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Citadel ID raises $3.5M for API-delivered income and employment verification

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This morning Citadel ID announced a combined $3.5 million raise for its income and employment verification service. The startup provides an API to customer companies, allowing them to rapidly verify details of consumer employment.

The capital came from a blend of venture firms and angels. On the firm side, Abstract and Soma VC were in there, along with ChapterOne. Brianne Kimmel put capital in as well, according to the startup. And denizens with work histories at companies like Zynga (Mark Pincus), Stripe (Lachy Groom), Carta (Henry Ward), and others also put cash into the fundraise.

Citadel was founded back in June of 2020, before raising capital, snagging its first customer, and shipping its product all inside of the same year.

The idea for Citadel ID came when co-founder Kirill Klokov worked at Carta, the cap-table-as-a-service startup that recently built an exchange for the trading of private stock. Klokov discovered while working on the tech side of the company how hard it was to verify certain data, like employment and income and identity.

As Carta deals with money, stock, and the collection and distribution of both, you can imagine why having having a quick way to verify who worked where, and since when, mattered to the company. But Klokov came to realize that there wasn’t a good solution in the market for what Carta needed, sans building integrations to a host of payroll managers by hand and dealing with lots of data with varying taxonomies. That or using an in-the-market product, like Equifax’s The Work Number, which the founder described as expensive and offering relatively low coverage.

To fill the market void Klokov helped found Citadel ID, quickly building integrations into payrolls managers where there were hooks for code, and working around older login systems when needed. Citadel ID’s service allows regular folks to provide access to their employment data to others, allowing for the verification of their income (a rental group, perhaps), or employment (Carta, perhaps) quickly.

Per the startup the market demand for such verifications is in the hundreds of millions every year in the United States. So, Citadel should have plenty of market space to grow into. Citadel ID has around 20 customers today, it told TechCrunch, and charges on a per verification basis.

Finally, while Citadel also offers data via its website and not merely through its API, the startup still fits inside the growing number of startups we’ve seen in recent quarters foregoing traditional SaaS, and instead offering their products via a developer hook (sometimes referred to as a ‘headless’ approach). API-delivered startups are not new, after all Twilio went public years ago. But their model of product delivery feels like its gaining momentum over managed software offerings.

Let’s see how quickly Citadel ID can scale before it raises its Series A.

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

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BrioHR raises $1.3M ahead of Y Combinator’s demo day

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As the next Y Combinator demo day approaches, more startups from the current Winter 2021 batch are showing up in our inboxes. One of the most interesting from the mix is BrioHR, which is building human resources (HR) software for Southeast Asia.

The company fits into a theme I’ve noticed amongst startups, namely a focus on taking proven software genre approaches to specific parts of the world, localizing them and building in-region winners. This theme is not new, of course, but it does feel slightly more pronounced amongst recent accelerator batches than before (TechCrunch covers Techstars, Y Combinator, 500 Startups and other accelerators as part of our startup focus). Perhaps this is the impact of so many accelerators going virtual, widening the founder pool from whom they might matriculate to include a more global group of founders.

Back to BrioHR itself, the company is announcing $1.3 million in fundraising, inclusive of its YC check. The investment was led by Global Founders Capital, and saw participation from East Ventures and angel investors.

TechCrunch caught up with Benjamin Croc, the company’s co-founder and CEO, who is located in Kuala Lumpur, Malaysia (the city pictured in the image at the top of this post). The time zones were tricky to navigate, but the company’s vision was simple enough: A software-as-a-service (SaaS) HR software suite, tailored to fit the laws of the Southeast Asian region.

Croc and his co-founder, Nabil Oudghiri, founded the company in 2018, incorporating in the second half of the year after talking over their idea for a few months. BrioHR did not launch its product until the fourth quarter of 2019, opening for what Croc described as early adopters. The startup launched more broadly in the first quarter of 2020, right in time for COVID-19 to shake up the world.

Its fundraising came in two chunks, one in the middle of 2020 and one that came in the third quarter of the year; the first chunk of the raise was larger than the second. BrioHR raised the capital using a convertible note, with terms that Croc described as near to standard.

In our conversation, TechCrunch was curious about how prevalent SaaS as a model is in Malaysia and the other countries the startups wants to sell into. The co-founder said that while SaaS is not as well known in his part of the world as it is in the United States — not a huge surprise given that the U.S. is the largest SaaS market in the world — he praised the speed at which Southeast Asian countries adopt business trends; if Croc is right, his view could point to a very active subscription software market in the region in coming years.

BrioHR competes with local companies that are more focused on providing single solutions, like payroll management. From our discussion, it appears that Croc hopes that by going broad, in a feature sense, BrioHR will surpass legacy competitors. The startup is itself still building out its regional tooling, providing payroll support in only a handful of countries. It intends to expand that service to new countries this year, and be everywhere with its payroll product in two to three years, its co-founder said.

Notably, even though it has already raised capital, BrioHR intends to take part in Y Combinator’s demo day. Croc said it is taking part for optionality. TechCrunch read that as the company isn’t actively looking to raise more capital at the moment, but wouldn’t turn down another convertible note at a comfortable cap. Then again, what company at any demo day would?

Since launching out of its early-adopter program, Croc said that the company has grown 10x. That’s not hard from a small base, so the company’s 2021 growth will be more illustrative of its true near-term potential. Let’s see what new metrics it breaks out in a few weeks’ time.


Early Stage is the premiere ‘how-to’ event for startup entrepreneurs and investors. You’ll hear firsthand how some of the most successful founders and VCs build their businesses, raise money and manage their portfolios. We’ll cover every aspect of company-building: Fundraising, recruiting, sales, legal, PR, marketing and brand building. Each session also has audience participation built-in — there’s ample time included in each for audience questions and discussion.


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Twitter rolls out vaccine misinformation warning labels and a strike-based system for violations

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Twitter announced Monday that it would begin injecting new labels into users’ timelines to push back against misinformation that could disrupt the rollout of COVID-19 vaccines. The labels, which will also appear as pop-up messages in the retweet window, are the company’s latest product experiment designed to shape behavior on the platform for the better.

The company will attach notices to tweeted misinformation warning users that the content “may be misleading” and linking out to vetted public health information. These initial vaccine misinformation sweeps, which begin today, will be conducted by human moderators at Twitter and not automated moderation systems.

Twitter says the goal is to use these initial determinations to train its AI systems so that down the road a blend of human and automated efforts will scan the site for vaccine misinformation. The latest misinformation measure will target tweets in English before expanding.

Twitter also introduced a new strike system for violations of its pandemic-related rules. The new system is modeled after a set of consequences it implemented for voter suppression and voting-related misinformation. Within that framework, a user with two or three “strikes” faces a 12-hour account lockout. With four violations, they lose account access for one week, with permanent suspension looming after five strikes.

Twitter introduced its first pandemic-specific policies a year ago, banning tweets promoting false treatment or prevention claims along with any content that could put people at higher risk of spreading COVID-19. In December, Twitter added new rules focused on popular vaccine conspiracy theories and announced that warning labels were on the way.

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Rocket Lab CEO Peter Beck explains why the company needs a bigger rocket, and why it’s going public to build it

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Rocket Lab packed a ton of news into Monday to kick off this week: It’s going public via a SPAC merger, for one, and it’s also building a new, larger launch vehicle called Neutron to support heavier payloads. I spoke to Rocket Lab founder and CEO Peter Beck about why it’s building Neutron now, and why it’s also choosing to go public at the same time. Unsurprisingly, the two things are tightly linked.

“We have the benefit of flying Electron [Rocket Lab’s current, smaller launch vehicle] for a lot of customers. and we also have a Space Systems Division that supplies components into a number of spacecraft, including some of the mega constellations,” Beck told me. “So we have very strong relationships with, with a lot of different customers, and I think we get unique insight on where the industry is going, and where the where the pain points are.”

Those pain points informed Neutron, which is a two-stage reusable rocket. Rocket Lab already broke with Beck’s past thinking on what the launch market needed by developing partial reusability for Electron, and it’s going further still with Neutron, which will include a first-stage that returns to Earth and lands propulsively on a platform stationed at sea, much like SpaceX’s Falcon 9. But the market has shifted since Rocket Lab built Electron – in part because of what it helped unlock.

“The creation of Neutron came from from two discrete factors: One, the current need in the marketplace today. Also, if you project it forward a little bit, you know, Neutron will deliver the vast majority – over 90% of – all the satellites that, that are around or in some form of planning. And if you look at those satellites, 80% of them are mega constellations, by volume. So, in talking with, with a bunch of different customers, it was really, really apparent that a mega constellation-building machine is what the market really needs.”

Beck says that combining that market needs with a historical analysis that showed most large launch vehicles have taken off half-full resulted in them arriving at Neutron’s 8 metric ton (just over 17,600 lbs) total cargo mass capacity. it should put it in the sweet spot where it takes off full nearly every time, but also can still meet the mass requirement needs of just about every satellite customer out there, both now and in the future.

“We’re covered in scars and battle wounds from the development of Electron,” “The one thing that that Elon and I agree on very strongly is, by far the hardest part of a rocket is actually scaling it – getting to orbit is hard, but actually scaling manufacturing is ridiculously hard. Now, the good news is that we’ve been through all of that, and manufacturing ins’t just as product on the floor; it’s ERP systems, quality systems, finance, supply chain and so on and so forth. So all that infrastructure is is built.”

In addition to the factory and manufacturing processes and infrastructure, Beck notes that Electron and Neutron will share size-agnostic elements like computing and avionics, and much of the work done to get Electron certified for launch will also apply to Neutron, realizing further cost and time savings relative to what was required to get Electron up and flying. Beck also said that the process of making Electron has just made Rocket Lab extremely attuned to costs overall, and that will definitely translate to how competitive it can be with Neutron.

“Because electron has a $7.5 million sticker price, we’ve just been forced into finding ways to do things hyper efficiently,” he said. “If you’ve got a $7.5 million sticker price, you can’t spend $2 million on flight safety analysis, payload environmental analysis, etc – you just can’t do that. With a $60 or $80 million vehicle that you can amortize that. So we’ve kind of been forced into doing everything hyper, hyper efficiently. And it’s not just systems; it includes fundamental launch vehicle design. So when we apply all of those learnings to nNutron, we really feel like we’re gonna bring a highly competitive product to the marketplace.”

As for the SPAC merger, Beck said that the decision to go public now really boils down to two reasons: The first is to raise the capital required to build Neutron, as well as fund “other” projects. The other is to acquire the kind of “public currency” to pursue the kinds of acquisitions in terms of business that Rocket Lab is hoping to achieve. Why specifically pursue a SPAC merger instead of a traditional IPO? Efficiency and a fixed capital target, essentially.

“We were actually sort of methodically stepping towards an IPO at the time and, we were just sort of minding our own business, but it was clear we were pursued very vigorously by a tremendous number of potential SPAC partners,” Beck told me. “Ultimately, on the balance of timelines, this just really accelerated our ability to do the things we want to do. Because, yes, as you pointed out, that this kind of streamlined the process, but also provided certainty around proceeds.”

The SPAC transaction, once complete will result in Rocket Lab having approximately $750 million in cash to work with. One of the advantages of the SPAC route is that how much you raise via the public listing isn’t reliant on how the stock performs on the day – Beck and company know and can plan on that figure becoming available to them, barring any unexpected and unlikely barriers to the transaction’s closing.

“Having all the capital we need, sitting there ready to go, that really sets us up for a strong execution,” he said. “If you look at Rocket Lab’s history, we’ve only raised spend a couple of hundred million dollars to date, within all the things we’ve done. So capitalizing the company with $750 million – I would expect big things at that point.”


Early Stage is the premiere ‘how-to’ event for startup entrepreneurs and investors. You’ll hear firsthand how some of the most successful founders and VCs build their businesses, raise money and manage their portfolios. We’ll cover every aspect of company-building: Fundraising, recruiting, sales, legal, PR, marketing and brand building. Each session also has audience participation built-in — there’s ample time included in each for audience questions and discussion.


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