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Hello and welcome back to Equity, a podcast about the business of startups, where we unpack the numbers and nuance behind the headlines.

This is our Wednesday show, where we niche down to a single person, think about their work and unpack the rest. This week, Natasha interviewed Roger Lee, an entrepreneur who’s spent the better part of a decade building tools for employees and employers alike. Lee is the creator of Layoffs.FYI and co-founder of Comprehensive and Human Interest.

Here’s what we got into:

Roger’s introduction to entrepreneurship during the dot-com bubble
How the pandemic de-stigmatized layoffs
How Comprehensive – described as the inverse of Layoffs.FYI – is helping employees level-up
The importance of crowdsourcing and to monetize, or not to monetize…transparency
We ended, as usual, with a lightning round and learned where Lee’s career could have gone if he didn’t take the founder path (hint: it’s not VC).

Equity drops at 10:00 a.m. PT every Monday and at 7:00 a.m. PT on Wednesdays and Fridays, so subscribe to us onApple Podcasts, Overcast, Spotify andall the casts. TechCrunch also has agreat show on crypto, ashow that interviews founders, one thatdetails how our stories come together, and more!

What’s next for the entrepreneur behind Layoffs.FYI by Theresa Loconsolo originally published on TechCrunch

Sophos is laying off about 10% of its global workforce, TechCrunch has learned. Sophos confirmed the layoffs in an email to TechCrunch.

“Sophos today announced an internal restructuring which has resulted in job losses and the start of consultation periods that potentially will affect 10% of our global employee base,” said Jitendra Bulani, a spokesperson for Sophos. The company said the layoffs were to ensure the company achieves “the optimal balance of growth and profitability,” amid the ongoing and deepening economic global slowdown.

TechCrunch learned that about 450 people were let go during this round of layoffs, though Sophos would not confirm the exact number of affected employees. TechCrunch first learned of the layoffs after hearing of several employees in India who were let go. Some affected employees in the country were informed on Tuesday and asked to submit their resignations.

“Sophos is taking these steps for two main reasons: first, to ensure that we achieve the optimal balance of growth and profitability to support Sophos’ long-term success, which is particularly important in the midst of a challenging and uncertain macro environment; and second, to allocate our investments across the company to support our strategic imperative to be a market leader in delivering cybersecurity as a service.”

Sophos told TechCrunch that the layoffs may affect all job roles, but declined to provide further details.

Sophos said the plan to cut jobs was to focus more on cybersecurity services, specifically on “managed detection and response.” This is to achieve its goal of becoming a top player in the global cybersecurity market, the spokesperson said.

More than half a million organizations worldwide use Sophos’ technologies, including endpoint detection and network, email, and cloud security, which generate over $1 billion in revenue, the firm said. Sophos said its managed services business generates over $175 million annually and is growing at over 50% per year.

In March 2020, private equity firm Thoma Bravo acquired Sophos in a $3.9 billion deal.

“We are grateful for the contributions of all our team members, past and present, in building Sophos into a cybersecurity leader, and in helping to keep the world safe from the evils of cybercrime,” the spokesperson said.

Sophos is joining a growing list of technology companies that have had to lay off their workforce due to financial difficulties. Tech giants including Amazon, Meta, and Microsoft have also had to let go of thousands of employees in recent months.

Sophos to lay off 450 employees globally by Jagmeet Singh originally published on TechCrunch

Boston Dynamics just released the latest demo of its humanoid robot, Atlas. The robot could already run and jump over complex terrain thanks to its feet. Now, the robot has hands, per se. These rudimentary grippers gives the robot new life. Suddenly, instead of being an agile pack mule, the Atlas becomes something closer to a human with the ability to pick up and drop off anything it can grab independently.

The claw-like gripper is made up of one fixed finger and one moving finger. Boston Dynamics says the grippers were designed for heavy lifting tasks and were first demonstrated in a Super Bowl commercial where Atlas held a keg over its head.

The videos released today show the grippers picking up construction lumber and a nylon tool bag. Next, the Atlas picks up a 2×8 and places it between two boxes to form a bridge. The Atlas then picks up a bag of tools and dashes over the bridge and through construction scaffolding. But the tool bag needs to go to the second level of the structure — something the Atlas apparently realized and quickly throws the bag a considerable distance. Boston Dynamics describes this final maneuver: “Atlas’ concluding move, an inverted 540-degree, multi-axis flip, adds asymmetry to the robot’s movement making it a much more difficult skill than previously performed parkour.”

Boston Dynamic’s Atlas is a research platform, and not available for purchase. It’s long been the star of many viral videos, and has effectively demonstrated Boston Dynamic’s robotic capabilities. In the small world of humanoid robotics, few competitors have shown similar capabilities of the Atlas. Only NASA’s Robonaut offers similar hand-like grippers.

Boston Dynamics’ latest Atlas video demos a robot that run, jump, and now, grab and throw things by Matt Burns originally published on TechCrunch

TikTok today announced it’s expanding its “state-controlled media” label to over 40 more global markets, to alert users when videos they’re seeing on the app are being published by entities whose “editorial output or decision-making process” is subject to influence by a government, the company said on Wednesday. The pilot initially began last year after Russia’s invasion of Ukraine by labeling state-controlled media in Russia, Ukraine, and Belarus. When tapped, the label provides the user with more information about what the label means and why it’s being applied.

Since its launch, accounts run by Russian media organizations like RT, Ruptly, Sputnik, RIA Novosti, TASS and dozens of others have had the label added to their videos.

The Beijing-based video entertainment app is not being progressive with this implementation of the state-controlled media label. If anything, it’s delayed. TikTok’s peers have offered a similar system for labeling state-run media for years. For instance, YouTube in 2018 said it would begin to label state-funded broadcasters, and last year blocked Russian state-run channels from monetizing through ad dollars alongside Facebook. Meta had also been labeling state-controlled media since 2020 across its platform. And, prior to Elon Musk’s takeover, Twitter’s policy since 2020 had also been to label state-owned media. (Recently, Musk has been making jokes about the label, so it’s unclear if the policy will shift.)

In TikTok’s case, the company says it evaluates the editorial independence of an operation by considering its mission statement, editorial practices and safeguards, leadership and editorial governance, and its actual editorial decisions. It also offers an appeals process if an entity feels they’ve been unfairly labeled by its trust and safety team.

The company said it has worked with a variety of experts ahead of its pilot program, including consultations with over 60 media experts, political scientists, academics, and members from various international organizations and civil society groups worldwide.

TikTok’s handling of misinformation around Russia’s invasion of Ukraine hasn’t been fully effective, however.

The company in March said it would cut off new content originally in Russia in response to the country’s new “fake news” law about the invasion, but continued to allow several prominent Russian state media accounts to post.

And it wasn’t until now that the label is reaching high-profile markets, like the U.S. Canada, parts of Europe, China and others.

TikTok confirmed to TechCrunch the label will roll out now to the following countries:

Afghanistan, Armenia, Austria, Azerbaijan, Belgium, Bulgaria, Canada, China, Croatia, Czech Republic, Denmark, Estonia, Finland, France, Georgia, Germany, Greece, Hungary, Ireland, Italy, Japan, Kazakhstan, Kyrgyzstan, Latvia, Lithuania, Luxembourg, Malta, Mongolia, Netherlands, Poland, Portugal, Republic of Cyprus, Republic of Moldova, Romania, Slovakia, Slovenia, Spain, Sweden, Tajikistan, Turkmenistan, United Kingdom, United States, Uzbekistan.

The expansion comes amid a renewed crackdown on the short-form video app in the U.S., which former President Donald Trump had originally tried to ban in 2020 due to national security threats, only to have the ban stopped by the courts and later, the Biden administration.

But in recent weeks, a number of U.S. states and the U.S. House have now banned TikTok from government-issued devices, over mounting security concerns that TikTok shares data with the Chinese government. Forbes also accused the company of spying on its journalists and, last year, BuzzFeed, reported TikTok staff in China was accessing U.S. user data, leading TikTok to move the data to Oracle servers in the U.S.

TikTok rolls out its ‘state-controlled media’ label to 40 more countries by Sarah Perez originally published on TechCrunch

Here’s another edition of “Dear Sophie,” the advice column that answers immigration-related questions about working at technology companies.

“Your questions are vital to the spread of knowledge that allows people all over the world to rise above borders and pursue their dreams,” says Sophie Alcorn, a Silicon Valley immigration attorney. “Whether you’re in people ops, a founder or seeking a job in Silicon Valley, I would love to answer your questions in my next column.”

TechCrunch+ members receive access to weekly “Dear Sophie” columns; use promo code ALCORN to purchase a one- or two-year subscription for 50% off.

Dear Sophie,

I’m a co-founder of a very early-stage startup. My co-founder and I are considering bringing on a third co-founder, who was recently laid off. She is currently in the United States on an H-1B with a grace period that will expire soon.

What are the fastest, least risky immigration options that we should consider? What’s going on with potential increases to USCIS filing fees?

— Careful Co-Founder

Dear Careful,

It’s wonderful to hear that you’re expanding your team and supporting your prospective co-founder.

This is the right time to hire international talent, since filing fees for most work visas and green cards will likely increase later this year. The U.S. Department of Homeland Security, which oversees U.S. Citizenship and Immigration Services (USCIS), earlier this month issued a proposal that would substantially increase fees for many non-immigrant visas, and would slow the premium processing time from 15 calendar days to 15 business days (roughly three calendar weeks), among other changes.

For instance, the filing fee for an H-1B application (new, renewal, or transfer) will increase from $460 to $780. DHS is accepting public comments on this proposal until March 6, 2023, and I urge you and other employers, particularly early-stage startups, to weigh in on these changes.

First, buy time

Before I dive into your first question, I highly recommend talking with an immigration attorney ASAP about your prospective hire’s situation and timing. An immigration attorney can suggest strategies tailored to your startup and aimed at mitigating risks. Calculating the grace period after a layoff can be tricky, as it involves a lot of factors, and you want to ensure that your co-founder maintains valid status in the U.S. and has the proper authorization for any required international travel.

Since your prospective co-founder’s 60-day grace period is ending soon, she can get additional time quickly by applying online for a change of status from H-1B to B-1 business visitor status, which will enable her to request to stay in the U.S. for another six months. It will also give you time to prepare an H-1B transfer filing and seek to change her status back to an H-1B or another work visa.

Remember that the B-1 status is not a work visa and does not grant work authorization, which means she will not be authorized to be employed by your startup. However, she can do a few things that immigration officials do not consider as work, such as:

Attend business meetings or consultations;
Attend a convention or conference;
Negotiate contracts.

Dear Sophie: What are some fast options for hiring someone on an expiring grace period? by Ram Iyer originally published on TechCrunch

Deal Box, a capital markets advisory and token offering packaging platform, has launched its venture arm with plans to invest $125 million in startups using web3 technology, the company shared Wednesday.

“We believe in the transformative power of web3, and we plan to invest in both web3 startups and companies that use web3 technology, including blockchain, to impact and reshape people’s everyday lives,” Thomas Carter, CEO of Deal Box, said to TechCrunch.

Deal Box was founded in 2005 and has more than $200 million in total deal flow with over 500 packaged clients, according to its website. It has partnered with investing- and digital asset-focused businesses like Tezos, Vertalo, tZERO, Texture Capital, Fundopolis and Resolute Capital Partners, to name a few.

The venture arm, Deal Box Ventures, will focus on startups across five fund areas: emerging growth, real estate, fintech, social impact and what it calls “FunTech,” which will look at “action sports, innovative leisure and experiential consumer products changing the way we rest and play,” the company stated.

“On the FunTech side, we know that football, soccer and basketball teams have emerged as behemoths in terms of team valuations,” Carter said. “There’s a lot of consolidation opportunities in action sports and the potential is quite large. It’s an extraordinary moment for these action sports categories as they become institutionalized and more recognized.”

For the fintech category, AI and blockchain will be the quickest path to enterprise value creation, Carter added.

Each fund totals $25 million, and the sum across the five funds is $125 million, Carter said. “This will be an achievable target to raise per fund, and we will have larger funds launching after.” This amount is “the best foundation for achieving the results we want to achieve over the next three to five years,” Carter added.

Deal Box has taken strategic institutional funds from family offices and high net worth and ultra-high net worth individuals, Carter shared. There has also been interest from institutional investors, other family offices and sovereign wealth funds, Carter added. “So far, we’ve brought in just under $5 million and have circled close to $40 million.”

The firm has closed initial strategic investments in three startups — Total Network Services, Rypplzz and Forward-Edge AI — as part of its web3 investment thesis.

The resilience of the web3 companies that can survive the recent downturn should be an indicator of them “doing something with significance that meets a real need in the market and hopefully good decision-making,” Carter said. Many projects in the web3 space were speculative, but Deal Box hopes to show investors and founders alike that blockchain and web3 technology can be used while “still playing within the boundaries” of the U.S. Securities and Exchange Commission.

“There’s never been a time for technology to make a bigger impact on innovation and people’s everyday lives,” Carter said. “This is the beginning of a new wave. We’re witnessing the rise of the fourth industrial revolution.”

Deal Box’s venture arm to invest $125M in startups using web3 technology by Jacquelyn Melinek originally published on TechCrunch

Commerce has gone through quite a change over the past three years. First was the quick shift to online during the pandemic, then came the reckoning after people began venturing out again.

During this time, commerce companies, both brick-and-mortar and online, were looking to technology to get their companies up-and-running, but were finding it a bit tough with the absence of a big developer team to manage deployment.

Bryan Mahoney and Henry Davis, both former Glossier executives, saw the writing on the wall in 2020 and started Arfa, which is now Chord, a platform as a service, to provide commerce infrastructure software that gives brands and startups sophisticated technology and data without the requirement of a huge technology team. We profiled the company in 2021 when it raised an $18 million Series A round.

They found that not all commerce companies were ready, willing and able to invest in technology. However, as spending in places like Facebook and Google became more expensive and it was harder to acquire customers, companies started to see how data and technology could work in their favor.

“Companies are realizing they don’t have to be technology companies,” CEO Mahoney told TechCrunch. “We talk an awful lot in the industry about headwinds, and those headwinds to some extent are accelerants pushing these brands a little bit closer to the core, but making them realize that the solutions they’ve had, or the reluctance to spend on technology, is not going to work.”

Chord has 21 customers signed onto its platform, including Blue Bottle Coffee, Caraway, Loverboy and Joopiter. Meanwhile, Mahoney said December was the company’s busiest month so far, and year over year revenue growth was an increase of 360%.

For the past 18 months many of the customers were asking to see how their data could be used in more predictive capabilities. To do that, Chord is back with a $15 million Series A extension co-led by new investor Bright Pixel Capital and existing investor Eclipse. New investors in the round include GC1 Ventures, TechNexus Venture Collaborative and Anti Fund VC joining existing investors Imaginary Ventures, Foundation Capital and White Star Capital.

The new funding enabled Chord to build on its leadership team to add former Mailchimp chief data science officer David Dewey as new chief technology officer; Susie Korb as vice president of finance, a similar role she held at Toast; and Jamie Deveney, vice president of data, who was previously in the same role at Imperfect Foods.

In addition, Mahoney intends to deploy the new funds into data capability expansion, marketing, product development to support larger customers and its machine learning-powered data infrastructure that provides brands with a look at how key customer metrics will change over time.

In total, Chord raised $33 million. Mahoney did not disclose the company’s valuation, but did say “it’s in line with current multiples in the market.”

Technically the company should have looked at raising a classic Series B, but Chord wasn’t quite there yet, Mahoney admits. Proving that sometimes the grass isn’t always greener on the other side, he explained that the company’s initial investment came with a big valuation, which put pressure on the company to grow into it, even with no customers and no revenue at the time.

When Mahoney and Davis reached out to investors last summer, they took that past pressure into account, and as they spoke with investors, realized that they were actually in between a Series A and B, but didn’t want to push themselves in another “grow into the valuation” situation.

“We said let’s be really honest about what is going on in the market, and let’s be honest about where we are,” Mahoney said. “We are still a Series A company, but having really good traction is the time to get the fundraising going regardless of how we finally reach out to the investors.”

Chord connects new funding to predictive commerce metrics so brands can grow by Christine Hall originally published on TechCrunch

Goldenset Collective is launching out of stealth with a $10 million seed round to deploy equity investments in digital creators. The company was founded by Rob Fishman, Darren Lachtman and Nick Millman, the trio who previously founded Niche, a brand partnership marketplace acquired by Twitter for over $50 million, and then Brat, a Gen Z entertainment network.

“For most creators, really the only option for financing is debt, and I think it’s pretty scary to get debt as an individual,” said Lachtman. “So that’s the idea for Goldenset. We’re not attaching any debt to creators, we actually want to just provide them with financing and services that help them actually grow their businesses.”

So far, the company has deployed $1 million in capital to seven creators, including Audrey Hope, Christopher Sturniolo, Paige Taylor and Jeff Ma. TechCrunch viewed a sample agreement between Goldenset and a creator, with the numbers redacted.

According to the sample contract, Goldenset invests a sum of money into a creator’s business in exchange for a certain percentage of their revenue — this encompasses brand deals and on-platform monetization, but not a creator’s day job or freelance income if that’s separate from their social media channels.

The creator won’t have to start paying out their revenue share for a year, unless if they surpass a certain gross revenue threshold first. Then, the creator starts paying a different percentage of revenue until they reach certain milestones based on the proportion of the investment that they’ve paid back.

The contract has three termination options. In one scenario, the creator can back out of the investment during the first six months, so long as they return the capital. Or, when Goldenset has received a certain return on their investment, the creator can terminate the revenue share. In the final case, the agreement terminates by default after a certain period of time, so long as Goldenset has recouped a set amount of the investment.

Like any equity investment, there are pros and cons for the creator. An infusion of startup capital can accelerate business growth, but if the creator can’t make as much income as expected, they could be locked into this deal with Goldenset indefinitely. However, there’s no scenario in which the creator is on the hook for debt to Goldenset.

As part of their deal with Goldenset, creators get free access to LLC and corporate formation, two years of accounting and tax advisory services, payroll services, legal support, PR support and business strategy consulting.

“We believe creators are not merely ‘influencers’ to be rented like billboards by other companies and brands, but are founders of high-growth start-ups with Fortune 500 potential,” the company’s website reads.

Other companies like Spotterand Creative Juice have experimented with the idea of investing in creators. In the case of Spotter, which raised $200 million last year, the company will pay creators a sum of money in exchange for all of the ad revenue from their YouTube back catalog for a set period of time. Like Goldenset, neither Spotter nor Creative Juice require creators to take on debt.

“I don’t think anyone is doing actual true equity investments into these creators the way we are,” Millman told TechCrunch. But Goldenset’s approach doesn’t resemble that of a traditional VC firm.

“We’re not trying to do the venture model, which is like, you bet on 10 people and one of them needs to work and get 100x,” Lachtman said. “We’re pretty confident that most of these creators will continue to have a pretty established career. If they outgrow us and we can get out of our deals with just a couple X return, then we’re super happy with that too.”

Goldenset’s $10 million seed round is led by A.Capital and Lerer Hippeau with participation from Kevin Durant’s firm, 35 Ventures, among others.

Goldenset launches out of stealth to make equity investments in creators by Amanda Silberling originally published on TechCrunch

A U.S.-based subsidiary of oil company Shell is buying EV charging network operator Volta in an all-cash transaction valued at $169 million.

Under the terms of the merger agreement, Shell USA Inc. will acquire all outstanding shares of Class A common stock of Volta at $0.86 per share in cash upon completion of the merger. That represents about an 18% premium to the closing price of Volta stock on January 17, 2023. Volta shares, which have been trading under $1 since November, rose 0.73% following the announcement.

Volta, which went public in 2021 via a merger with a special purpose acquisition company, has an advertising-based business model. The company places its chargers at shopping malls and grocery stores, where EV drivers can power up their batteries for free. The chargers have large media displays, a space where retailers and consumer goods companies can advertise to reach the EV audience.

The company caught the attention of investors early in its life, raising more than $200 million before it took the SPAC route. But the company’s stock price has languished and its cash position is depleted. That lack of cash is tenuous enough that under acquisition agreement, the Shell affiliate will provide loans to Volta to help the company through the closing. The transaction is expected to close in the first half of 2023.

“Volta’s ability to capture it independently, in challenging market conditions and with ongoing capital constraints, was limited. This transaction creates value for our shareholders and provides our exceptional employees and other stakeholders a clear path forward,” Interim CEO Vince Cubbage said in a statement.

The deal, which was unanimously approved by Volta’s board, is the latest example of energy companies snapping up or investing in EV charging infrastructure as demand for electric vehicles grows. BP, Total and France’s EDF are among a growing list of oil companies buying up EV charging assets.

Shell previously bought European charging network ubitricity.

Shell snaps up EV charging operator Volta for $169 million by Kirsten Korosec originally published on TechCrunch

Apple has resurrected the larger HomePod with a second-generation version that includes better sound, as well as better intelligence and computing smarts. The new HomePod retails for $299 and pre-orders kick off today, with in-store availability and shipping beginning in the U.S. and select other markets on Friday, February 3.

Apple’s new HomePod includes two color options – a white version as wells “Midnight,” a color they’ve favored over a standard black option on most recent product releases, including the M2 MacBook Air. We have yet to see this on the HomePod in person, but if other examples from Apple are any indication, it’s a very dark blue that basically resembles black in most viewing conditions.

This new HomePod is wrapped in an “acoustically transparent mesh fabric,” and also includes support for Siri voice control as well as Apple’s own Spatial Audio technology for immersive sound reproduction. Users can also now create Siri smart home automations entirely on the HomePod using just their voice.

Inside, the HomePod is powered by the S7 chip – the same processor found in the Apple Watch Series 7. That should give it a big performance upgrade over the OG HomePod, which contained an Apple A8, the chip that powered the last iPod touch as well as the iPad mini 4 and iPhone 6.

The HomePod includes room-sensing technology to adapt its sound profile depending on its surroundings, and it can also be stereo-paired with another HomePod for improved sound. You can use them with an Apple TV 4K and eARC for sound system integration, and you can also use them as intercoms throughout the house if you have more than one.

Apple also notes that the updated HomePod includes Matter support and can act as a home hub for Apple’s HomeKit smart home system.

Apple introduces a brand new HomePod with better sound and smarts by Darrell Etherington originally published on TechCrunch