of clothing and accessories resale companies to go public in recent years, including Poshmark and The RealReal.

    Coursera

    • IPO date: March 31, 2021
    • IPO price: $33
    • IPO valuation: $4.3 billion
    • Initial post-IPO arc: Positive.

    Coursera closed its first day of trading at $45, about 36 percent above its IPO price. Since then, the company’s stock price has gone up, closing at $56 on Thursday, April 8. It makes sense given what a big year the edtech space has had. Coursera marks the first major edtech IPO of the year, though it’s possible it won’t be the last. Other edtech companies rumored to be 2021 IPO candidates include Duolingo and Udemy.

    Compass

    • IPO date: April 1, 2021
    • IPO price: $18
    • IPO valuation: $8 billion
    • Initial post-IPO arc: Negative.

    Compass’ IPO comes after a busy year for the residential real estate market. The company, which operates like a brokerage but gives agents a suite of digital tools to better market themselves, raised about $450 million through its IPO. However, in the week that Compass has been public, its stock price has fallen slightly, closing at $21.90 on Thursday, April 8, below its IPO price. The company priced its shares at $18, the low end of its IPO range, after lowering its price range from between $23 and $26 to between $18 and 19.

    Direct Listings

    Roblox

    • First day of trading: March 10, 2021
    • Reference price: $45
    • Valuation: $30 billion
    • Initial arc: Positive.

    Roblox marks both the first major direct listing of the year (in terms of tech companies) and one of the most-anticipated public debuts for gaming companies. The company’s stock surged 43 percent above its reference price and has had a generally positive trend since then, though of course there have been dips here and there. Roblox’s stock closed at $70.76 on Thursday, April 8.

    SPACs Clover Health

    • First day of trading: Jan. 8, 2021
    • SPAC proceeds: Up to $1.2 billion
    • SPAC valuation: $7 billion, according to the Silicon Valley Business Journal
    • Initial stock price arc: Negative

    Clover Health was the first VC-backed company to go public via a special purpose acquisition company, with Chamath Palihapitiya’s SPAC, Social Capital Hedosophia V, acquiring the company. The company’s stock since the merger was completed in early January has trended negatively since it started trading, though, with its stock closing at $10.83 on Feb.18.

    Billtrust

    • First day of trading: Jan. 13, 2021
    • SPAC valuation: $1.3 billion
    • Initial stock price arc: Positive.

    Payment cycle management platform Billtrust went public in mid-January after merging with South Mountain Merger Corp. The company raised $115 million in funding while private and announced plans to go public via a SPAC in the fall. Since the company’s stock started trading, its initial arc has been positive. Billtrust’s stock closed at $18.80 on Feb. 18.

    Hims and Hers Health

    • First day of trading: Jan. 21, 2021
    • SPAC proceeds: $280 million
    • SPAC valuation: $1.6 billion, according to Forbes
    • Initial stock price arc: Positive

    Hims and Hers Health, which initially started out as a company aimed toward men’s health issues, went public after merging with special purpose acquisition company Oaktree Acquisitions Corp. The deal was among the first major VC-backed SPAC mergers to be completed in 2021, and raised proceeds of about $280 million. Since the combined company’s stock started trading, its stock price has been trending up and closed at $19.01 on Feb. 18.

    ChargePoint Holdings

    • First day of trading: Feb. 26, 2021
    • SPAC proceeds: $450 million, according to Inside EVs.
    • Initial stock price arc: Negative

    Companies in the electric vehicle space are evidently popular targets for SPACs, and ChargePoint is among them. The company, which is based in Campbell, California, went public by merging with special purpose acquisition company Switchback Energy Acquisition Corp. Since the company completed the merger on Feb. 26 and began trading (closing at $30.83 last week), its stock has fallen a bit, closing at $26.13 on Friday, March 5.

    Metromile

    • First day of trading: Feb. 9, 2021
    • SPAC proceeds: Unclear
    • Initial stock price arc: Negative

    Digital insurance platform Metromile went public by merging with blank-check company INSU Acquisition Corp. II. The company, which is backed by investors including Index Ventures and Future Fund, follows other insurtech companies like Lemonade and Root to the public market, though through a SPAC rather than a traditional IPO. The company’s stock has mostly trended down since then, closing at $10.45 on Friday, March 5.

    Illustration: Dom Guzman

    Stay up to date with recent funding rounds, acquisitions, and more with the Crunchbase Daily.

    So, we’ve adapted our ever-updated Here’s Who’s Gone Public list to fit more with the times, and are including both traditional IPOs and other methods of going public. So far this year, that means IPOs and SPACs.

    Source: https://news.crunchbase.com/news/heres-whos-gone-public-in-2021-so-far/

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    The Briefing: Gupshup Raises $100M, Oda Bags Big Round For Groceries

    Crunchbase News’ top picks of the news to stay current in the VC and startup world.

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    Here’s what you need to know today in startup and venture news, updated by the Crunchbase News staff throughout the day to keep you in the know.

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    Gupshup raises $100M

    San Francisco-based Gupshup, a provider of conversational messaging tools, announced it has raised $100 million in fresh funding from Tiger Global Management.

    The financing sets a valuation of $1.4 billion for Gupshup, which says its API currently enables over 100,000 developers and businesses to build messaging and conversational experiences, used in over 6 billion messages per month.

    Gupshup has not raised a funding round since 2011, with total prior funding of around $44 million, per Crunchbase data. The company says it closed out 2020 with an annual revenue run rate of approximately $150 million.

    — Joanna Glasner

    Funding rounds

    Norway’s Oda bags $265M for grocery delivery: Oda (formerly Kolonial), a Norwegian online grocery delivery provider, raised 223 million euros ($265 million) in a funding round led by Prosus NV and SoftBank. The company plans to use the funds for international expansion.

    — Joanna Glasner

    Redis Labs raises $110M Series G: Database platform Redis Labs has closed a $110 million Series G funding round led by Tiger Global. The round brings the 10-year-old, Mountain View-based company’s valuation up to $2 billion.

    — Joanna Glasner

    Illustration: Dom Guzman

    Stay up to date with recent funding rounds, acquisitions, and more with the Crunchbase Daily.

    The financing sets a valuation of $1.4 billion for Gupshup, which says its API currently enables over 100,000 developers and businesses to build messaging and conversational experiences, used in over 6 billion messages per month.

    Source: https://news.crunchbase.com/news/briefing-4-8-21/

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    The Briefing: BYJU’S Buys Aakash For Nearly $1B, Alkami Plans $2B IPO, And More

    Crunchbase News’ top picks of the news to stay current in the VC and startup world.

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    Here’s what you need to know today in startup and venture news, updated by the Crunchbase News staff throughout the day to keep you in the know.

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    BYJU’S acquires Aakash for nearly $1B

    Indian online learning giant Byju’s has acquired New Delhi-based Aakash, a provider of tutoring and exam prep, in a deal reportedly valued at nearly $1 billion.

    Founded in 1998, Aakash is best known for its brick-and-mortar tutoring centers, but it has made inroads in online education in recent years. In 2019, the company raised $184 million from private equity firm Blackstone.

    The purchase follows a spate of large fundraising rounds for BYJU’S, which has pulled in over a billion dollars in the past year from multiple investors.

    — Joanna Glasner

    Public offerings

    Alkami eyes $2B valuation in IPO: Plano, Texas-based Alkami, a provider of digital banking software marketed to small and mid-sized banks and credit unions, is seeking a valuation of around $2 billion for its upcoming public offering, according to a Reuters report citing the company’s latest IPO filing. Founded in 2009, Alkami has previously raised at least $385 million in known funding, per Crunchbase data.

    — Joanna Glasner

    E-commerce

    Meesho lands $300M in SoftBank-led round: Indian social commerce startup Meesho has raised $300 million in a new funding round led by SoftBank Vision Fund II. The financing sets a valuation of $2.1 billion for the fast-growing company.

    — Joanna Glasner

    Health care

    Inscripta lands $150M, ships first Onyx platform: Inscripta, a Boulder, Colorado-based digital genome engineering company, closed on $150 million in Series E financing led by Fidelity Management & Research Co. and funds and accounts advised by T. Rowe Price. Including the new funding, Inscripta has raised a total of $459.5 million in known venture capital since it was founded in 2015, according to Crunchbase data.

    In addition to the funding, the company announced the first commercial shipment of its Onyx platform, which it touts as “the world’s first benchtop system for scalable digital genome engineering and consists of a benchtop instrument, consumables, software and assays.” Using a CRISPR-based workflow, the Onyx platform enables quick, parallel and trackable editing of single cells. CRISPR stands for “clustered regularly interspaced short palindromic repeats” and enables researchers to more easily identify DNA sequences and modify gene function to develop in vivo therapies that treat the underlying cause of disease, according to Benjamin Oakes, co-founder and CEO of molecular engineering company Scribe Therapeutics, which raised an oversubscribed $100 million round of Series B financing last week to further develop its “CRISPR by design” platform.

    StimScience inks $6M for sleep device: Berkeley-based StimScience, a consumer neuroscience startup, said in a blog post that it raised $6 million in seed funding led by Khosla Ventures. The company says it has prototyped its first consumer device, focused on using brain stimulation to improve sleep health, and is planning its first in-home beta trial for later this year.

    A number of startups have emerged in the past five years, including StimScience, that aim to inject technology into our sleep routine, a small part of our day that has an outsized impact on the quality of our waking hours and overall health. Since 2016, investors have pumped $1.9 billion into global companies focused on sleep technology and equipment, according to Crunchbase data.

    Digital-health funding high again in Q1 2021: Investments into U.S. digital-health companies closed at $6.7 billion in the first quarter of 2021 — the most-funded quarter to date, according to a new report from Rock Health. That was compared to $3.1 billion handed out in the first quarter of 2020. Rock Health counted 25 “mega deals,” meaning $100 million or more, during the quarter, led by telehealth company Ro, which brought in a $500 million Series D round led by FirstMark, General Catalyst and TQ Ventures. In addition to bigger deals, the organization also reported that companies closed them earlier in their life cycles, with the average age of startups receiving mega deals down to six years in the first quarter of 2021 from 12 years in 2017. Meanwhile, special purpose acquisition company deals were also prevalent during the quarter. Rock Health said it knew of at least 10 deals within digital health, including Hims and Hers Health, which went public in January after merging with special purpose acquisition company Oaktree Acquisitions Corp.

    — Christine Hall

    Knotel co-founder leaves startup

    Amol Sarva, co-founder of proptech company Knotel, is leaving the company, and had some harsh words for real estate investor Newmark on the way out.

    “Over the last few months, Newmark was a stalking horse on a process that used bankruptcy to take control of Knotel with around $100 million of new capital,” Sarva wrote in an email to Knotel contacts. “This process undermined lots of important relationships and hurt lots of customer and partners. I’m so disappointed that this was the direction pressed.”

    Sarva added that Newmark “literally hired a group of Adam Neuman-era (sic) WeWork bros to lead the company forward.”

    Knotel was once a unicorn, but the company announced it filed for bankruptcy earlier this year and that its assets were being acquired by Newmark. In the email, Sarva wrote that the company reached nearly $400 million of run rate in early 2020, posted gross profit, and kept more than two-thirds of revenue intact “while doing everything we could to support customer continuity and work with landlord partners amicably.”

    Knotel had raised at least $560 million in funding, according to Crunchbase, and was backed by investors including Norwest Venture Partners and Newmark.

    Illustration: Dom Guzman

    Stay up to date with recent funding rounds, acquisitions, and more with the Crunchbase Daily.

    Source: https://news.crunchbase.com/news/briefing-4-5-21/

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