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Firstminute Capital launches second $111 fund, featuring a whos-who of founders as LPs

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London HQ’d Firstminute Capital has announced its second early-stage venture fund of $111m (£87m). Founded and cornerstoned in 2016 by Brent Hoberman CBE (best known as co-founder of lastminute.com and MADE.com), together with Spencer Crawley (formerly of Goldman Sachs), this new fund comes after the first fund of $100M, giving Firstminute $211M assets under management, investing across Europe and the US at the seed stage.

Firstminute’s team of 18 is based in London, Stockholm and Berlin and now has plans to open an office in LA next year.

Of note is the fact that its LPs now number 70 founders of billion-dollar businesses as investors, and that Firstminute is being so open. VCs typically do not reveal much information about LPs. Hoberman has clearly also leveraged his position as founder of the Founders Forum group which runs events and activities for European tech founders.

The fact that so many founders – largely drawn from the ranks of European startups – have invested is unusual, certainly for European VC funds. It includes 16 founders of $10bn+ “decacorn” technology businesses, including Palantir, Wayfair, Ocado, MongoDB, Zalando, Supercell and Check Point, as well as founders from Huda Beauty, Graphcore and Rappi. Included are board members and CEOs from large technology companies.

RIT Capital Partners is the fund’s anchor investor. This is their first such position in a European venture capital firm. They previously backed leading US funds including Sequoia, Benchmark, Thrive and Iconiq. Additional institutional investors include the Chinese technology giant Tencent, FMCG conglomerate Henkel, London-based venture fund Atomico and four Californian multi-stage firms.

The existing Fund I portfolio consists of 56 companies that have collectively raised approximately $0.5bn in funding.

Firstminute says half of its current portfolio companies have UK headquarters, with the remaining half split between continental Europe and North America. Two-thirds of the businesses are B2B and one third are B2C.

Hoberman said in a statement: “European technology is reaching escape velocity, and it’s fantastic to enable so many global serial entrepreneurs to give their experience to the next generation: we have over 70 unicorn founders joining us on this journey so far, and more to come as we approach final close. Seed venture investing is attracting ever higher quality backers which will help more founders succeed.”

Crawley, firstminute Co-founder & General Partner, said: “Our healthcare systems, workplaces and educational establishments face fresh complexities. The service economy is having to re-imagine itself. The gap between financial markets and the real economy is growing wider (with the young most at risk). Start-ups are not a panacea, but emerging technology companies have a key role to play in today’s recovery strategy, both in their mindset and the products they will create.”

I asked Hoberman to what extent was the internationalization of the fund‘s geographical footprint related to Brexit?

“Some investors have asked us about the risks of Brexit to a UK-based fund and it’s been great to highlight the international nature of our approach,” he said. “The potential threats of a bad Brexit deal ensured we moved faster to cover more geographies.”

I also asked him what advantages or disadvantages does having so many founders as LPs confer on the fund?

“Operators understand the rollercoaster of the founder journey well. They know the path to success is rarely linear. They have lived the scaling journey with all its challenges. They can impart this wisdom to the next generation.

“These founders know about blitzscaling, board management, prioritization, fundraising, internationalization and above all the role of talent and teams. This knowledge can make the difference between failure and extraordinary success.

“Furthermore successful founders often have world-class network, useful for hiring, internationalization and business development deals,” he said.

Firstminute also announced some team changes. Arek Wylegalski, formerly of Index Ventures, has joined as a partner for Fund II. Arek was a Venture Partner with the firm during Fund I. Lina Wenner, formerly of BCG, has been promoted to Associate Partner, and Camilla Mazzolini, Clara Lindh Bergendorff and Sam Endacott have been promoted to Principals. Min Nolan, Head of Platform & Operations, and Anais Benazet, Head of Community, lead the portfolio support function, whilst Henry Lane-Fox, Steve Crossan and Tommy Stadlen continue to invest as venture partners.

The backers of firstminute capital funds include the founders and/or executives from the companies listed below:

firstminute LPs – Founders of $10bn+ companies, include:

Joe Lonsdale (Palantir Technologies), Robert Gentz (Zalando), Niraj Shah (Wayfair), Tim Steiner (Ocado), Marius Nacht (Check Point), Kevin Ryan (MongoDB), Ilkka Paananen (Supercell), Adyen, Autonomy, Airtel.

firstminute LPs – Founders of $1bn+ companies, include:

Sebastian Mejia (Rappi), Ross Mason (MuleSoft), Pete Flint (Trulia), Martin Migoya (Globant), Vikrant Bhargava (PartyGaming), Martin Varsavsky (Jazztel, Fon, Eolia), Fabrice Grinda (OLX), Steve Fredette (Toast), Rafi Gidron (Chromatis), Simon Nixon (Moneysupermarket), Lars Hinrichs (XING), Johan Brand (Kahoot), Huda Kattan (Huda Beauty), Tom Chapman & Ruth Chapman (Matchesfashion), Nigel Toon (Graphcore), Carl Pei (OnePlus), Hanzade Dogan (Hepsiburada), Barry Smith (Skyscanner), Sir Charles Dunstone (Carphone Warehouse), Hamish Shephard (HelloFresh), Alexander Rittweger (Payback), Marketshare, King.com, BlaBlaCar, Qunar, Net-a-Porter, Fox Kids Europe, Webhelp, Betfair, Datamonitor, Tradex Technologies, Zoopla.

firstminute LPs – Current or Former CEOs and Chairs, include:

Eric Schmidt (former Chairman and CEO, Google), Michael Lynton (Chairman, Snap and Warner Music Group, former CEO and Chairman, Sony), Sir Paul Ruddock (Co-founder & former CEO of Lansdowne Partners, Chairman Oxford University Endowment), Lord Mervyn Davies (Chairman of Corsair Capital, former Minister and Standard Chartered CEO & Chairman), Linda Fayne Levinson (former Chairwoman of Hertz), Jeremy Coller (Founder, Chairman and CIO Coller Capital), David Giampaolo (Chairman, Gousto), Ian Gallienne (CEO, Sienna Capital), Alexander de Carvalho (Co-founder & CIO of Public.io, Heineken NED), Babatunde Soyoye (Co-founder and Managing Partner, Helios Investment Partners), Nextdoor, PicsArt, Booking.com, Nordeus, Kinnevik AB, JCDecaux Holdings.

firstminute LPs – Institutional Investors, include:

RIT Capital Partners, Tencent, Atomico, Henkel, Felicis Ventures, The Raine Group, LionTree Partners, Lombard Odier.

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

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Apple’s new editorial franchise, Apple Podcasts Spotlight, to highlight interesting creators

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Apple today announced a new editorial franchise called Apple Podcasts Spotlight, which aims to highlight rising podcast creators in the U.S. The editorial team at Apple will select new podcast creators to feature every month and then give them prominent screen real estate in the Apple Podcasts app and promote them across social media and elsewhere. This will allow creators to reach a wider audience, similar to how the App Store showcases a selection of recommended apps and games with large banners at the top of its screen.

The first Spotlight creator is Chelsea Devantez, who hosts the podcast Celebrity Book Club. On Fridays, Chelsea and special guests including Emily V. Gordon, Gabourey Sidibe, Ashley Nicole Black and Lydia Popovich will meet to discuss the memoirs of “badass celebrity womxn,” as an announcement describes it.

The idea for the show began a year ago when Devantez was reading Jessica Simpson’s memoir and started recapping it on Instagram. The reaction from her followers prompted her to expand the concept into a podcast.

Upcoming episodes will feature Oscar-nominated writer and producer Emily V. Gordon talking Drew Barrymore’s “Little Girl Lost;” actress Stephanie Beatriz discussing Celine Dion’s memoir “My Story My Dream;” Leighton Meester on Carly Simon’s “Boys in the Trees;” and a special Valentine’s Day episode where Chelsea and TikTok star Rob Anderson read Burt Reynolds’ and Loni Anderson’s competing divorce memoirs.

“Apple Podcasts Spotlight helps listeners find some of the world’s best shows by shining a light on creators with singular voices,” said Ben Cave, Global Head of Business for Apple Podcasts, in a statement about the launch. “Chelsea Devantez has created a fun, vibrant space with Celebrity Book Club for listeners to gain new perspectives on the celebrities we thought we knew. We are delighted to recognize Chelsea and Celebrity Book Club as our first Spotlight selection and look forward to introducing creators like Chelsea to listeners each month,” he added.

Apple says future Spotlight creators will be announced monthly from across a range of podcast genres, formats and locations, and will often focus on independent and underrepresented voices. The content is previewed ahead of selection to ensure quality, but there are no specific requirements about the podcast size and reach.

In general, the new Spotlight creators will debut toward the front of the week, but the specific days are fluid to adapt to holidays, major cultural events, and others. The next Spotlight selection, for example, will launch in mid-February.

The Spotlight creators will be featured at the top of the Browse tab of Apple Podcasts and will be promoted through the Apple Podcasts social media accounts. Some form of in-app featuring will continue throughout the entire month the creators are in the “spotlight.”

Apple says it will also collaborate with the featured creators on their own channels. And, over time, you’ll see promotion via additional Apple-operated channels including outdoor advertising in major U.S. metros.

The news of the new editorial program comes shortly after a report from The Information suggested Apple is working to expand its podcasts platform with the introduction of a podcast subscription service, threatening rivals like Spotify, SiriusXM and Amazon.

Though Apple Podcasts still leads the market, Spotify has been catching up by spending over $800 million on podcast companies, like Anchor, the Ringer, Gimlet Media, and more recently, podcast ad company Megaphone.

SiriusXM, meanwhile, bought podcast management and analytics platform Simplecast, ad tech platform AdsWizz, and podcast app Stitcher. Not to be left out, Amazon just a few weeks ago announced it was acquiring the podcast network Wondery.

Beyond helping the creators grow their audience, Apple says the larger goal with the program is to welcome new audiences to podcasts, in general.

Though podcasts are growing in popularity, the monthly podcast listener base is just 37% in the U.S., according to Edison Research. That means it’s nowhere near being an activity that’s popular among a majority of the U.S. population at this time. Before Apple can effectively monetize podcasts as a subscription service, it needs to help get more people listening to podcasts on a regular basis.

Apple declined to say if the program would expand outside the U.S. at a later date.

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We’ll discuss the future of the gig economy and contract works at TC Sessions: Justice on March 3

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Like so many other subjects, the ongoing COVID-19 pandemic has brought concerns about the gig economy and contract workers into sharp focus over the past year which is why we’ll be diving into this topic at TC Sessions: Justice on March 3.

From food delivery services like Seamless to warehouse and fulfillment jobs at places like Amazon, these often low-paid jobs have kept people supplied with essentials during one of the most difficult moments in modern American history.

But why is it that jobs our society has labeled “essential” often carry the least number of protections for those who fulfill them? Is there a way to ensure a safety net for the people who need it the most?

As the pandemic continued to rage, California passed Proposition 22. The law was regarded as a big win for companies like Uber and Lyft (who pumped a collective $200 million into promotions) and a tremendous step back for workers looking for basic employment rights. But the battle between the Prop 22 proponents and the gig workers who oppose it continues. A group of rideshare drivers in California and the Service Employees International Union have filed a lawsuit alleging Proposition 22 violates California’s constitution.

To discuss the gig worker economy and its future in a post-Prop 22 world, we will be joined by Jessica E. Martinez, the co-executive director of the National Council for Occupational Safety and Health, an organization devoted to promoting health and safety conditions for workplaces; Vanessa Bain, a gig worker activist who co-founded the Gig Workers Collective; and Christian Smalls, a former Amazon worker turned activist.

TC Sessions: Justice will be held online on March 3. Get your tickets today!


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Wendy Xiao Schadeck becomes Northzone’s first New York partner

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Northzone‘s new partner Wendy Xiao Schadeck isn’t new to the firm — she actually joined back in 2015.

Before entering the venture world, Schadeck co-founded co-working and childcare startup CoHatchery. And as a Northzone principal, she’s already been involved in the firm’s investments in Spring Health (mental health), 3box (cloud infrastructure), Livepeer (blockchain-based video transcoding) and Magic.link (user authentication).

More broadly, Northzone says Schadeck helped to develop the firm’s investment theses around crypto, consumer technology, health, developer/web 3.0 infrastructure.

“Wendy has already proven herself through very insightful sector-driven thought leadership and has solidified our position in the New York ecosystem,” said General Partner Pär-Jörgen Pärson in a statement. “She has defined and redefined an honest, authentic and inspiring dialogue between herself as an investor and the entrepreneurs she supports.”

Schadeck told me that her interests have “crystallized” around three key areas — “open data, open finance and open community.” And she said that with her promotion to partner, she will be able to work even more closely with founders, a topic she’s become “obsessed” with.

“We’ve all seen this VC meme, ‘How can I be helpful?’ and I’ve sometimes accidentally literally said it,” Schadeck said. “But we mean it: Other than providing capital, first and foremost, on good terms, what other dimensions are there that are becoming more and more important? … How can I customize my approach to provide what the founder needs from me?”

While Schadeck is Northzone’s first New York-based partner (its other partners are in London and Stockholm), she said she will make investments outside the region, albeit with an NYC focus.

“We’ve tried to do this matrix approach, where we both have sectors that we’re pretty excited about and build expertise and experience in, as well as relationships” she said. “And those relationships are better with local entrepreneurs.”

 

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