Welcome to TechCrunch Fintech!
This week, we’re looking at Rippling’s controversial decision to ban some former employees from selling their stock, Carta’s massive valuation drop, a GenZ-focused fintech raise, and more!
But there is one big exception: It has banned former employees who work for a handful of competitors from selling their stock.
What else we’re writingIn early 2022, the fintech startup Bloom was accepted into Y Combinator as the first-ever startup from Sudan to participate in the famed accelerator.
In an unusual move, Capital One is teaming up with payment giants (and rivals) Stripe and Amsterdam-based Adyen to offer a free product aimed at fraud reduction, the financial services giant told TechCrunch in an exclusive interview.
BlackRock, an investor in Byju’s, estimates that its stake of Indian edtech giant, once valued at $22 billion, is now worth nothing.
So it doesn’t come as a surprise that BlackRock has implied a zero valuation to Byju’s.
At the end of October last year, BlackRock had cut the valuation of Byju’s to about $1 billion.
However, the research’s note chart (embedded below) did use zero in the column for estimated value.
The story has also been updated to emphasize BlackRock’s valuation adjustment in its Byju’s stake.
The big idea was to become the transfer agent, brokerage and clearinghouse for all private stock transactions in the world.
Roughly 15 months later, in late 2022, the company’s CEO, Henry Ward, told Axios that Carta was worth even more – $8.5 billion – following a separate secondary sale.
(He did not disclose how many shares were sold at this valuation or who bought them.)
Now, Carta is seemingly returning to its roots – and an earlier valuation that’s probably better suited to the business.
Over the years, Carta has raised roughly $1.2 billion from investors, according to the startups tracker Tracxn.
In a research note, HSBC estimates that the Indian edtech giant Byju’s, once valued at $22 billion, is now worth nothing.
The write-down in its estimation makes Byju’s one of the most spectacular startup slides in recent memory.
Those issues — coupled with abrupt resignations from its auditor and board members — contributed to derailing a $1 billion fundraise deliberation by Byju’s.
Prosus, one of Byju’s largest investors, publicly slammed the startup, alleging it “regularly disregarded advice” from the backer.
It stands to reason then, that in the research note HSBC also estimated the value of Prosus’ 10% stake in the Indian startup to be zero because of the ongoing legal cases and funding crunch.
BIRA also takes aim at Amazon’s “Buy Box,” claiming that Amazon manipulated which retailers were selected for the coveted placement.
BIRA and its legal team say that the claim is the biggest ever collective action to be launched by retailers in the country.
Making itself a must use for retailers, Amazon has then proceeded to cause damage and financial loss to retailers by misusing their confidential data that Amazon was entrusted to keep safe and by preferencing its own retail operations.
Retailers in the U.K. were entitled to be treated better and fairly by Amazon.
The U.K. is its largest international market, where it made $33.6 billion in revenues in 2023 (out of $575 billion in global revenues).
Stock-trading platform Robinhood is diving deeper into the cryptocurrency realm with the acquisition of crypto exchange Bitstamp.
With Bitstamp under its wing, Robinhood says that it will be better positioned to target retail and institutional crypto investors across Europe, Asia, and the U.S., with Bitstamp currently holding more than 50 licenses and registrations to operate in these markets.
“The acquisition of Bitstamp is a major step in growing our crypto business,” Robinhood’s crypto general manager Johann Kerbrat said in a statement.
“The Bitstamp team has established one of the strongest reputations across retail and institutional crypto investors.
Through this strategic combination, we are better positioned to expand our footprint outside of the U.S. and welcome institutional customers to Robinhood.”
For Informatica investors, it was the opposite: The price was too low to warrant selling — they wanted more, more, more — and their stock also dropped, down a similar amount over the same period.
The biggest by far of that bunch was the $28 billion deal to buy Slack at the end of 2020.
Informatica is also far smaller than Salesforce, making its potential revenue bump to Marc Benioff’s company modest.
The ace up Informatica’s sleeve is that while its total revenue growth is slow, one important segment of its revenues is expanding quickly.
If we were to compare Informatica cloud net-new ARR that it expects this year instead, the percentage becomes even smaller.
Welcome to Startups Weekly — your weekly recap of everything you can’t miss from the world of startups.
Despite this general downturn, certain segments like generative AI continue to attract significant funding, indicating a selective yet substantial interest in specific AI applications.
AI investment is slowing down for a few reasons, like the crowded market and the steep costs of building big AI models.
Investors are getting pickier and want to see real, solid returns instead of just throwing money at hopeful growth.
(That isn’t stopping them from raising billion-dollar funds focusing on AI, of course.)
Powerhouse venture capital firm Andreessen Horowitz is promoting Jennifer Li to general partner after six years at the firm.
She’s being tapped to help invest the new $1.25 billion Infrastructure fund managed by longtime a16z general partner Martin Casado.
The Infrastructure fund is part of the fresh $7.2 billion that the Silicon Valley VC giant just raised.
Li has been an investing partner on the Infrastructure team for a while, which means she was already writing checks and taking board seats.
Plus she’s one of only four GPs on the Infrastructure team.
What is worth $11 billion and wants to go to Mars to collect rocks?
NASA’s mission to Mars to collect rocks that was expected to cost $11 billion and take ages.
So, the U.S. space agency is throwing the doors open to get more input, and that means that startups are looking at an opportunity that is truly out of this world.
To close, the massive, gobsmackingly big $7.2 billion worth of new funds from a16z.
For the full interview transcript, for those who prefer reading over listening, read on, or check out our full archive of episodes over at Simplecast.
