1010Computers - Webmaster

New email service, OnMail, will let recipients control who can send them mail

A number of startups over the years have promised to re-invent email only to have fallen short. Even Google’s radical re-imagining, the Inbox app, finally closed up shop last year. Today, another company is announcing its plans to build a better inbox. Edison Software is preparing to launch OnMail, a new email service that lets you control who enters your inbox. This is handled through a new blocking feature called Permission Control. The service is also introducing a number of other enhancements, like automatic read receipt and tracker blocking, large attachment support, fast delivery, and more.

Edison is already home to the popular third-party email app, Edison Mail.

Edison Mail is designed to work with your existing email, like your Gmail, Yahoo, Microsoft, or iCloud email, for example, among others. OnMail, however, is a new email service where users will be assigned their own email account at @onmail.com when the product debuts later this summer.

At launch, the web version of OnMail will work in a number of browsers. It will also work in the existing Edison Mail apps for Mac, iOS, and Android.

 

The biggest idea behind OnMail is to create a better spam and blocking system.

Though Gmail, Outlook.com, and others today do a fairly decent job at automatically filtering out obvious spam and phishing attempts, our inboxes still remain clogged with invasive messages — newsletters, promotions, shopping catalogs, and so on. We may have even signed up for these at some point. We may have even tried to unsubscribe, but can’t get the messages to stop.

In other cases, there are people with our email address who we’d rather cut off.

The last time Gmail took on this “clogged inbox” problem was in 2013 when it unveiled a redesigned inbox that separated promotions, updates, and emails from your social media sites into separate tabs. OnMail’s premise is that we should be able to just ban these emails entirely from our inbox, not just relocate them.

OnMail’s “Permission Control” feature allows users to accept or decline a specific email address from being able to place mail in your inbox. This is a stronger feature than Edison Mail’s “Block Sender” or “Unsubscribe” as a declined sender’s future emails will never hit your inbox — well, at least not in a way that’s visible to you.

In technical terms, declined senders are being routed to a folder called “Blocked.” But this folder isn’t displayed anywhere in the user interface. The blocked emails won’t get pulled up in Search, either. It really feels like the unwanted mail is gone. This is all done without any notification to the sender — whether that’s a human or an automated mailing list.

If you ever want to receive emails from the blocked senders again, the only way to do so will be by reviewing a list of those senders you’ve banned from within your Contacts section and make the change. You can’t just dig into a spam folder to resurface them.

In another update that puts the needs of the receiver above those of the sender, OnMail will remove all information sent from any invisible tracking pixels.

Today, most savvy email users know to disable images in their Gmail or other mail apps that allow it, so their email opens are not tracked. But OnMail promises to remove this tracking without the need to disable the images.

“We view pixel tracking as this horrific invasion of privacy and this is why we block all read receipts,” noted Edison Co-Founder and CEO, Mikael Berner. “The sender will never know that you opened their email,” he says.

Other promised features include an improved Search experience with easy filtering tools, support for large attachments, enhanced speed of delivery, and more.

Edison says it’s been working to develop OnMail for over two years, after realizing how broken email remains.

Today, U.S. adults still spend over 5 hours per day in our inboxes and feel like they’ve lost control. Tracking pixels and targeted ads are now common to the email experience. And searching for anything specific requires complicated syntax. (Google only recently addressed this too, by adding filters to Gmail search — but just for G Suite users for now.)

It may be hard for people who have set up shop for 10 or 20 years in the same inbox to make a switch. But there’s always a new generation of email users to target — just like Gmail once did.

And now that Gmail has won the market with over 1.5 billion active users, its innovations have slowed. Every now and then Gmail throws a bone — as with 2018’s debut of Smart Compose, for example — but it largely considered the email problem solved. A little fresh competition is just the thing it needs.

“We’ve invested years as a company working to bring back happiness to the inbox,” said Berner, in a statement. “OnMail is built from the ground up to change mail. Nobody should fear giving out their address or have to create multiple accounts to escape an overcrowded mailbox,” he said.

OnMail’s premise sounds interesting. However, its software is not yet live so none of its claims can be tested at this time. But based on Edison’s history with its Edison Mail app, it has a good handle on design and understanding what features email users need.

Currently, OnMail is open only to sign-ups for those who want to claim their spot on its platform first. Like Gmail once did, OnMail will send out invites when the service becomes available. Unlike Gmail, OnMail won’t be ad-supported, but will eventually offer free and paid versions of its service.

 

Powered by WPeMatico

PlayStation 5’s new DualSense controller is a sleek and futuristic gaming accessory

Sony has revealed the design of the PlayStation 5‘s controller — a follow-on to its popular DualShock line that takes on a new name for a new generation: DualSense.

The DualSense controller is kitted out in black and white, and in some ways looks like a futuristic, plastic armor-plated robot companion more than a gamepad. It’s still recognizably a product of the DualShock legacy, however, and has the same familiar button layout as previous PlayStation controllers. The DualSense incorporates haptic feedback, however, for what Sony says will be a heightened sense of immersion in gaming.

Haptic feedback should be an improvement over the relatively general and non-specific rumble vibration of current generation controllers, and Sony has also added more tactile response thanks to new L2 and R2 “adaptive triggers” that provide different kinds of tension response when performing in-game actions, like “drawing a bow to shoot an arrow,” the company says.

The resulting physical design is a bit chunkier than the DualShock 4, with more room needed inside the case for that adaptive trigger tech. Still, Sony said that it has redesigned the component angles to produce a controller that feels a lot lighter in the hand than it looks.

This controller also does away with the dedicated “Share” button, but replaces it with a “Create” button that sounds like it should offer similar features and much more, though Sony isn’t yet ready to tip its hand as to exactly what that entails, and promises more details to follow.

Meanwhile, there’s a new built-in mic array for voice chat without any headset required — though it sounds like this is intended primarily as a “you have it in case you need it” feature than a dedicated input, since Sony is still advocating use of a headset for longer play sessions.

From a pure looks perspective, Sony clearly decided it wanted to go a bit more bold than its standard all-black look for the first version of a new controller it ships with a console. The two-tone, Stormtrooper palette is complemented by a new light bar that lines both sides of the central touchpad.

Personally, I love this look — and the USB-C port that you can spy at the top of the controller for charging. I don’t even know if I’m all that interested in a new generation of console, but the controller alone might convince me to upgrade.

Powered by WPeMatico

Dear Sophie: Is unemployment considered a public benefit?

Sophie Alcorn
Contributor

Sophie Alcorn is the founder of Alcorn Immigration Law in Silicon Valley and 2019 Global Law Experts Awards’ “Law Firm of the Year in California for Entrepreneur Immigration Services.” She connects people with the businesses and opportunities that expand their lives.

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.”

“Dear Sophie” columns are accessible for Extra Crunch subscribers; use promo code ALCORN to purchase a one or two-year subscription for 50% off.


Dear Sophie: I have an H-4 visa and work authorization. I currently have a job that’s considered nonessential during the coronavirus emergency. If I get laid off, I would need unemployment assistance while I look for another job.

Would getting unemployment benefits hurt my or my spouse’s green card petition under the new public charge rule?

— Nonessential in NorCal

Dear Nonessential:

Thanks for your timely question. The short answer is no, getting unemployment benefits alone right now won’t jeopardize your or your spouse’s green card. This is because receiving unemployment benefits, getting tested for coronavirus and seeking emergency medical treatment (even if it’s covered by Medicaid) are all exempt from consideration as government benefits under the new public charge rule.

Immigration officials have long had the authority to deny individuals a visa or green card if they are likely to be dependent on public benefits. The new public charge rule, which went into effect on February 24, expands the factors immigration officials will consider. An additional form seeking health and financial information must now be submitted with most visa and green card applications. Immigration officials will use that information to determine whether applicants are or are likely to become dependent on government benefits.

If you have received a public benefit in the past, your application won’t necessarily be denied, but given what’s at stake, it’s important to consult an experienced immigration attorney.

Individuals who will be subjected to the increased scrutiny of the expanded public charge rule are:

Powered by WPeMatico

Relativity Space’s focus on 3D printing and cloud-based software helps it weather the COVID-19 storm

Just like in almost every other industry, there’s been a rash of layoffs among newer space startups and companies amid the novel coronavirus crisis. But Relativity Space has managed to avoid layoffs — and is even hiring, despite the global pandemic. Relativity CEO and founder Tim Ellis cites the company’s focus on large-scale 3D printing and its adoption of cloud-based tools and technologies as big reasons why his startup hasn’t felt the pinch.

Because Relativity’s forthcoming launch vehicle is almost entirely made up of 3D-printed parts, from the engines to the fuselage and everything in between, the company has been able to continue producing its prototypes essentially uninterrupted. Relativity has been classified an essential business, as have most companies operating in anything related to aerospace or defense, but Ellis said that they took steps very early to address the potential threat of COVID-19 and ensure the health and safety of their staff. As early as March 9, when the disease was really first starting to show up in the U.S. and before any formal restrictions or shelter-in-place orders were in effect, Relativity was recommending that employees work from home where possible.

“We’re able to do that, partially because with our automated printing technology we were able to have very, very few people in the factory and still keep printers running,” Ellis said in an interview. “We actually even have just one person now running several printers that are still actually printing — it’s literally a single person operating, while a lot of the company has been able to make progress working from home for the last couple of weeks.”

Being able to run an entire production factory floor with just one person on-site is a tremendous competitive advantage in the current situation, and a way to ensure you’re also respecting employee health and safety. Ellis added that the company has already been operating between multiple locations, including teams at Cape Canaveral, Florida, as well as at Stennis Space Center in Mississippi and at its headquarters in LA. Relativity also had a further distributed workforce with a few employees working remotely from locations across the U.S, and it focused early on ensuring that its design and development processes could work without requiring everyone to be centrally based.

“We’ve developed our own custom software tools to just streamline those workflows, that really helped,” Ellis said. “Also, just being more of a cloud-enabled company, while still complying with ITAR and security protocols, has been really, really advantageous as well.”

In addition to their focus on in-house software and cloud-based tools, Ellis credits the timing of their most recent round — a $140 million investment closed last October — as a reason they’re well-situated for enduring the COVID-19 crisis. He says that Relativity not only managed to avoid any layoffs, while sending out new offers, but they’re also still paying all employees, including hourly workers, their full regular wage. All of this stems from a business model that in retrospect, seems prescient, but that Ellis says actually just has significant advantages in today’s global business climate by virtue of chance. Still, he does believe that some of Relativity’s resilience thus far signals some of the biggest lasting changes that will result from the coronavirus pandemic.

“What it’s really going to change […] is the approach to global supply chain,” he said. “I think there’s going to be a big push to have more things made in America, and then less dependence on heavy globalization across supply chain. That’s one you thing we’ve always had with 3D printing — not only is it an automated technology, where we can have very few operators still making progress even during times like like this and printing some of the first-stage structures of our rocket — but on the supply chain side, just having simpler supply chains with fewer vendors and different types of manufacturing processes means it’s much less likely that we’ll see very significant supplier and supply chain interruptions.”

Meanwhile, while Ellis says that ultimately they can’t predict how the coronavirus crisis will impact their overall schedule in terms of planned launch activities, which includes flying their first 3D-printed vehicle in 2021, they anticipate being able to make plenty of progress through remote work and a production line that can easily comply with social isolation guidelines. Partner facility shutdowns, including the rocket engine test stand at Stennis, will definitely have an impact, but Relativity’s resilience could prove a model for manufacturing businesses of all stripes to emulate once this moment has passed.

Powered by WPeMatico

Mobile website builder Universe raises $10M from GV as it ventures into commerce

A startup that has framed itself as an Instagram for websites is now squaring up against Shopify as it nabs new funding from Google’s venture capital arm.

Brooklyn-based Universe has just closed a $10 million Series A from GV. The funding round was well in the works before the COVID-19 pandemic took hold stateside; nevertheless, CEO Joseph Cohen definitely sounded relieved to have everything signed.

“Hopefully, it’ll take some weight off their shoulders that may have been there otherwise,” said GV general partner M.G. Siegler, who led the deal and is taking a seat on their board.

When the team launched out of YC two years ago, the initial aim was to be the go-to short link for young people and creatives to stick in their Instagram bios. The mobile app allowed users to create very basic landing pages, allowing them to type up some text, toss up photos and arrange their creation across a couple of web pages.

As the startup matures and looks to home in on a more robust business model, they’re now looking to build an incredibly low-friction commerce platform. Users can add a shopping “block” to their site, add a photo, description and price and then start accepting orders.

“We’ve gone from a landing page builder to a full-fledged website builder,” Cohen told TechCrunch in an interview.

Universe is going after what Cohen calls “very small businesses.” This could be an artist selling prints, a yoga instructor charging for Zoom classes or one of their latest customers, a farmer selling live bait. “These are people who don’t work at desks,” Cohen says.

Shopify has been one of the biggest tech success stories of the past several years, but Cohen sees weaknesses for Universe to capitalize on. Shopify is “complex and not mobile-first,” he says. Universe not only doesn’t require a developer to implement, it doesn’t seem to require someone that’s particularly tech-savvy.

The price of simplicity for the end user is a hefty cut for Universe. At launch, the company isn’t taking a percentage for the first $1,000 of a customer’s revenue, but will take a 10% slice thereafter, a number that’s notably multiples higher than the rates of competitors.

Cohen acknowledges that if a business succeeds, this can be a significant expense for them, one that might push them to another platform. He say that he wants to figure out a model that can help his startup “grow and scale” with their customers, but he didn’t offer up any details on what that might look like.

The team is still working with free and paid “pro” tiers that offer advanced features like analytics. Commerce features will be available for both tiers.

Universe has raised $17 million to date. Other investors include Javelin Venture Partners, General Catalyst and Greylock Partners.


We chatted with GV’s M.G. Siegler about closing this deal and how his role as an investor has shifted since the current crisis took hold. You can read that interview on Extra Crunch.

Powered by WPeMatico

GV’s M.G. Siegler on portfolio management, crisis fundraising and his latest investment

The coronavirus pandemic has pushed entrepreneurs and investors into unknown territory.

Google’s GV just led a $10 million investment in Universe, a low-friction website builder that’s venturing into the world of commerce.

The investment was in the works before COVID-19 hit America in force, but things were finalized for the Brooklyn startup in late March. I chatted with M.G. Siegler, the general partner at GV (and former TechCrunch writer) who led the deal, about how the crisis was affecting his investment work and how he was balancing portfolio work with sourcing new deals.

This interview has edited for length and clarity.

TechCrunch: This deal sounds like it was in the works before pandemic concerns really hit America, but when you saw this situation arise, did it change your thinking about this deal at all?

M.G. Siegler: The reality is we’re still going to be continuing to look for interesting opportunities to invest in. History has shown that even during great financial turmoil, many companies are still being built, although it’s certainly not easy for anyone, given that we’re all stuck inside and trying to make things work. I think Universe is in an interesting spot; they have a tool that can potentially help some of these struggling businesses move online quicker and create commerce opportunities that they really need to think about given the current realities.

So there’s no thought that we shouldn’t do something just because of the current macro environment if we’re really passionate about it to begin with. Obviously, there’s varying degrees of that for different sectors, but I do think that Universe had been in a great position before this situation, and it seems like they have different opportunities now.

Powered by WPeMatico

Borderlands 3 bridges the gap between citizen science and blockbuster games

The Borderlands series has long offered players a chaotic loot scramble of explosive cel-shaded cartoon violence and intricately tuned shooting that leaves anything that isn’t the fun part on the cutting room floor. It’s like the gaming equivalent of a very large, very rich dessert — and what if, by eating dessert, you could also make the world better? Imagine.

Borderlands 3 publisher 2K and developer Gearbox Software is elevating the series’ latest game to lofty new ideals with a new in-game experience called Borderlands Science, a crowdsourced citizen science project that will leverage the hit game’s massive player base to conduct actual scientific research. In this case that’s mapping the gut microbiome — one of the most interesting frontiers in biological science right now. Scientists believe that microbes in the gut could play a role in everything from autism to allergies, though many of those mechanics remain mysterious and difficult to study given the massive breadth of microbes in the gut and the limits of computational power.

For players, Borderlands Science appears in the game as a retro arcade cabinet that will pop up soon on Sanctuary III, the game’s central starship. The mini-game itself looks like a colorful, Tetris-like experience, and if players don’t read the fine print they might not even know that they’re mapping microbes. Assuming that Gearbox’s normal ethos is on display here it’s also likely fun and addictive, though we haven’t yet tried it. And of course, players won’t be expected to engage with the project for the good of science alone. The mini-game will offer players special rewards and Vault Hunter skins to collect — a smart and natural way to incentivize players in a game that’s all about the pursuit of loot.

The undertaking is a partnership between researchers at McGill University, the Microsetta Initiative at UC San Diego School of Medicine and Massively Multiplayer Online Science (MMOS), a project connecting video games with vital scientific research.

“We see Borderlands Science as an opportunity to use the enormous popularity of Borderlands 3 to advance social good,” Gearbox Software co-founder Randy Pitchford said of the initiative, calling it a “new nexus between entertainment and health.”

Gaming-focused citizen science is emerging as a fascinating way to pair the gaming community’s natural strengths — sustained focus, patience for repetitive tasks, intensive time commitments — with the needs of scientific researchers. Two prominent examples are EyeWire, which invites players to help map the brain’s neural networks and Foldit, in which users solve puzzles to map complex protein structures believed to have a role in diseases like HIV and Alzheimer’s.

Apart from a handful of exceptions — like EVE Online players mapping exoplanets — these citizen science games are usually browser-based, with more of an edu-science vibe than anything resembling the flashy hit games that drive the industry. Borderlands Science bridges that gap, bringing citizen science into the lucrative, bustling world of triple-A games. And if the model pioneered here goes well, the project could be an excellent example for other publishers and developers looking to weave real scientific good into their games in the future.

Powered by WPeMatico

Investor survey results: Upcoming trends in social startups

Voice-based social networks and gaming as a new form of identity were among the top emerging trends in consumer social startups, according to an Extra Crunch survey of top social tech investors. Meanwhile, anonymity and dating apps with a superfluous twist were spaces where investors were most pessimistic.

Extra Crunch assembled a list of the most prolific and well-respected investors in social. Many have funded or worked for the breakout companies changing the way we interact with other people. We asked about the most exciting trends they’re seeing and which areas they expect will soon spawn blockbuster social apps.

Subscribe to Extra Crunch to read the full answers to our questionnaire from funds like Andreessen Horowitz, CRV and Initialized.

Here are the 16 leading social network VCs that participated in our survey:

Stay tuned next week for a follow-up article from these investors detailing their thoughts on social investing in the COVID-19 era.

Olivia Moore & Justine Moore, CRV

What trends are you most excited about in social from an investing perspective?

First, it’s worth noting that consumer social is very hard to predict. Unlike enterprise software, there’s no rational buyer, and the things that take off can seem “random” or dumb. Startups that see huge success in this space are often pioneering a new feature or way of communicating that hasn’t existed before. Any VC who claims to know what the “next big thing” in consumer social will look like should probably go build it themselves!

Powered by WPeMatico

Shippo raises a $30M Series C after posting rapid 2019 growth

Early this afternoon Shippo, a shipping software and services company, announced that it has closed a $30 million Series C. The funding round roughly doubles the capital that the firm has raised to-date, from a little over $29 million to just under $60 million.

The round, however, wasn’t put together recently. As is often the case with funding events, Shippo raised its capital a while back and is only announcing it now. According to its CEO, Laura Behrens Wu, her startup started raising its Series C in late Q4 2019, with the capital hitting its accounts the day after Christmas. So, Shippo started 2020 well capitalized, and should have a comfortable capital base heading into this year’s economic uncertainty.

The funding round was led by a new investor, D1 Capital Partners, and participated in by a number of prior investors including Uncork Capital (which led a 2014 Seed investment into the company), Union Square Ventures (which led the company’s Series A in 2016) and Bessemer (which led its 2017 Series B).

Growth, margins

Shippo sits between retailers and consumers, helping sellers ship goods to buyers quickly and, it promises, inexpensively. The startup works with nearly five dozen shipping partners around the world, and plugs into the merchant worlds of Amazon, Shopify, Wix and others.

Like a number of successful startups, Shippo is trying to take something that is complex, and make it simple while generating revenue along the way. There are a number of loose examples we can lean on. For example, Plaid took all the complexity of talking to different financial institutions and shoved it into an accessible API. Twilio did something similar for telephony. Stripe made payments simple for others to integrate. You get the idea. Shippo wants to the same for shipping.

So far its model has good momentum. Heading into its funding round the firm had doubled (“100% growth,” Behrens Wu) in the preceding year, the sort of expansion that investors covet. It’s never bad to raise on the back of aggressive growth, as Shippo’s Series C shows; the company’s new valuation is “slightly higher” than TechCrunch’s estimate of $150 million, according to its CEO.

And even more, Shippo’s hybrid software and sales model (it charges for access to its shipping software and generates revenue from select shipping spend) creates attractive economics. Shippo’s gross margins are right around 80%, according to the startup, putting the company in the middle-upper tier of SaaS firms. Its growth isn’t based on the upselling shipping by a few points at volume; Shippo does have venture-ready economics.

It might seem odd to stress that point, but after WeWork’s implosion, it’s worth checking to make sure that startups raising as if they have strong revenue quality actually do.

Shippo has big aspirations, as you’d expect. “When you think about shipping software,” Behrens Wu told TechCrunch during an interview, “most people, even in tech, can’t name a single shipping software company, but everyone can name one or two payment companies. Everyone knows PayPal, Stripe, maybe Adyen or Braintree.” She wants to make Shippo as well known for shipping as Stripe is for payments.

There was secular movement towards her vision even before the pandemic. Today, online shopping — the grist for Shippo’s mill — is even more important. And it’s likely to become even more so over time, if growth shown by Amazon and Shopify in recent quarters is any indication of what’s to come, which means that the market for Shippo’s services will grow in time, and it’s always easier to grow in an expanding market than to claw for share in a stagnant pool.

Finally, in addition to its new capital and raised valuation, Shippo also announced that it has hired Catherine Stewart, former chief business officer at WordPress juggernaut Automattic, to be its COO. If Shippo is hiring a COO now, then we expect to see a CFO added around the time of its Series D. And then we get to start annoying the company about its IPO timeline.

Shippo is one of the lucky startups that raised right before the world changed. Now it’s up to the startup to conserve cash while continuing to grow while the global economy struggles. Let’s see how it performs.

Powered by WPeMatico

Another major fintech exit as SoFi acquires banking and payments platform Galileo for $1.2B

The fintech wars continue to heat up with another major exit in the space.

Consumer financial services platform SoFi announced today that it is acquiring payments and bank account infrastructure company Galileo for $1.2 billion in total cash and stock. The acquisition is dependent on customary closing conditions.

Salt Lake City-based Galileo was founded in 2000 by Clay Wilkes and was bootstrapped to profitability over the intervening two decades. My colleague Jon Shieber wrote a profile of Galileo back in November after the company announced its second round of external funding, a $77 million Series A check from Accel, which was led by growth partner John Locke. The company had previously raised an $8 million Series A round from Mercato Partners in April 2014.

Galileo provides APIs that allow fintech companies like Monzo and Chime to easily create bank accounts and issue physical and virtual credit cards, among myriad other services. While simple in theory, banking regulations and financial rules place a huge regulatory burden on fintech companies, burdens that Galileo takes on as part of its platform.

The company has found particular success in the United Kingdom, where all five of the country’s largest fintechs are customers. Globally, it processed an annualized $45 billion in transaction volume last month, up from $26 billion in October 2019 — nearly doubling in just six months.

From a strategic perspective, SoFi’s objective is that Galileo will help power its expanding suite of finance products and offer it another revenue source outside of consumer services. While SoFi was founded a decade ago to offer ways to secure better financial terms for student loans, it now offers a bevy of consumer financial options, including loan, investment and insurance products as well as cash and wealth management tools. With Galileo, it now has a clear B2B revenue component as well.

SoFi, which is now led by ex-Twitter COO Anthony Noto, has also raised hundreds of millions of new capital from the likes of Qatar in recent years. The company was most recently valued at $4.3 billion.

Galileo will operate as an independent division of SoFi, and will be continuing its operations with founder Wilkes remaining as chief executive.

As fintech valuations have rapidly expanded in recent years, the companies that empower those fintechs have increasingly become strategic for investors. Earlier this year, Visa bought Plaid for $5.3 billion, in what was considered a key exit for a finance infrastructure company. That exit brought acute investor and strategic interest to the space, interest that almost certainly accrued to Galileo, as well, and helps explain the company’s relatively quick exit from its funding round last year.

As for Accel, the firm has long had a strategy of investing in mostly bootstrapped companies, sometimes a decade or more after their founding, with examples outside of Galileo including 1Password, Qualtrics, Atlassian, GoFundMe and Tenable. Accel also led this type of round into payments platform Braintree, where the firm met the startup’s GM Juan Benitez, who also joined Galileo’s board in November along with Accel’s Locke.

Accel’s valuation of the deal was not publicly disclosed in November, but a source with knowledge of the acquisition today characterizes the firm’s return as more than 4x. Given that Accel held the equity for roughly half a year, that’s quite the IRR multiple in an otherwise challenging global macro context. Given that the acquisition of Galileo was for cash and stock, Accel likely now holds a stake in SoFi, making at least part of the return unrealized.

Galileo was represented by Qatalyst in the transaction.

Updated April 7 to include the $8 million Series A funding round led by Mercato Partners and more context on IRR.

Powered by WPeMatico