Month: November 2022

When I went to book a rental car for Thanksgiving a few months ago, all that Hertz had left at O’Hare International Airport were Teslas. Usually, I end up with something like a Nissan Altima — not an amazing car, but one that gets the job done. Cheaply. But not this time.

Hertz is in the process of adding 100,000 Teslas to its rental fleet, so it was statistically probable that one day I’d end up renting one. I’m certainly in their target demo — all of our cars over the last seven-plus years have had a plug, and while none of them have been Teslas, I am what you might call Tesla-curious. Aside from a test drive of a Model Y a couple of years ago, I’d never driven one for an extended period of time.

What the heck, I thought. Let’s go for it.

Even though I’m far from an EV novice, I still wasn’t sure about renting an EV. I do the vast majority of my charging at home, and I’m familiar enough with my vehicles to know their real-world range and how the weather will affect it. I don’t have that same familiarity with the Model 3, and I wouldn’t have anything more than a 120v outlet at my parents’ house, which is two hours from the airport.

But I’ve got a weak spot for new technology and new ways of experiencing it, especially when it comes to electrification. Here went nothing.

How it went

When we picked up the car at the airport, I was directed to the kiosk, where a nice Hertz rep behind the counter explained that she had to give me a spiel, the same one she gives to all Tesla renters. She asked if I had any questions, and I told her that while I didn’t own a Tesla, I was familiar enough with EVs that I was confident I’d get by.

One difference she pointed out was that in place of the usual offer to pre-pay for a tank of gas, there was an option to place a $35 deposit in case I wasn’t able to return the car more than 70% charged. If I was able to charge it before returning it, the $35 would go back on my credit card. Seemed like a reasonable offer, so I took her up on it.

In our conversation, she mentioned that Hertz’s O’Hare fleet was largely being replaced with Teslas. Ah, so that’s why only Teslas remained.

We found the car, got the kids situated, adjusted the mirrors and steering wheel (no small feat), and headed out. Anyone who’s driven an EV is addicted to instant torque, and the Model 3 has it in spades. The twitchy accelerator pedal reminded me of our old BMW i3 — in a good way — as did the one-pedal driving, which activates regenerative braking when you lift your foot, allowing you to largely ignore the brake pedal. The suspension was tight, but not horribly so. It was certainly far better sorted than the Model Y, which on rough roads felt like it was pummeling my kidneys.

Though the car had enough range to make it to my parents’ house, I wanted to charge on the way to ensure we’d have enough for the return. (120v outlets are excruciatingly slow.) After entering our destination into the nav, we added another stop and searched for “supercharger.” Helpfully, the top hits were Superchargers along our route, starting with the one closest to our destination.

Driving the car was great, but letting it drive itself … not so much.

If EVs can work in rental car fleets, they can work anywhere by Tim De Chant originally published on TechCrunch

Coworking and warehouse space company Saltbox announced today the closing of a $35 million Series B led by Cox Enterprises and Pendulum Holdings. The news comes more than a year after Saltbox closed a $10.6 million Series A, bringing its total funding to $56 million.

As TechCrunch previously reported, Saltbox — which was founded in 2019 by Tyler Scriven, Maxwell Bonnie, and Paul D’Arrigo — is a pioneer of what it calls “co-warehousing.” With more than 10 facilities across the country, it allows small businesses and e-commerce outfits to ship and store goods all in one place. There are no lease requirements, and the company also offers integrated logistics services, like equipment rental.

Scriven, the company’s CEO, told TechCrunch that the company plans to use the extra capital to open at least three more locations, with two of those to open by the end of the year. The new Saltboxes are set to be situated in Miami, Minneapolis, and Phoenix. The company also wants to invest in software to create a more seamless logistics ecosystem.

“We’ve made a lot of progress over our first three years in physical infrastructure and service, and we are now going to increase our focus on software,” Scriven told TechCrunch. “Our goal is to create a frictionless end-to-end logistics ecosystem that is incredibly accessible and approachable to small businesses.”

Saltbox also faces the changing tides of the real estate and e-commerce markets. The former is up, while the latter is seeing a bit of a slowdown. Scriven said both situations helped businesses realize the need for Saltbox as they faced supply chain and logistics quandaries and the financial challenges of keeping a business afloat.

“Our customers made it clear to us that Saltbox was essential,” Scriven said, adding that the company hopes to educate and tap into the rising crop of digital entrepreneurs on the importance of having an ordered flow of logistics.

“One of the principal ways through which we are expanding our brand presence and brand awareness is through filling that knowledge gap,” he said. “Becoming not only an operational vendor and partner to these companies, but also a source of knowledge and inspiration, a source of confidence to approach this critically important aspect of their business.”

Saltbox’s Series B comes at what has been a daunting year for Black founders. TechCrunch previously reported that Black founders raised just 0.43% — or $187 million — of the nearly $43 billion in venture capital allocated this Q3. Scriven and Bonnie, who are Black, represent outliers in a year that saw many VCs retreat to their old networks amid an economic downturn.

Scriven said it took about four months to close this round and said the company heard “far more nos than yesses.” He added, though, that having an established reputation, good product fit, and resilience helped carry them through.

Saltbox already had an established relationship with its investors. Approaching new investors is difficult during challenging economic times, Scriven noted, which is why it was imperative to lean into their existing network.

“I feel very fortunate to not only have gotten this round done but also to have gotten it down with really phenomenal investors that we know well and trusted,” Scriven continued.

Robbie Robinson, the CEO and co-founder of Pendulum Holdings, said that Scriven and the Saltbox team have managed to tap a “strategic and unique opportunity” that sits at the “intersection of community and shared services in warehousing, inventory management, and fulfillment.”

“This is evident in the company’s growth, and its ongoing expansion across geographies speaks to the high demand for this differentiated bundling of services,” Robinson said. “I am excited to join Saltbox’s board of directors and continue Pendulum’s partnership with the team as they establish an infrastructure that supports emerging and fast-growing small to medium businesses that power our economy.”

“With its mission to power the next generation of entrepreneurs to launch, grow, and scale, Saltbox is a great partner to help continue Cox’s mission to contribute to the economic well-being of an increased number of businesses and their employees,” Evelyn Bolden, the senior director of strategy and investments for Cox Enterprises, said. “Saltbox is committed to helping e-commerce owners get the most out of their business in a community-focused workspace.”

Others in the round include Playground Global, Kapor Capital, and Lincoln Properties West.

Scriven said he hopes to stay focused on making the most impact he can. That means the company will double down on its mission to help small businesses adapt to the ever-changing retail economic landscape because, as Scriven puts it, “when small businesses are threatened, the core of our economy is threatened.”

“It’s a basic necessity to ensure that SMBs have access to a highly accessible, highly approachable, human-centric logistics platform that can really meet them where they are and ensure they remain not only competitive but ultimately thrive,” Scriven said. “This is a problem that must be solved, and it is not optional to solve the problem.”

‘Co-warehouse’ company Saltbox closes $35M Series B by Dominic-Madori Davis originally published on TechCrunch

Solana-centric crypto wallet Phantom is expanding its support to two other blockchains, Ethereum and Polygon, the company exclusively told TechCrunch.

By adding support for Ethereum and Polygon, Phantom is expanding users’ access from only Solana to all three of the ecosystems, Brandom Millman, CEO and co-founder of Phantom, said to TechCrunch. “We want to bring communities together from across web3 with a safe and easy to use self-custody product that is suitable for mainstream adoption.”

The new Ethereum and Polygon integrations are live in beta mode on Phantom’s browser and iOS and Android applications with an aim for a public launch in the first quarter of 2023, Millman said. This means users can trade, receive and swap tokens in its wallet as well as collect NFTs across all three blockchains.

“We’re graduating from a mono-chain wallet to a multi-chain wallet,” Millman said. “It was always our goal to bring Phantom to a multi-chain world. It was always our understanding that the world was moving to a more multi-chain world so it’s something that is more of a homecoming for us.”

The three co-founders —Millman, Francesco Agosti and Chris Kalani — used to work in the Ethereum ecosystem at 0x, an Ethereum-focused financial protocol, so integrating the blockchain into Phantom’s wallet was “always something we aspired to do,” Millman said.

Phantom currently has over 2.5 million user sessions per day and over 25 million on-chain decentralized application (dApp) transactions per month. In June, it launched an in-wallet token swapper where users could transfer tokens and has completed over $1 billion in swap volume to date, with each transaction costing less than 1 cent in network fees, it said.

In January, Phantom hit a $1.2 billion valuation after closing a $109 million funding round led by Paradigm. Other investors in the crypto wallet include Andreessen Horowitz, Jump Capital, Solana and Variant.

The crypto world is quickly evolving, Millman noted. “People didn’t really think multi-chain was going to be a thing and Ethereum was seen as the only place for users and developers to interact with the world of web3. But now it’s pretty accepted that the world is moving to a multi-chain world and there’s competitors to Ethereum and Solana coming out.”

While a number of blockchains are competing for market share, Millman doesn’t think the crypto ecosystem will head “toward a world with thousands of chains,” but one with about three to five major blockchains. “We’ll see consolidation around it.”

The Phantom team will work closely with Polygon to build out a wallet compatible with the layer-2 blockchain’s ecosystem, it said. “Working with Phantom will allow us to deliver a feature-rich wallet that’s ready for mainstream consumers to use when interacting with apps powered by Polygon,” Ryan Wyatt, CEO of Polygon Studios, said in a statement.

In the future, Phantom will consider making its crypto wallet native with other blockchains, Millman said. “I think the whole wallet space is going to be growing quite a bit, especially in the wake of some of the failures around centralized systems we’ve seen recently. Non-custodial and self-custodial systems are going to be in the forefront quite a bit.”

The non-custodial wallet also aims to focus on security and protecting users against spam NFTs and phishing attacks through its automated warnings of probable malicious transactions or websites that could compromise individuals’ wallets, assets or permissions.

“We’ve gone to great lengths to improve the experience around ‘transaction preview’ [and] the ability for a user to understand what they are authorizing when interacting with a web3 application,” Millman said. “Our transaction preview technologies have prevented over 20,000 wallets from being drained with over 3,000 unique users saved in the last month alone.”

Phantom has also gone to great lengths to take down fake phishing websites and has helped remove over 2,000 fake websites targeting Solana communities, Millman added.

In the long term, Millman believes Phantom will become the “onboarding point and discovery point for users entering web3,” similar to how Google Chrome is synonymous with the internet or Web 2.0. “That’s our aim with Phantom for Web3: If a user wants to interact with web3, we want their first instinct to be to download our app. That’s our goal and north star.”

Solana-focused crypto wallet Phantom adds Ethereum and Polygon support by Jacquelyn Melinek originally published on TechCrunch

Apple debuted its first podcast award today with Slate’s “Slow Burn” as a winner for this year. The company said that the award is to celebrate the “outstanding quality, innovation, and impact” of the show.

“Slow Burn” first launched in 2017, and its latest season about Roe v. Wade was released on June 1, 2022 — a month after the draft decision of the reversal leaked. The season, hosted by Slate executive editor Susan Matthews had four episodes that discuss historical events leading up to the 1973 decision by the Supreme Court ruled that constitution grants a right to abortion.

Apple said that “Slow Burn” is one of the all-time popular podcasts on the platform clocking more than 100 million downloads. While the show is free, Slate offers bonus content from its catalog through its Slate Plus subscription available for $9.99 per month. The company is also offering a $99.99 per year annual subscription for a limited time.

The company said that the showmakers are releasing six “Slow Burn” extra episodes for free that contain personal stories and extended follow-up interviews with people featured in the series.

Apple’s podcast award comes nearly three years after the company first introduced its Music Awards. In August, the company introduced two new charts — Top Subscriber Shows and Top Subscriber Channels — for paid podcasts.

The Cupertino-based tech giant said that next month, its editors from 100 countries will publish a podcast list called “shows we loved” along with year-end charts for popular podcasts.

Apple also announced a list of App Store Awards winners earlier today with social networking app BeReal snagging the iPhone app of the year title.

Slate’s ‘Slow Burn’ is the winner of Apple’s first podcast award by Ivan Mehta originally published on TechCrunch

Expectations for this year’s holiday spend online were lukewarm, but initial activity — driven by deep discounts — has bucked predictions. Cyber Monday pulled in $11.3 billion in sales online according to figures from Adobe Analytics, which tracks seasonal e-commerce activity. This is 5.8% more than consumers spent on the same day last year (when $10.7 billion was recorded in sales, a drop on 2020’s $10.8 billion), and sets a record both for the day and the year so far.

The day is typically the biggest of the long weekend — in part because sales continue but people have returned to work — and it rounds out five days that overall exceeded estimates. As we reported, Thanksgiving saw $5.29 billion in sales and Black Friday had $9.12 billion in sales — both also up on earlier forecasts. The weekend between had $9.55 billion in sales. Altogether, “Cyber Week” — the period including those holidays and the days back at work as people continue to shop online — will reach $35.27 billion in sales online, up 4% over last year and accounting for 16.7% of all sales in the months of November and December.

Adobe expects $210 billion in sales for the two months, and so far in the season mobile has accounted for 44% of sales.

Salesforce separately released its own preliminary figures of $6 billion for Cyber Monday in the evening Monday. We’ll update these as we get more complete results.

Notably, although inflation is definitely being felt in the U.S., Adobe said that these figures were based on more transactions overall. At the peak, people were spending $12.8 million per minute on Monday, and Adobe said that its digital price index, which tracks prices across 18 categories, said that prices have been nearly flat in recent months.

Deep discounts — retailers perhaps anticipating needing to have something more to lure shoppers — have played a big role, too, as have the sheer availability of goods after shortages of the years before.

“With oversupply and a softening consumer spending environment, retailers made the right call this season to drive demand through heavy discounting,” said Vivek Pandya, lead analyst, Adobe Digital Insights, in a statement. “It spurred online spending to levels that were higher than expected, and reinforced e-commerce as a major channel to drive volume and capture consumer interest.”

Discounts on electronics were as strong as 25% off (they were 8% in the same period last year), and the biggest sales were in toys with average discounts of 34%.

Adobe says it calculates its data based on one trillion visits to U.S. retail sites, covering 100 million SKUs, and 18 product categories.

A lot of the buying was being done in preparation for the holidays, and that’s reflected in most popular categories. Top products included games, gaming consoles, Legos, Hatchimals, Disney Encanto, Pokémon cards, Bluey, Dyson products, strollers, Apple Watches, drones, and digital cameras, it said. Toys as a category saw a 452% boost in sales versus a day in October.

In other trends, buy-now-pay-later transactions (BNPL) continued to be force in how purchases are being made, although they appeared to be down slightly on Monday compared to Black Friday and the weekend: part of the reason has to do with shopping-cart sizes, Adobe said: people are more likely to use BNPL when totals are higher. Overall Cyber Week BNPL orders were up 85% over last week, with revenues up 88%.

Mobile also continues to account for a big proportion of buying, although Cyber Monday’s 43% of all online sales when people are back at their desks, was definitely down from the 55% of purchases on Thanksgiving.

The big question now will be whether online retailers, and shoppers, sustain this activity or whether this was an outsized push around discounts that will settle down in the days and weeks to come. Layoffs that we’ve been seeing in the e-commerce sector, and depressed valuations for companies in the space, are two indicators of more challenging times to come.

Cyber Monday online sales hit a record $11.3B, driven by demand, not just inflation, says Adobe by Ingrid Lunden originally published on TechCrunch

There’s no question about it: The market going into 2023 isn’t going to be what it was when 2021 ended, when growth at all costs sometimes trumped common sense.

But the market isn’t as “down” as it may seem. There’s plenty of money to be invested, and founders who have the right mix of purpose, business model and traction need to remember that opportunities for funding can still be found.

Sky-high valuations and questionable investments in 2021 have brought investors back to Earth and prompted more thorough analysis of investment opportunities. This return to discipline, demonstrated by a more tempered and stabilized volume of investor weekly pitch deck interactions, isn’t a big surprise. The pace in 2021 was unsustainable and there was bound to be a slowdown in the funds invested. However, it’s not because there is no money left.

As of September, there was around $290 billion in “dry powder” floating around — enough to fuel startup investments for the next four years — but founders are finding it harder to raise money than they have in many years. Instead of demanding growth at all costs, VCs are taking a deep breath and erring on the side of patience.

Founders may be discouraged in this environment, but they need to remember that they have “currency,” too. Founders should do their own due diligence by identifying investors who best suit their needs and focus on their core strengths and value propositions.

Due diligence isn’t only for investors

Founders should always be eager to set up meetings with investors, but they should aim to reach out to a variety of investors, too.

Much as a product is dependent on its market, a founder is dependent on their investors. Not all investor meetings are equal, so founders need to research their potential investors thoroughly.

DocSend’s recent pre-seed report found that the average number of investors contacted dropped from 69 to 60 in 2022, but the average number of meetings scheduled increased from 39 to 52. This could be a sign that early-stage founders are starting to practice due diligence on their end as well, vetting investors and bringing different expectations to every meeting.

Early-stage founders still have currency: Fundraising in times of greater VC scrutiny by Ram Iyer originally published on TechCrunch

SolarWinds and Log4j have made software supply chain security issues a topic of intense interest and scrutiny for businesses and governments alike.

SolarWinds was a terrifying example of what can go wrong with the integrity of software build systems: Russian intelligence services hijacked the software build system for SolarWinds software, surreptitiously adding a backdoor to a piece of software and hitching a ride into the computer networks of thousands of customers. Log4J epitomizes the garbage-in, garbage-out problem of open source software: If you’re grabbing no-warranties code from the internet, there are going to be bugs, and some of these bugs will be exploitable.

What’s less talked about, though, is that these attacks represent only a fraction of the different types of software supply chain compromises that are possible.

Let’s take a look at some of the lesser-known, but no less serious, types of software supply chain attacks.

Unauthorized commits

This class of attacks describes an unauthorized user compromising a developer laptop or a source code management system (e.g., GitHub) and then pushing code.

A particularly famous example occurred when an attacker compromised the server hosting the PHP programming language and inserted malicious code into the programming language itself. Although discovered quickly, the code, if not corrected, would have enabled widespread unauthorized access across large swaths of the internet.

Fortunately, recently developed tools like Sigstore and gitsign reduce the probability of this type of attack and the damage if such an attack does occur.

Publishing server compromise

Recently an attacker, potentially the Chinese intelligence services, hacked the servers that distribute the Chinese messaging app MiMi, replacing the normal chat app with a malicious version. The malware allowed the attackers to monitor and control the chat software remotely.

This attack stems from the fact that the software industry has failed to treat critical points in the software supply chain (like publishing servers or build systems) with the same care as production environments and network perimeters.

Open source package repository attacks

From the Python Package Index, which houses Python packages, to npm, the world’s software now literally depends on vast stores of software packages, the open source software programmer’s equivalent of the Apple App Store.

Software supply chain security is broader than SolarWinds and Log4J by Ram Iyer originally published on TechCrunch

Pearpop, a marketplace for social collaborations, announced today that it has raised an extension to its 2021-era Series A funding round. The company has added $18 million to its Series A, bringing its valuation to $300 million. Since its launch in October 2020, Pearpop has raised $34 million in funding.

The new investment includes funding from Ashton Kutcher and Guy Oseary’s Sound Ventures and Alexis Ohanian’s Seven Seven Six. Blockchange Ventures, Avalanche’s Blizzard Fund and C2 Ventures also participated in the round.

Pearpop allows creators and brands to buy collaborations with celebrities like Madonna and creators like Sommer Ray. These celebrities and influencers are able to sell the chance to collaborate with them on TikTok. Or, they can run “challenges” that invite people to use a specific sound on a TikTok for the chance to win cash. Pearpop has attracted numerous brands including Amazon, Netflix, Chipotle, Rakuten, Universal Pictures, Sonos and Beyond Meat, as well as celebrities like Doja Cat, The Weeknd, Madonna, Shawn Mendez and Post Malone.

“We’ve reached a critical mass on the creator side, as we now have more than 200,000 on our platform,” Pearpop CEO and founder Cole Mason told TechCrunch in email. “We’ve paid out over $10 million to creators, and we’ve been proud to see how Pearpop has opened up an opportunity for creators without a massive following: 71% of earnings have gone to creators with under one million followers.”

As for the new funding, Mason says Pearpop will use it to boost hiring, advance the platform’s current functionality, build out sales partnerships and more.

“We’re going to use the funding to accelerate our tech and engineering hiring as our product features and functionality get more advanced and we leverage intelligence and data in new ways our industry hasn’t seen,” Mason said. “Beyond that, we’ll continue to build out a strong sales and partnerships team capable of attracting and partnering with some of the biggest and most iconic brands in the world.”

In addition to the new funding, Pearpop is also announcing that it’s launching two new products called Ovation and Passport.

Ovation builds on Pearpop’s current Challenges product by allowing brands to turn customers into advocates. The product lets brands mobilize targeted audiences that have engaged with a product in the past. Mason says that every brand wants to incentivize their communities to advocate on their behalf, and Ovation makes this possible. On the other hand, customers will be able to monetize their social presence.

Passport uses blockchain technology to give creators visibility into audience engagement across multiple platforms and sources to allow brands to understand creator impact. Mason says Passport reflects Pearpop’s continued belief that data will be central to the growth of the creator economy. The platform aims to continue investing in data to support both brands and creators.

Earlier this year, Pearpop launched Pearproof, a web3 app that allows creators to mint NFTs of their social media posts. Pearproof’s NFTs use a proprietary algorithm that allows the assets to gain value as a post itself garners more social engagement. These NFTs start off at a “vinyl” level on a tier system that Pearproof developed. As it gets more popular, the NFT can “level up” to silver, gold, platinum and other levels. The creator can decide what rewards are associated with these levels. The project leverages the Solana blockchain, which Pearproof chose for its low transaction costs and lesser environmental impact.

Pearpopannounced $16 million in funding in April 2021, which was split between a $6 million funding round co-led by Ashton Kutcher and Guy Oseary’s Sound Ventures and Slow Ventures, with participation from Atelier Ventures and Chapter One Ventures; and a $10 million additional investment led by Alexis Ohanian’s Seven Seven Six with participation from Bessemer.

“We have no shortage of ideas in the roadmap to help Creators earn a living doing what they love,” Mason said. “Our long-term vision is to continue to unlock the value of every social media user on the planet, while setting the standard for collaboration and creator monetization.”

Pearpop raises $18M at a $300M valuation to scale its social collaboration marketplace by Aisha Malik originally published on TechCrunch

Israeli urban trip planning app Moovit unveiled a new feature Tuesday that allows users to follow a transit line’s movements along the map in real time. The new feature, which is in addition to Moovit’s real time arrival countdown, brings a new level of accuracy and certainty to users’ commutes, the company says.

“Live Location offers the ability to see transit lines, displayed on the map as icons, move along the map as they progress (or are delayed) along their journey,” Yovav Meydad, Moovit’s chief growth and marketing officer, told TechCrunch via email. “The feature is accessible from every Moovit screen where the real-time arrival countdown is available via the Action Bar along the bottom of the screen.”

The live location feature is now available for buses, trains, trams, subways, ferries and cable cars — anything with GPS tracking installed — in more than 220 cities across 38 countries, and Moovit says more will follow.

It’s a handy feature, and one that Google Maps added to its own service about four years ago.

Riders who want to see where their line currently is need to tap on the ‘Live Location’ button on the bottom bar of the screen. A map will open and an icon will show up moving along the transit line, allowing Moovit users to stare at their phones in angst, watching the little bus icon inch closer and closer to their stop.

Riders will also be able to see when the tracking data was last updated and receive service alerts for that line, Meydad said, noting that users can view several lines moving on the map at the same time.

“This additional layer of context allows users to have all they need to compare options in real-time to make the best decision for them to easily reach their destination,” said Meydad.

Moovit users can now track transit vehicles on map in real time by Rebecca Bellan originally published on TechCrunch

Lyst, the UK fashion e-commerce site that last year raised funding at a $700 million valuation, is the latest tech startup to rein in spending by cutting staff. TechCrunch has learned that the company is in the process of laying off 25% of its employees, working out to about 50 people, as part of a larger restructuring to conserve cash flow and move to profitability.

The details were first leaked to us by way of an internal memo from the CEO, Emma McFerran, who took over the role of CEO from founder Chris Morton in July of this year. The company then confirmed the details to us. It’s not clear which departments will be most impacted, but the memo notes that some 85 people are being contacted who will be ‘impacted by this exercise.’

We understand from sources that the company had plans for an IPO next year but that these are now being pushed back, and that it might be looking for another round of funding to shore up its finances.

Lyst last raised money in May 2021, when the picture for e-commerce was rosily tinted, one of the ironic bright business spots in the largely otherwise devastating Covid-19 pandemic: fashion retailers in particular were seeing record-breaking revenues and business growth online as consumers turned away from shopping in person and use disposable income that they were no longer spending on going out. That made for buoyant sales, as well as very bullish prognostications: consumer shoppers, observers said, were unlikely to “go back” to physical shopping in the same numbers even after the pandemic subsided.

Lyst was a product of that: when it announced its $85 million raise, it planned for that to be its last fundraise ahead of an IPO, which it was planning potentially for London or New York as soon as this year.

At the time it said it had 150 million users and a catalog of 8 million products from 17,000 brands and retailers. That list of brands includes a number of high-end labels such as Balenciaga, Balmain, Bottega Veneta, Burberry, Fendi, Gucci, Moncler, Off-White, Prada, Saint Laurent and Valentino, and that combined with an active audience of shoppers led the company to strong growth. In 2020, gross merchandise value on Lyst was over $500 million. Between then and 2021, new user numbers grew 1100% and by the time the round was announced GMV was at more than $2 billion.

Fast forward to today, and the most optimistic and bullish prognostications in e-commerce have failed to play out: online sales have not continued with torrid growth, and people generally haven’t been spending as much online as a share of wallet with the return to in-store shopping.

That has led to some business contractions across the board. Amazon, the biggest of all e-commerce operations (which has been working to build out a strong line in fashion) may lay off as much as 10,000 staff and are cutting a lot of product lines. A more direct rival of Lyst’s, the high-end fashion e-commerce poster child Farfetch, currently has a market cap of just $2.9 billion, a giant drop compared to the $14 billion it commanded in May 2021.

Many look to the holiday season as a critical indicator of how well e-commerce companies are doing in the current economy, and this year so far, the figures are actually not as bad as many thought they would be: Adobe’s tracking of sales have shown big days like Black Friday and Cyber Monday both breaking sales records (respectively over $9 billion and over $11 billion).

Lyst itself has been seeing strong sales to kick off holiday shopping, posting its most profitable Black Friday weekend ever, with average order value up 15% — albeit with more discounting across the brands and stores that sell on the site to gin up activity.

But the bigger picture and the longer-term view are the factors driving today’s news. In addition to a focus on getting profitable, our source tells us that Lyst’s IPO was more recently targeted for 2023, but those plans have now been pushed back; and that it’s looking to do a new round of funding partly because it’s low on cash flow. (To be clear, the company would not comment on these facts.)

We’ll update this post as we learn more.

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Lyst, the UK fashion marketplace, is laying off 25% of staff by Ingrid Lunden originally published on TechCrunch