VTEX, an e-commerce platform used by Walmart, raises $140M led by SoftBank’s LatAm fund

E-commerce now accounts for 14% of all retail sales, and its growth has led to a rise in the fortunes of startups that build tools to enable businesses to sell online. In the latest development, a company called VTEX — which originally got its start in Latin America helping companies like Walmart expand their business to new markets with an end-to-end e-commerce service covering things like order and inventory management; front-end customer experience and customer service — has raised $140 million in funding, money that it will be using to continue taking its business deeper into more international markets.

The investment is being led by SoftBank, specifically via its Latin American fund, with participation also from Gávea Investimentos and Constellation Asset Management. Previous investors include Riverwood and Naspers, and Riverwood continues to be a backer, too, the company said.

Mariano Gomide, the CEO who co-founded VTEX with Geraldo Thomaz, said the valuation is not being disclosed, but he confirmed that the founders and founding team continue to hold more than 50% of the company. In addition to Walmart, VTEX customers include Levi’s, Sony, L’Oréal and Motorola . Annually, it processes some $2.4 billion in gross merchandise value across some 2,500 stores, growing 43% per year in the last five years.

VTEX is in that category of tech businesses that has been around for some time — it was founded in 1999 — but has largely been able to operate and grow off its own balance sheet. Before now, it had raised less than $13 million, according to PitchBook data.

This is one of the big rounds to come out of the relatively new SoftBank Innovation Fund, an effort dedicated to investing in tech companies focused on Latin America. The fund was announced earlier this year at $2 billion and has since expanded to $5 billion. Other Latin American companies that SoftBank has backed include online delivery business Rappi, lending platform Creditas, and proptech startup QuintoAndar.

The common theme among many SoftBank investments is a focus on e-commerce in its many forms (whether that’s transactions for loans or to get a pizza delivered) and VTEX is positioned as a platform player that enables a lot of that to happen in the wider marketplace, providing not just the tools to build a front end, but to manage the inventory, ordering and customer relations at the back end.

“VTEX has three attributes that we believe will fuel the company’s success: a strong team culture, a best-in-class product and entrepreneurs with profitability mindset,” said Paulo Passoni, managing investment partner at SoftBank’s Latin America fund, in a statement. “Brands and retailers want reliability and the ability to test their own innovations. VTEX offers both, filling a gap in the market. With VTEX, companies get access to a proven, cloud-native platform with the flexibility to test add-ons in the same data layer.”

Although VTEX has been expanding into markets like the US (where it acquired UniteU earlier this year), the company still makes some 80% of its revenues annually in Latin America, Gomide said in an interview.

There, it has been a key partner to retailers and brands interested in expanding into the region, providing integrations to localise storefronts, a platform to help brands manage customer and marketplace relations, and analytics, competing against the likes of SAP, Oracle, Adobe, and Salesforce (but not, he said in answer to my question, Commercetools, which builds Shopify -style API tools for mid- and large-sized enterprises and itself raised $145 million last month).

E-commerce, as we’ve pointed out before, is a business of economies of scale. Case in point, while VTEX processes some $2.5 billion in transactions annually, it makes a relative small return on that: $69 million, to be exact. This, plus the benefit of analytics on a wider set of big data (another economy of scale play), are two of the big reasons why VTEX is now doubling down on growth in newer markets like Europe and North America. The company now has 122 integrations with localised payment methods.

“At the end of the day, e-commerce software is a combination of knowledge. If you don’t have access to thousands of global cases you can’t imbue the software with knowledge,” Gomide said. “Companies that have been focused on one specific region and now realising that trade is a global thing. China has proven that, so a lot of companies are now coming to us because their existing providers of e-commerce tools can’t ‘do international.'” There are very few companies that can serve that global approach and that is why we are betting on being a global commerce platform, not just one focused on Latin America.”

New York State Attorney General reportedly investigating WeWork

WeWork is reportedly being investigated by the New York State Attorney General. According to Reuters, the NYAG’s questions include if WeWork founder and former CEO Adam Neumann engaged in self-dealing.

A WeWork spokesperson said in an email that “we have received an inquiry from the office of the New York State Attorney General and are cooperating in the matter.” TechCrunch also contacted the New York State Attorney General’s office for comment. WeWork is headquartered in New York City.

This comes less than a week after Bloomberg reported WeWork is the subject of a U.S. Securities and Exchange Commission inquiry into potential rule violations related to its cancelled IPO.

WeWork’s parent company, The We Company, announced on Sept. 30 that it was withdrawing its S-1 filing for an initial public offering, shortly after Neumann stepped down as CEO. In addition to questions about the company’s financial state, red flags for investors included that Neumann had borrowed against his WeWork shares and leased properties he owned back to the company.

An entity Neumann controlled also sold the company the right to use the word “We” for $5.9 million, though he later asked the company to unwind the agreement and returned the money after public criticism.

After receiving a lifeline from investor SoftBank worth up to $8 billion, WeWork is now engaging in major cost-cutting measures, including layoffs at Meetup, which it acquired for $200 million in 2017.

John Legere is stepping down as CEO of T-Mobile, succeeded by deputy Mike Sievert on May 1

He’s reportedly not going to take over WeWork, but John Legere is definitely on his way out of the CEO role at T-Mobile, the carrier that is currently merging with SoftBank-controlled Sprint. Today the carrier and Legere confirmed that Mike Sievert — currently T-Mobile’s COO — will succeed Legere as CEO on May 1 of 2020. Legere will stay on the board.

Neither Legere nor T-Mobile commented on what his next move will be, and specifically if this will pave the way for him to take over the top job at WeWork. There had been reports that Legere — something of a turnaround specialist — was being lined up for the job at the very troubled office-space startup, which had to shelve its IPO earlier this year after showing poor financials amid questionable management that not only led to the departure of its founder Adam Neumann as CEO, but a strong devaluation of the company that resulted in SoftBank, as a major creditor, taking control.

The reports of Legere coming in to fix things at WeWork seemed to get refuted quite swiftly. However, the same “sources” that quashed that story also insisted he had “no plans” to leave T-Mobile. With elements of the report in doubt, that could put the WeWork rumors (or thoughts of other SoftBank roles, for that matter) back on the table. We’ve asked Legere directly and will update this post if he replies.

Legere has been with T-Mobile since 2012, where he used his irreverent personality to directly spar with the industry while at the same time position the carrier — which has long trailed bigger competitors like AT&T and Verizon (which owns us) in size — as a growth story and different from the pack (hence the “un-carrier” marketing strategy). The stock price has over that time gone up, and the carrier is currently valued at around $65 billion. (Notably, the stock is down about 1.5% today on the back of this news.)

Sievert will be tasked with continuing the route that Legere set, T-Mobile said, “demonstrating that T-Mobile will remain a disruptive force in US wireless marketplace to benefit consumers.”

“I hired Mike in 2012 and I have great confidence in him. I have mentored him as he took on increasingly broad responsibilities, and he is absolutely the right choice as T-Mobile’s next CEO,” said Legere in a statement. “Mike is well prepared to lead T-Mobile into the future. He has a deep understanding of where T-Mobile has been and where it needs to go to remain the most innovative company in the industry. I am extremely proud of the culture and enthusiasm we have built around challenging the status quo and our ongoing commitment to putting customers first.”

“The Un-carrier culture, which all our employees live every day, will not change,” Sievert said in a separate statement. “T-Mobile is not just about one individual. Our company is built around an extraordinarily capable management team and thousands of talented, committed, and customer-obsessed employees. Going forward, my mission is to build on T-Mobile’s industry-leading reputation for empowering employees to deliver an outstanding customer experience and to position T-Mobile not only as the leading mobile carrier, but as one of the most admired companies in America.”

Regardless of whether this is a sign that SoftBank indeed has a job lined up for Legere at one of its other portfolio companies, such as WeWork, the changing of the guard makes some sense, since the merger with Sprint would leave a question mark over who would lead the combined business. The two companies were reportedly close to releasing a management line-up for the merged business earlier this year, but that has yet to happen. The merger is due to be completed early next year.

Opera’s Africa fintech startup OPay gains $120M from Chinese investors

Africa focused fintech startup OPay has raised a $120 million Series B round backed by Chinese investors.

Located in Lagos and founded by consumer internet company Opera, OPay will use the funds to scale in Nigeria and expand its payments product to Kenya, Ghana and South Africa — Opera’s CFO Frode Jacobsen confirmed to TechCrunch.

Series B investors included Meituan-Dianping, GaoRong, Source Code Capital, Softbank Asia, BAI, Redpoint, IDG Capital, Sequoia China and GSR Ventures.

OPay’s $120 million round comes after the startup raised $50 million in June.

It also follows Visa’s $200 million investment in Nigerian fintech company Interswitch and a $40 million raise by Lagos based payments startup PalmPay — led by China’s Transsion.

There are a couple quick takeaways. Nigeria has become the epicenter for fintech VC and expansion in Africa. And Chinese investors have made an unmistakable pivot to African tech.

Opera’s activity on the continent represents both trends. The Norway based, Chinese (majority) owned company founded OPay in 2018 on the popularity of its internet search engine.

Opera’s web-browser has ranked No. 2 in usage in Africa, after Chrome, the last four years.

The company has built a hefty suite of internet-based commercial products in Nigeria around OPay’s financial utility. These include motorcycle ride-hail app ORide, OFood delivery service, and OLeads SME marketing and advertising vertical.

“Opay will facilitate the people in Nigeria, Ghana, South Africa, Kenya and other African countries with the best fintech ecosystem. We see ourselves as a key contributor to…helping local businesses…thrive from…digital business models,” Opera CEO and OPay Chairman Yahui Zhou, said in a statement.

Opera CFO Frode Jacobsen shed additional light on how OPay will deploy the $120 million across Opera’s Africa network. OPay looks to capture volume around bill payments and airtime purchases, but not necessarily as priority.  “That’s not something you do ever day. We want to focus our services on things that have high-frequency usage,” said Jacobsen.

Those include transportation services, food services, and other types of daily activities, he explained. Jacobsen also noted OPay will use the $120 million to enter more countries in Africa than those disclosed.

Since its Series A raise, OPay in Nigeria has scaled to 140,000 active agents and $10 million in daily transaction volume, according to company stats.

Beyond standing out as another huge funding round, OPay’s $120 million VC raise has significance for Africa’s tech ecosystem on multiple levels.

It marks 2019 as the year Chinese investors went all in on the continent’s startup scene. OPay, PalmPay, and East African trucking logistics company Lori Systems have raised a combined $240 million from 15 different Chinese actors in a span of months.

OPay’s funding and expansion plans are also harbinger for fierce, cross-border fintech competition in Africa’s digital finance space. Parallel events to watch for include Interswitch’s imminent IPO, e-commerce venture Jumia’s shift to digital finance, and WhatsApp’s likely entry in African payments.

The continent’s 1.2 billion people represent the largest share of the world’s unbanked and underbanked population — which makes fintech Africa’s most promising digital sector. But it’s becoming a notably crowded sector where startup attrition and failure will certainly come into play.

And not to be overlooked is how OPay’s capital raise moves Opera toward becoming a multi-service commercial internet platform in Africa.

This places OPay and its Opera-supported suite of products on a competitive footing with other ride-hail, food delivery and payments startups across the continent. That means inevitable competition between Opera and Africa’s largest multi-service internet company, Jumia.

 

 

 

 

 

SoftBank Vision Fund’s Carolina Brochado is coming to Disrupt Berlin

SoftBank’s Vision Fund has single-handedly changed the game when it comes to tech startup investment. And that’s why I’m excited to announce that SoftBank Vision Fund investment director Carolina Brochado is joining us at TechCrunch Disrupt Berlin.

Carolina Brochado isn’t a newcomer when it comes to VC investment. She’s worked for years at Atomico in London. Originally from Brazil, she first joined Atomico as an intern in 2012 while studying her MBA at Columbia Business School.

After her MBA, she joined an e-commerce startup as head of operations. Unfortunately, that startup is now defunct. But she used that opportunity to join Atomico once again, as a principle. She became a partner at Atomico in 2016 and left the firm late last year.

At SoftBank’s Vision Fund, she focuses on fintech, digital health and marketplace startups. Just to give you an idea, some of her past investments with both Atomico and SoftBank include LendInvest, Gympass, Hinge Health, Ontruck and Rekki.

More generally, given the size of SoftBank’s Vision Fund ($100 billion), it has had a huge impact on the growth trajectory of some companies. I’m personally curious to know SoftBank’s approach as board members, whether they get involved in the strategy of those companies or let the executive teams make decisions on their own.

Buy your ticket to Disrupt Berlin to listen to this discussion and many others. The conference will take place on December 11-12.

In addition to panels and fireside chats, like this one, new startups will participate in the Startup Battlefield to compete for the highly coveted Battlefield Cup.


Carolina focuses on fintech, digital health and marketplaces. Prior to joining Softbank, Carolina was a Partner at Atomico, where she sourced and collaborated with portfolio companies for almost five years. Some of her investments included Lendinvest, Gympass, Hinge Health, Ontruck and Rekki.

Previously Carolina has worked as Head of Ops to a now defunct gifting e-commerce start-up, as an investor at Chicago-based private equity firm Madison Dearborn Partners and within Consumer/Retail Investment Banking at Merrill Lynch in New York.

Carolina has a Bachelor of Science degree in Foreign Service from Georgetown University and an MBA from Columbia Business School. She is originally from Brazil.

Relocating Indonesian capital will impact nation’s startup ecosystem

Recently reelected, Indonesian President Joko Widodo announced a desire to move the nation’s capital from Jakarta to the East Kalimantan region, citing environmental concerns, the most exigent of these being the fact that Jakarta is literally sinking due to the uncontrolled extraction of groundwater. Widodo said he wished to separate Indonesia’s government from its business and economic hub in Jakarta.

However, what would a move from Jakarta do to Indonesia’s burgeoning startup economy?

Shifting administrative governmental hubs

According to Widodo, studies have determined that the best site for the proposed new capital is between North Penajam Paser and Kutai Kertanegara, both located in East Kalimantan. The basis of this selection is due to studies highlighting the region’s relative protection from natural disasters, especially when compared to other regions. This would definitely be a benefit for the governmental heart of Indonesia, ensuring continuous administrative functions in a disaster-prone region. Other governments have separated administrative centers from their economic hubs with varying degrees of success, with some examples being Brazil’s creation of Brasília, as well as Korea’s projected move from Seoul to Sejong.

What is most interesting to note from prior examples is that these newer branched-out cities are non-surprisingly, heavily government-centric. In Brasília, roles tied to the government make up nearly 40% of all jobs, while in Sejong, a lack of facilities like public transit and commercial mall space cause many to commute into Sejong for government work, instead of permanently settling in the area. Given the semi-undeveloped nature of East Kalimantan, these anecdotes are quite troubling if the government is actually moving to North Penajam Paser or Kutai Kertanegara.

These facts raise the question of economic impacts of such governmental moves. In fact, one may even opine that while these moves do allow for governmental growth, ultimately, they may hurt the country economically due to a divestment between both government and economic hubs. In this specific instance, it is most important to analyze the impact of such a move on Indonesia’s startup economy, as the nation is one the world’s leaders in startup growth.

Indonesia’s startup economy

Indonesia has emerged as a startup hub within Southeast Asia in recent years, with its population of over 260 million marking it as the world’s fourth-most populous country. Additionally, Indonesia’s mobile-first population has enabled the full embrace of the internet era, with 95% of all internet users in Indonesia connected to the web via a mobile device.

Similarly, startup growth has boomed in the island archipelago, with several Indonesian-based unicorns disrupting local, regional, and global economies. Softbank-backed ecommerce giant Tokopedia is currently in talks for a pre-IPO funding round, while emerging super-app Gojek controls significant portions of the ride-sharing industry in Asia, simultaneously expanding into separate industries to include digital payments, food delivery, and even video-streaming. Additionally, online travel portal Traveloka (in which Expedia has a minority stake) has recently entered the financial services space, furthering its impact within Asia. These specific examples of high-growth startups demonstrate a population hungry for innovation, further driving the developing startup economy.

China’s Didi to relaunch Hitch carpooling service this month

Chinese ride-hailing firm Didi Chuxing said today it will conduct a trial relaunch of its Hitch carpooling service in seven major Chinese cities with additional safety features by end of the month, more than a year after suspending the service following the murder of a female passenger by her Didi driver.

The relaunch of popular service Hitch, which was started in 2015 and has clocked more than a billion rides, follows a “comprehensive safety review and product revamp,” Didi said Wednesday. The company claimed its system can now identify high-risk scenarios and trip anomalies as well as support effective intervention. There’s also a new in-app Safety Assistant that shows detailed information on drivers and passenger and offers real-time support from safety specialists.

Additionally, during the trial, Hitch service will only allow trips under 50 kilometres (31 miles) in metro areas between 5am and 8pm for female users. Male users can enjoy the service till 11pm. The cities where Hitch will conduct the trial are Beijing, Harbin, Taiyuan, Shijiazhuang, Changzhou, Shenyang, and Nantong.

Didi suspended the carpooling service after the murder of a female passenger in August 2018, a second such incident after another passenger was murdered only a few months prior. At the time, Didi also issued an apology for its “disappointing mistakes.” (Didi’s other carpooling and general offerings were not suspended.)

Chinese transport ministry lambasted Didi for the incidents, saying the firm had “lost control” of its drivers and vehicles. It said there had been multiple lapses in offline management of people and cars, that had resulted in criminal and security cases. Didi said today it had alerted the authority about the trial re-run.

Hitch is a modern take on hitchhiking that lets a passenger ride for free with a driver headed in their direction. Passengers are encouraged to leave a tip to cover petrol, but the idea is to make each car ride more efficient. Didi doesn’t monetize the service, but it is a strategic way to attract passengers and drivers who may use other services that the firm does draw revenue from.

The Chinese firm did not mention last year’s unfortunate incidents today, but noted that Hitch has become a “popular day-to-day commuter ride-sharing among China’s rising middle class.”

“Since then it has also become an important inter-city mobility solution as the country’s sustained urbanization process continues to drive regional integration and mass migration. During China’s 2018 Lunar New Year, 30.7 million Chinese took Hitch for their annual family reunion over the seven-day break,” it said.

Didi, which was valued at $56 billion earlier this year and claims to have amassed over 550 million users globally, hasn’t been able to turn a profit. The relaunch of carpooling service could put the company, which has been backed by SoftBank and Uber, on the right track.

WeWork-owned Meetup confirms restructuring, layoffs

WeWork’s efforts to cut costs following the ouster of its chief executive officer and a delayed initial public offering looks to be impacting its subsidiaries. Meetup, which WeWork acquired for a reported $200 million in 2017, announced a round of layoffs this morning, TechCrunch has learned.

The company, which helps people foster in-person connections by facilitating events across the globe, has shed as much as 25% of its workforce, most of which were employees of the company’s engineering department, sources tell TechCrunch.

Meetup’s top priority is building the best possible product for our community of more than 44 million members around the world,” a representative of the company said in a statement provided to TechCrunch. “Today we made some organizational changes with that goal in mind, including restructuring across some of our departments.”

The news follows WeWork’s own well-documented attempts at restructuring its high-loss business. Late last month, SoftBank provided the over-valued co-working business a much-needed lifeline in the form of a $5 billion loan, a $3 billion tender offer and another $1.5 billion in equity funding, according to The Wall Street Journal. That’s in addition to the billions already invested by the Japanese telecom giant, which now owns a roughly 80% stake. SoftBank’s mountain of cash had previously valued WeWork at an eye-popping $47 billion; the latest investment package, however, valued the company at just $8 billion. 

Understandably, WeWork’s new leadership (former vice chairman Sebastian Gunningham and former president and chief operating officer Artie Minson are serving as co-CEOs) seem to be hyper-focused on its new cost-cutting strategy. Multiple reports have indicated the business is weighing sales of several of its subsidiaries, including Meetup, Managed by Q and Conductor. We’ve asked Meetup whether its parent company enforced the staff cuts and will update this story if we hear back.

As for WeWork, it must make a concerted effort to boost its balance sheet in the next few months if it plans to stay committed to a 2020 IPO. The company initially revealed its IPO prospectus in August, disclosing revenue north of $1.5 billion in the six months ending June 30 on losses of $904.6 million. Shortly after, its co-founder and former CEO Adam Neumann’s misbehaviors were published in a number of incriminating stories by The Wall Street Journal and other outlets. Neumann’s trashed reputation coupled with WeWork’s mounting losses forced the company to replace its founding CEO and shelve its IPO, which would have been the second-largest offering of 2019 behind only Uber.

Meetup, founded in 2002, was one of the first IRL social networks. Today’s cuts are not the first since WeWork came into the picture, according to earlier reporting by Gizmodo. Meetup shed roughly 10% of its staff amid negotiations for the acquisition and underwent cultural changes as managers pushed for growth and “more aggressiveness in the workplace.”

The future of Meetup is unclear. WeWork may move forward with a sale of the business or pressure its own cost-cutting measures on the company. In a recent email to Meetup members, CEO David Siegel wrote that he appreciated the recent outpouring of support from the community, as it became apparent the company was in a precarious position because of its owner.

“As you may be aware, there has been significant news about our parent company, WeWork, and what this means for the future of Meetup,” Siegel wrote. “As Meetup’s CEO, I want to personally tell you we’re as committed as ever to bringing people together in person. 

Startups Weekly: Understanding Uber’s latest fintech play

Hello and welcome back to Startups Weekly, a weekend newsletter that dives into the week’s noteworthy startups and venture capital news. Before I jump into today’s topic, let’s catch up a bit. Last week, I wrote about how SoftBank is screwing up. Before that, I noted All Raise’s expansion, Uber the TV show and the unicorn from down under.

Remember, you can send me tips, suggestions and feedback to [email protected] or on Twitter @KateClarkTweets. If you don’t subscribe to Startups Weekly yet, you can do that here.


Uber Head of Payments Peter Hazlehurst addresses the audience during an Uber products launch event in San Francisco, California, on September 26, 2019. (Photo by Philip Pacheco / AFP) (Photo credit should read PHILIP PACHECO/AFP/Getty Images)

The sheer number of startup players moving into banking services is staggering,” writes my Crunchbase News friends in a piece titled “Why Is Every Startup A Bank These Days.”

I’ve been asking myself the same question this year, as financial services business like Brex, Chime, Robinhood, Wealthfront, Betterment and more raise big rounds to build upstart digital banks. North of $13 billion venture capital dollars have been invested in U.S. fintech companies so far in 2019, up from $12 billion invested in 2018.

This week, one of the largest companies to ever emerge from the Silicon Valley tech ecosystem, Uber, introduced its team focused on developing new financial products and technologies. In a vacuum, a multibillion-dollar public company with more than 22,000 employees launching one new team is not big news. Considering investment and innovation in fintech this year, Uber’s now well-documented struggles to reach profitability and the company’s hiring efforts in New York, a hotbed for financial aficionados, the “Uber Money” team could indicate much larger fintech ambitions for the ride-hailing giant.

As it stands, the Uber Money team will be focused on developing real-time earnings for drivers accessed through the Uber debit account and debit card, which will itself see new features, like 3% or more cash back on gas. Uber Wallet, a digital wallet where drivers can more easily track their earnings, will launch in the coming weeks too, writes Peter Hazlehurst, the head of Uber Money.

This is hardly Uber’s first major foray into financial services. The company’s greatest feature has always been its frictionless payments capabilities that encourage riders and eaters to make purchases without thinking. Uber’s even launched its own consumer credit card to get riders cash back on rides. It’s no secret the company has larger goals in the fintech sphere, and with 100 million “monthly active platform consumers” via Uber, Uber Eats and more, a dedicated path toward new and better financial products may not only lead to happier, more loyal drivers but a company that’s actually, one day, able to post a profit.


VC deals


Meet me in Berlin

The TechCrunch team is heading to Berlin again this year for our annual event, TechCrunch Disrupt Berlin, which brings together entrepreneurs and investors from across the globe. We announced the agenda this week, with leading founders including Away’s Jen Rubio and UiPath’s Daniel Dines. Take a look at the full agenda.

I will be there to interview a bunch of venture capitalists, who will give tips on how to raise your first euros. Buy tickets to the event here.


Listen to Equity

This week on Equity, I was in studio while Alex was remote. We talked about a number of companies and deals, including a new startup taking on Slack, Wag’s woes and a small upstart disrupting the $8 billion nail services industry. Listen to the episode here.

Equity drops every Friday at 6:00 am PT, so subscribe to us on iTunesOvercast and all the casts.

Sam Altman’s bet against Slack

Hello and welcome back to Equity, TechCrunch’s venture capital-focused podcast, where we unpack the numbers behind the headlines.

This week Kate and Alex broke the discussion into two main themes. The first dealt with early-stage companies, and the second, as you can imagine, later-stage affairs. Don’t worry, we don’t get to SoftBank for quite some time.

Up top, we dug into Kate’s story about Quill, a formerly stealthy company that could be taking on Slack. That or something similar to Slack . Next, we turned to ManiMe, a startup in the beauty space that raised a smaller $2.6 million round to take on a market that is valued in the billions.

After that it was time to leave the auspices of the early-stage market and move to, of all things, a public company. Grubhub reported earnings this week. It went poorly. Alex wanted to riff over the company’s earnings report and what it could mean for startups that are competing with Grubhub, a leader in the food delivery space that DoorDash and Postmates would prefer to lead themselves.

What impact Grubhub may have on the highly valued on-demand companies isn’t clear yet, but will be pretty damn interesting to see when it does land.

Sticking to the later-stage markets, Alex dug into the problems at Wag, which is struggling and looking for a sale despite raising a castle of cash from the Vision Fund. Kate followed that up with notes on problems at Katerra. The Information is reporting this week that the business is going through a number of layoffs, and we’re wondering if it will suffer the same fate of some of SoftBank’s other investments.

And, finally, the changing face of things at SoftBank itself. The great money spigot is slowly cutting flow. How many unicorns that will strand isn’t yet clear. But surely it can’t be zero.

Equity drops every Friday at 6:00 am PT, so subscribe to us on Apple PodcastsOvercastSpotify and all the casts.