Pi Day wasn’t pleasant for a lot of tech execs

Pi Day is apparently New Job day for tech execs and VCs these days.

Leaving: Lee Fixel

It’s not every day that one of the top VC investors heads out from their shop. TechCrunch’s @cookie aka Connie Loizos has the story:

Lee Fixel, the low-flying head of Tiger Global’s private equity business, is leaving at the end of June, the firm announced today in a letter sent to clients and seen by Reuters . Scott Shleifer and Chase Coleman will continue as co-managers of the portfolios Fixel has overseen, with Shleifer taking over as its head, according to the letter.

Fixel, 39, is reportedly planning to invest his own money and “may start an investment firm in the future,” Tiger Global wrote in the letter.

Tiger Global has become a major force in late-stage investing. As I wrote last fall, it is also part of a small coterie of investment firms which have pushed their portfolio companies to IPO with reasonable speed (the other firm I noted at the time was Benchmark).

One challenge for Tiger has been the rise of the SoftBank Vision Fund, which has driven up valuations for startups and has almost certainly complicated the return profile of many of Tiger’s investments. The two also share a penchant for investing internationally, where Tiger had almost a monopoly position before the Vision Fund burst on the scene.

Another wrinkle worth tracking is the increasing opposition of Indian founders to both Tiger (and specifically Fixel) and SoftBank. As I wrote in the newsletter just a few weeks ago:

There is a clear lack of trust between India’s startup and venture communities, which ultimately threatens the sustainability and growth outlook of the country’s tech sector.

But a solution to the problem is not so cut and dry. Mega growth funds like SoftBank and Tiger Global have given limited control to their Indian portfolio companies and have forced their hands on numerous occasions. Yet Ola’s avoidance of SoftBank has led to lower valuations and more difficult and lengthier fundraising processes.

Leaving: Chris Cox & Chris Daniels

Facebook’s chief product officer is leaving along with Chris Daniels, the VP of WhatsApp. TechCrunch’s Josh Constine summarized the situation:

The changes solidify that Facebook is entering a new era as it chases the trend of feed sharing giving way to private communication. Cox and Daniels may feel they’ve done their part advancing Facebook’s product, and that the company needs renewed energy as it shifts from a relentless growth focus to keeping its users loyal while learning to monetize a new from of social networking.

There has been much ink spilled here about what this all means strategically, but I do think that there are no good times for prominent 13-year and 8-year veterans to leave their positions. Zuckerberg seems ready to begin a whole new era for Facebook, and perhaps neither wanted to make the multi-year commitment that his new vision entails.

That, or Cox unplugged the servers yesterday.

Leaving (America): Jay Jorgensen

A very rare move from the United States to Korea for a senior exec, from TechCrunch’s Catherine Shu:

Coupang, the unicorn that is defining e-commerce in Korea, announced today that it has hired Jay Jorgensen, Walmart’s former global chief ethics and compliance officer, to serve as its general counsel and chief compliance officer. Jorgensen will relocate to Seoul for the position.

Founded in 2010, with a total of $3.4 billion raised from investors, including SoftBank, and a valuation of $9 billion, Coupang currently operates only in Korea, where it is the largest e-commerce player, but has offices in Seoul, Beijing, Los Angeles, Mountain View, Seattle and Shanghai.

Coupang has been the outlier success of the Korean startup ecosystem for the past few years. The company’s founder, Bom Kim, who holds a bachelor’s and an MBA from Harvard, has worked to apply American management models to Coupang, attempting to eschew the insular culture typical of Korea’s technology companies. Clearly, that vision is drawing international talent.

Staying: Zachary Kirkhorn

Tesla is getting some financial help from itself, from TechCrunch’s Kirsten Korosec:

The automaker officially tapped as its next chief financial officer Zachary Kirkhorn, a longtime employee who has been part of the automaker’s finance team for nine years, according to securities filings posted Thursday. The automaker also appointed Vaibhav Taneja, who led the integration of Tesla and SolarCity’s accounting teams, as its chief accounting officer. Taneja, who will report to Kirkhorn, will oversee corporate financial reporting, global accounting functions and personnel.

No telling whether Kirkhorn knows how to blow a whistle though….

No Longer Admitted: Bill McGlashan

Sometimes when you venture to make an investment, it doesn’t always pan out, from Maggie Fitzgerald at CNBC:

TPG’s Bill McGlashan was fired from the private equity firm on Thursday amid the massive college cheating scandal.

McGlashan, 55, has been terminated for cause from his positions with TPG and Rise effective immediately.

“After reviewing the allegations of personal misconduct in the criminal complaint, we believe the behavior described to be inexcusable and antithetical to the values of our entire organization,” said a TPG spokesperson.

McGlashan founded TPG Growth, which has had a litany of successes investing in later-stage startups such as Airbnb.

Leaving (but not by choice): Bird employees

Once high-flying and now somewhat not as high-flying scooter startup Bird announced that it was laying off around 40 employees. From TechCrunch’s Megan Rose Dickey:

“As we establish local service centers and deeper roots in cities where we provide service, we have shifting geographic workforce needs,” a Bird spokesperson told TechCrunch. “We are expanding our employee bases in locations that match our growing operations around the world, while developing an efficient operating structure at our Santa Monica headquarters. The recent events are a reflection of shifting geographical needs and our annual talent review process.”

I hope they flip them the Bird on the way out.

India fintech and the growing proxy war between global tech giants

Photo by anand purohit via Getty Images

Written by Arman Tabatabai

South African media conglomerate and investment giant Naspers is reportedly planning to invest $1 billion in India this year.

According to reports earlier this week, Naspers is looking towards India’s budding fintech market in particular to unload the fresh pile of dough it’s sitting on after recently lowering its stake in Tencent and cashing out on Walmart’s $16 billion acquisition of portfolio company Flipkart last year.

The fintech heavy thesis directionally makes sense in the context of Naspers’ broader strategy. Naspers has openly discussed its attraction to India’s financial services market and the company already has an established footprint in the region as the owner of payments platform PayU.

That said, the amount Naspers is reportedly looking to gift in just one year is astounding. Indian fintech startups saw around $2.6 billion of investment in 2018 according to Pitchbook. Naspers’ investment alone would represent a 40% spike in India’s total fintech venture capital.

Though one billion dollars in one year may seem ambitious, Naspers has proven it’s not afraid to pour billions into India and emerging verticals, having just led a $1 billion round in Indian food delivery startup Swiggy only a few months ago.

More importantly, Naspers’ push shows that the company is seriously doubling down in the escalating competition to become the dominant force in India’s booming fintech ecosystem. As we discussed in our recent conversation with Billionaire Raj author James Crabtree, India’s financial system is ripe for disruption. With secular tailwinds like growing mobile penetration and financial literacy, innovative financial models in India have begun leap-frogging traditional institutions, with Google and Boston Consulting Group even forecasting that the market for digital payments in India would reach $500 billion in size by 2020.

And many have taken notice — the number of fintech investments in India has grown at a 200%-plus compound annual growth rate over the last five years, according to data from Pitchbook, as leading investors and global tech powerhouses all battle to become the layer of financial infrastructure on which the future Indian economy sits.

A recent deep dive in the WSJ highlighted how crowded the ongoing fight for Indian payments dominance has become in the context of Paytm, an Indian startup that received a $1.4 billion investment from venture behemoth SoftBank:

The Indian market is one worth fighting for, with hundreds of millions of Indians getting online and starting to transact for the first time, thanks to plummeting prices for mobile data and smartphones.

Digital payments in India are soaring” and “set to explode,” Credit Suisse said in a February research note. They should rise nearly five times to $1 trillion by 2023, the report said…

…Meanwhile, it isn’t just Google and WhatsApp challenging Paytm . Indian e-commerce titan Flipkart, in which Walmart Inc. bought a controlling stake for $16 billion earlier this year, has a popular payments service called PhonePe. Amazon.com Inc. has its own payments service and two of India’s biggest telecom players, Bharti Airtel Ltd. and Reliance Jio Infocomm Ltd., offer digital wallets, as well.”

Next to peers like Alibaba, SoftBank, or Google, Naspers can often seem like the biggest tech company no one has ever heard of. But if its latest swan dive into India can help Naspers strike gold — as it did with its early investment in Tencent — it might just become the company powering the next economies of the world.

Thanks

To every member of Extra Crunch: thank you. You allow us to get off the ad-laden media churn conveyor belt and spend quality time on amazing ideas, people, and companies. If I can ever be of assistance, hit reply, or send an email to danny@techcrunch.com.

This newsletter is written with the assistance of Arman Tabatabai from New York

Tesla Model Y orders are now open

Customers can already place an order for the Tesla Model Y, a mid-sized crossover SUV that won’t go into production until 2020.

Tesla requires a $2,500 deposit to complete the order for the all-electric vehicle, according to information posted on its website. A disclaimer on the order form states that “production is expected to begin late next year.” Under that timeline, deliveries wouldn’t begin until late 2020 or possibly early 2021.

There are other clues on the order page, including that the seven-seat interior won’t be available until 2021. The Model Y will come standard as a five seater.

Tesla CEO Elon Musk unveiled the Model Y on Thursday night at the Tesla Design Studio in Los Angeles. During the presentation, Musk didn’t mention that customers could order the Model Y. That’s a departure from previous events, notably the Model 3 reveal in March 2016, which prompted thousands of people to put down $1,000 deposits.

The Model Y bears a striking resemblance to Model 3, and for good reason. The Model Y shares about 75 percent of the same parts as the Model 3.

The vehicle, which will come in a standard, long range, dual-motor all-wheel and performance variants, is larger than the Model 3, allowing it to accommodate seven people (for those who opt to pay the $3,000 up charge). The order page of the Model Y shows that it comes standard as a 5-seater. To get the 7-seater configuration, customers have to pay an additional $3,000.

The Model Y also sits higher than the Model 3, a distinction that is more obvious once you’re sitting inside. One of the most distinguishing differences is the Model Y has a panoramic roof.

The standard range version will start $39,000 and have 230 mile range. However, Tesla will first produce the performance, dual-motor and long range versions. Customers who want the standard range version of the Model Y will have to wait until at least spring 2021. The performance and dual motor variants will be able to travel 280 miles on a single charge, while the long-range version will, as it sounds, have the longest range at 300 miles.

All of the variants are designed to have the same kind of performance as its smaller sibling. The performance version of the Model Y will be able to travel from 0 to 60 miles per hour in 3.5 seconds and reach a top speed of 150 mph.

But that kind of performance comes at a higher price. The performance version will start at $60,000. The dual motor variant will start at $51,000 and the base price of the long-range version will be $47,000.

The Tesla Model Y is a 300-mile range Model 3 doppelganger coming in fall 2020

At first glance, it appeared that Tesla Model 3 had a doppelganger.

After years of teasers and hints, Tesla CEO Elon Musk finally unveiled the Model Y, a mid-sized all-electric vehicle that is slated to hit the marketplace in fall 2020.

The Model Y bears a striking resemblance to Model 3. The vehicle, which will come in a standard, long range, dual-motor all-wheel and performance variants, is a bit larger than the Model 3, allowing it to accommodate seven people (for those who opt to pay the $3,000 up charge). It also sits slightly higher than the Model 3. One of the most distinguishing differences is that the Model Y has a panoramic roof.

And that’s where the differences start to fade away.

The Model Y has the same interior as the Model 3, including the same single 15-inch touchscreen interface as well as other features like the door handles.

The photo below is a Model 3. 

And now, the Model Y. Notice a slightly higher stance and shorter front end.

Other important specs

The standard range version will start $39,000 and have 230 mile range. However, Tesla will first produce the performance, dual-motor and long range versions. Customers who want the standard range version of the Model Y will have to wait until at least spring 2021. The performance and dual motor variants will be able to travel 280 miles on a single charge, while the long-range version will, as it sounds, have the longest range at 300 miles.

All of the variants are designed to have the same kind of performance as its smaller sibling. The performance version of the Model Y will be able to travel from 0 to 60 miles per hour in 3.5 seconds and reach a top speed of 150 mph.

But that kind of performance comes at a higher price. The performance version will start at $60,000. The dual motor variant will start at $51,000 and the base price of the long-range version will be $47,000.

Musk didn’t say where the Model Y would be produced, nor did he get into other details beyond the vehicle specs and a vague timeline.

He did provide a bullish forecast for the Model Y, stating towards the end of the event that he expects Y sales to exceed Model S and Model X combined. Tesla has sold more than 500,000 vehicles to date, including the Roadster, S, X and 3.

Elon Musk finally hosted meme review with the co-creator of Rick and Morty

Tesla and SpaceX CEO Elon Musk has been teasing — and his fan base has been making pleas — to host a meme review. And after tweeted hints, meme review has arrived via YouTube star PewDiePie.

Musk tweeted last month a photo and a question “Host meme review?”

On Friday, Musk and Justin Roiland, one of the creators of Adult Swim’s Rick and Morty, appeared on YouTuber PewDiePie’s show for a meme review.

During the segment, Musk and Roiland rate various memes, like the one pictured below. The pair provide commentary and funny quips.

It looks like Musk and Roiland’s appearance has helped push PewDiePie above T-Series, an Indian music company on YouTube that has had the most subscribers. PewDiePie now has about a 20,000 subscriber lead.

The final meme, which pictures what appears to be a dead deer at the bottom of a pool, is what pushes Musk over the edge when he asks, “Jeez is that true? What, that actually happened? Oh my god,” as he bursts into fits of uncomfortable laughter.

You can watch the whole episode that PewDiePie uploaded on February 22 or skip to about minute 13 for Musk and Roiland.

 

Elon Musk finally hosted meme review with the co-creator of Rick and Morty

Tesla and SpaceX CEO Elon Musk has been teasing — and his fan base has been making pleas — to host a meme review. And after tweeted hints, meme review has arrived via YouTube star PewDiePie.

Musk tweeted last month a photo and a question “Host meme review?”

On Friday, Musk and Justin Roiland, one of the creators of Adult Swim’s Rick and Morty, appeared on YouTuber PewDiePie’s show for a meme review.

During the segment, Musk and Roiland rate various memes, like the one pictured below. The pair provide commentary and funny quips.

It looks like Musk and Roiland’s appearance has helped push PewDiePie above T-Series, an Indian music company on YouTube that has had the most subscribers. PewDiePie now has about a 20,000 subscriber lead.

The final meme, which pictures what appears to be a dead deer at the bottom of a pool, is what pushes Musk over the edge when he asks, “Jeez is that true? What, that actually happened? Oh my god,” as he bursts into fits of uncomfortable laughter.

You can watch the whole episode that PewDiePie uploaded on February 22 or skip to about minute 13 for Musk and Roiland.

 

Cadillac’s first electric vehicle will be a crossover

Cadillac revealed Sunday what will likely be the first electric vehicle in the luxury brand’s portfolio. And surprise, it’s a crossover.

The images of the full-size crossover SUV, which was unveiled during a debut party for the 2020 Cadillac XT6 in Detroit, kicks off a transformation of GM’s luxury brand. On Friday, GM announced plans to turn Cadillac into its lead electric vehicle brand in a bid to compete against Tesla as well as a host of other automakers bringing EVs onto the market.

Cadillac first electric crossover

Not much is known about this crossover yet. Cadillac said the name of the electric crossover and additional details about the vehicle will be revealed closer to launch.

This vehicle will not be based on the electric architecture found on GM’s Chevrolet models, the Volt or the Bolt EV. GM is starting with a clean slate and developing a new battery electric architecture, which Cadillac will be the first to use.

The most advanced components within the platform are the drive units and battery cells, which will be used throughout GM vehicle lineups in different countries, according to the automaker. The EVs can be configured in front-, rear- or all-wheel drive, and the output of their battery systems will be adjustable based on vehicle and customer needs, GM said.

The battery system also will be adjustable, based on vehicle and customer requirements.

This appears to be the beginning of an  aggressive product acceleration for Cadillac. Fresh off of the XT6 crossover reveal, Cadillac also hinted at both a future Escalade and an upcoming performance sedan. Cadillac said it plans to introduce new models at the rate of roughly one every six months through 2021.

Why Silicon Valley needs more visas

When I hear protesters shout, “Immigrants are welcome here!” at the San Francisco immigration office near my startup’s headquarters, I think about how simple a phrase that is for a topic that is so nuanced, especially for me as an immigrant entrepreneur.

Growing up in Brazil, I am less familiar with the nuances of the American debate on immigration legislation, but I know that immigrants here add a lot of jobs and stimulate the local economy. As an immigrant entrepreneur, I’ve tried to check all of those boxes, and really prove my value to this country.

My tech startup Brex has achieved a lot in a short period of time, a feat which is underscored by receiving a $1 billion dollar valuation in just one year. But we didn’t achieve that high level of growth in spite of being founded by immigrants, but because of it. The key to our growth and to working towards building a global brand is our international talent pool, without it, we could never have gotten to where we are today.

So beyond Brex, what do the most successful Silicon Valley startups have in common? They’re also run by immigrants. In fact, not only are 57% of the Bay Area’s STEM tech workers immigrants, they also make up 25% of business founders in the US. You can trace the immigrant entrepreneurial streak in Silicon Valley from the founders of SUN Microsystems and Google to the Valley’s most notorious Twitter User, Tesla’s Elon Musk.

Immigrants not only built the first microchips in Silicon Valley, but they built these companies into the tech titans that they are known as today. After all, more than 50% of billion dollar startups are founded by immigrants, and many of those startups were founded by immigrants on H-1B visas.

Photo courtesy of Flickr/jvoves

While it might sound counterintuitive, immigrants create more jobs and make our economy stronger. Research from the National Foundation of American Policy (NFAP) has shown that immigrant-founded billion-dollar companies doubled their number of employees over the past two years. According to the research, “WeWork went from 1,200 to 6,000 employees between 2016 and 2018, Houzz increased from 800 to 1,800 employees the last two years, while Cloudflare went from 225 to 715 employees.”

We’ve seen the same growth at Brex. In just one year we hired 70 employees and invested over $6 million dollars in creating local jobs. Our startup is not alone, as Inc. recently reported, “50 immigrant-founded unicorn startups have a combined value of $248 billion, according to the report [by NFAP], and have created an average of 1,200 jobs each.”

One of the fundamental drivers of our success is our international workforce. Many of our key-hires are from all over Latin America, spanning from Uruguay to Mexico. In fact, 42% of our workforce is made up of immigrants and another 6% are made up of children of immigrants. Plenty of research shows that diverse teams are more productive and work together better, but that’s only part of the reason why you should bet on an international workforce. When you’re working with the best and brightest from every country, it inspires you to bring forth your most creative ideas, collaborate, and push yourself beyond your comfort zone. It motivates you to be your best.

With all of the positive contributions immigrants bring to this country, you’d think we’d have less restrictive immigration policies. However, that’s not the case. One of the biggest challenges that I face is hiring experienced, qualified engineers and designers to continue innovating in a fast-paced, competitive market.

This is a universal challenge in the tech industry. For the past 10 years, software engineers have been the #1 most difficult job to fill in the United States. Business owners are willing to pay 10-20 percent above the market rate for top talent and engineers. Yet, we’re still projected to have a shortage of two million engineering jobs in the US by 2022. How can you lead the charge of innovation if you don’t have the talent to do it?

What makes matters worse is that there are so few opportunities and types of visas for qualified immigrants. This is limiting job growth, knowledge-sharing, and technological breakthroughs in this country. And we risk losing top talent to other nations if we don’t loosen our restrictive visa laws.

H1-B visa applications fell this year, and at the same time, these visas have become harder to obtain and it has become more expensive to acquire international talent. This isn’t the time to abandon the international talent pool, but to invest in highly specialized workers that can give your startup a competitive advantage.

Already, there’s been a dramatic spike in engineering talent moving to Canada, with a 40% uptick in 2017. Toronto, Berlin, and Singapore are fastly becoming burgeoning tech hubs, and many fear (rightfully) that they will soon outpace the US in growth, talent, and developing the latest technologies.

This year, U.S. based tech companies generated $351 billion of revenue in 2018. The U.S. can’t afford to miss out on this huge revenue source. And, according to Harvard Business School Professor William R. Kerr and the author of The Gift of Global Talent: How Migration Shapes Business, Economy & Society, “Today’s knowledge economy dictates that your ability to attract, develop, and integrate smart minds governs how prosperous you will be.”

Immigrants have made Silicon Valley the powerhouse that it is today, and severely limiting highly-skilled immigration benefits no-one. Immigrants have helped the U.S. build one of the best tech hubs in the world— now is the time for startups to invest in international talent so that our technology, economy, and local communities can continue to thrive.

After working with Tesla’s Australia battery, wind company wants more batteries

Article intro image

Enlarge / Bloomberg Best of the Year 2017: Powerpacks which will be used to form the world’s largest lithium-ion battery stand on display during a Tesla Inc. event at the Hornsdale wind farm, operated by Neoen SAS, near Jamestown, South Australia, on Friday, Sept. 29, 2017. (credit: Carla Gottgens/Bloomberg via Getty Images)

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Are diesel’s days numbered? A view from a trip to BYD’s electric bus factory

Enlarge / The lines of sight in the BYD factory are all like this: a row of buses stretching to the horizon. (credit: Megan Geuss)

One single diesel transit bus consumes the equivalent of 10,440 gallons of gasoline a year, according to the Federal Highway Administration. Replacing that diesel-burning transit bus with an electric bus has some obvious benefits. Electric buses improve local air quality, because the particulates that come from burning diesel don’t exist. And, according to the Union of Concerned Scientists, an electric bus runs cleaner than a diesel bus no matter where you plug it in on the US grid, even if you’re plugging into a grid fed by fossil fuels.

In the desert north of Los Angeles, a Chinese company called BYD (short for “Build Your Dreams”) is banking on transit managers realizing this. BYD offered Ars a tour of its Lancaster facility in July, and we found a bustling factory floor filled with 900 workers who were building, welding, shaping, and painting about 90 buses in various stages of completion. The company’s workforce, recently unionized, is expected to grow to 1,200 in the near future.

So far, BYD has put more than 250 electric buses on US roads, and, as of mid-July, the company had more than 400 orders in the pipeline. That’s a significant number of buses in this nascent industry: last December, Reuters estimated that only 300 public buses on US roads were electric. Of course, BYD’s numbers include publicly and privately owned electric buses, while Reuters’ statistic only tallies public buses. Still, the numbers show just how aggressively the electric bus industry is growing, considering the size of the market just six months ago.

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Report: Tesla’s latest production troubles are happening at its solar factory

Enlarge (credit: Getty Images)

Reuters reports that Tesla’s Buffalo, New York, factory, which is run in partnership with Panasonic, is experiencing severe assembly line issues, especially impacting Tesla’s ability to manufacture solar roof tiles.

Reuters’ information comes from eight current and former employees of both Panasonic and Tesla. According to those sources, the aesthetic qualities of the solar roof tiles are among the issues holding up production. Tesla has allegedly been using cells from JA Solar instead of cells from Panasonic, because the JA Solar cells have the preferred level of reflectivity. Panasonic, meanwhile, has been courting offers to sell its cells to other panel makers.

In a statement sent to Ars, Tesla said: “We are steadily ramping Solar Roof production at Gigafactory 2 in Buffalo and are also continuing to iterate on the product design and production process, learning from our early factory production and field installations.”

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