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With the pandemic playing havoc with children’s education, edtech startups have been on a roll. A new fundraising seems to come almost every week at this point.
Today it’s Novakid’s turn. This edtech startup is yet another “learning English as a second language for children” startup. But it at least has a chance among the plethora of solutions out there, having raised a $4.25 million Series A financing led by Hungary-based PortfoLion (part of OTP, a leading banking group in Eastern Europe), alongside a prominent edtech-focused U.S. fund, LearnStart. LearnStart is part of the LearnCapital VC which has previously backed VIPKID and Brilliant.org. TMT Investments and Xploration Capital also joined the round. Both seed investors — South Korea-based BonAngels as well as LETA Capital — took part in this financing round in January this year ($1.5 million).
Novakid’s teaching method is based around the ideas of language acquisition by Asher, Thornbury, Krashen and Chomsky, and it is specifically suited for children aged 4-12. It is incorporated in the U.S. with development and customer support around Europe.
Max Azarow, co-founder and CEO said: “Novakid is reinventing English learning for kids in countries where English is not a primary spoken language. There, English would usually be taught as an abstract subject, with focus on grammar and with little live practice offered. Novakid on the other hand implements a unique format that combines a highly-interactive digital curriculum with individual live tutor sessions where students and tutor only speak English for a 100% language immersion.”
Aurél Påsztor, partner at PortfoLion, commented: “Novakid attracted investor attention due to its excellent traction, which resulted in over 500% growth year-on-year both in terms of number of students and in terms of revenue. Other attractive points were strong customer retention, international business footprint and a solid monetization via paid subscriptions.”
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This morning Airbnb released an S-1/A filing that details its initial IPO price range. The home-sharing unicorn intends to price its shares between $44 and $50 in its debut.
Per the company’s own accounting, it will have 596,399,007 or 601,399,007 shares outstanding, depending on whether its underwriters exercise their option. That gives the company a valuation range of $26.2 billion to $30.1 billion at the extremes.
The company’s simple share count does not include a host of other shares that have vested but not yet been exercised. Including those shares, the company’s fully diluted valuation stretches to $35 billion, by CNBC’s arithmetic.
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The top end of Airbnb’s simple valuation places it near its Series F valuation set in 2017. Its fully diluted valuation exceeds that $30.5 billion valuation and is far superior to the $18 billion, post-money valuation that it raised at during its troubled period early in the COVID-19 pandemic.
For those investors, Silver Lake and Sixth Street, the company’s initial IPO price range is a win. For the company’s preceding investors, to see the company appear ready to at least match its preceding private valuation is a win as well, given how much damage Airbnb’s business sustained early in the pandemic.
But how do those Airbnb valuation numbers match up against its revenues, and will public market investors value the company based on its current results, or expectations for a return-to-form once a vaccine comes to market? And if so, is Airbnb expensive or not?
Shares of Booking Holdings, which owns travel services like Kayak, Priceline, OpenTable and others, have almost doubled in value since its pandemic lows and is within spitting distance of its all-time highs. This despite its revenues falling 48% in its most recent quarter. There’s optimism in the market that travel companies are on the cusp of a return to form, buoyed — we presume — by good news regarding effective coronavirus vaccines.
My expectation is that Airbnb is enjoying a similar bump, as investors intend to buy its shares not to bask in awe of its Q4 2020 results, but instead to enjoy what happens in the back half of 2021 as vaccines roll out and the travel industry recovers.
But what happens if we stack Airbnb’s revenues against its valuation today?
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As we’ve moved to work from home during the pandemic, it’s been challenging for remote workers to feel connected. Loop Team, a new entrant into the enterprise communications space, thinks the way we are communicating needs improvement. That’s why the startup is releasing Loop Team today, a tool that is trying to use software to reproduce the in-office experience.
Company founder and CEO Raj Singh says that he learned about the problems of feeling disconnected first-hand at a previous remote-first company, but in spite of his best attempts to use technology to produce that in-office feel, he said he continued to feel out of the loop (so to speak). That’s when he decided to build the solution he wanted.
“We’ve looked at a lot of the interactions that happen when you’re physically in an office — the visual communication, the background conversations, the hallway chatter, the serendipitous bumping, things like that. And we built an experience that effectively is a virtual office. And so it tries to represent the best parts of what a physical office experience might be like, but in a virtual form,” Singh explained to me.
While he created this company prior to COVID, the pandemic has highlighted the need for a tool like this. Before he created the software, he interviewed hundreds of people who worked from home to understand their issues working outside of the office and he heard a lot of common complaints.
“There was an office and they didn’t necessarily know what was going on. They didn’t know who was available. They didn’t know who was around. It was difficult to connect. Everything was scheduled through a calendar. They were missing some of that presence — and they were feeling lonely or out of touch or out of the loop,” he said.
His company’s solution tries to reproduce the office experience using AI, good old-fashioned presence awareness and other tech to let team members know what you’re doing and if you’re available to chat. So just as you would wander down the hall and see your colleague on the phone or deeply involved with work on the laptop, and know to leave them be, you could get that same feel with Loop.
Image Credits: Loop Team
It gives the current status of the person, and you can know from looking at the list of people on your team who’s available to talk and who’s busy. As you go into virtual discussions, the team can see who’s having meetings and individuals can pop in too, just as you might do in the office.
What’s more, you can set up rooms (like in Slack), but these are designed to give you a more personal connection using video and audio for actual discussion. You can work on projects via screen share and people who miss these meetings because of other obligations or time zone differences can always review what they missed.
While you can do all of these things in Slack and Zoom, or in some combination of similar tools, Loop’s layout and presentation is designed to help you see the conversations in a clear way and expose what you want to see, while hiding parts of the day that don’t interest you.
The product is available for free starting today, but Singh wants to introduce a pricing model sometime next year based on team size. He expects there will always be a freemium version for teams with fewer than 10 people.
The company was founded in 2018 and nurtured at the Stanford Research Institute (SRI). It has raised $4.75 million so far. Today it starts on its journey as a startup with its first product, and it’s one that comes with good timing as more teams find themselves working remotely than ever before.
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India’s Oyo has been one of the worst impacted startups with the coronavirus, but it has enough cash to steer through the pandemic and then look at funding further scale, a top executive says.
In a town hall with employees last week, Oyo founder Ritesh Agarwal said the budget lodging firm “continued to hold on to close to a billion dollars of cash” across its group companies and joint venture firms and has “tracked to runway very closely.”
“At the same time, we’ve been very disciplined in making sure that we can respond to the crisis in a good way to try and ensure that we can come out of it at the right time,” he said in a fireside chat with Rohit Kapoor, chief executive of Oyo India and SA, and Troy Alstead, a board member who previously served as the chief executive officer of Starbucks.
The revelation will deliver a huge reassurance to employees and hotel partners of Oyo, which eliminated or furloughed more than 5,000 jobs earlier this year and reported in April that the pandemic had cut its revenue and demand by more than 50%.
Oyo also reported a loss of $335 million on $951 million revenue globally for the financial year ending March 31, 2019, and earlier this year pledged to cut down on its spending.
Agarwal said the startup is recovering from the pandemic as nations relax their lockdowns, and with recent progress with vaccine trials, he is hopeful that the travel and hospitality industries will bounce back strongly.
“Together globally, we were able to get to around 85% of the gross margin dollars of our pre-COVID levels. This I can tell you was extremely hard. But in my view was probably only possible because of the efforts of our teams in each one of the geographies,” he said, adding that Oyo Vacation has proven critical to the business in recent months delivering “packed” hotels and holiday homes.
During the conversation, a transcript of which was shared with employees and obtained by TechCrunch, Agarwal was heard talking about making Oyo — which was privately valued at $10 billion last year when it was in the process of raising $1.5 billion — ready for IPO. He, however, did not share a timeline on when the SoftBank-backed startup plans to go public and hinted that it’s perhaps not in the immediate future.
“And last but not the least, for me, it is very critical. I want the groups to know that I, our board and our broader management are fully committed to making sure that long-term wealth creation for our OYOpreneurs — beyond that of just the compensation, but the wealth creation by means of your stocks can be substantially grown.”
“At the end of the day, what is the right time to go out is frankly a decision of the board to make and from the management side, we’ll be ready to make sure that we build a company that is ready to go public. And we will look at various things like that of the market situation, opportunities outside and so on, that the board will consider and then potentially help advise on the timeline,” he said.
Alstead echoed Agarwal’s optimism, adding, “I think that OYO is made up of a combination of assets, its hotels, its homes, its vacation homes. That’s unique, I think in the industry in the category, I think it makes it probably a little more challenging sometimes for people externally to measure and compare and benchmark a unique portfolio company like this. But I’d also tell you, I think that makes OYO resilient. It makes OYO balanced for the future. It gives OYO several sorts of vertical opportunities to address both customer needs at any time, whether it be a hotel or a small hotel or a vacation home.”
“And it also gives opportunities and expands that interaction in a good healthy way with the property owners, with the partners, who have an opportunity depending on what asset type they have partnered with OYO in different ways, and also to have the access to a technology platform and a continued investment in that innovative platform for customers. So all those things, I think a balanced portfolio, a technology platform, a heavy focus on putting the customer first, putting the business partner first — all those things, in my view, are what positioned OYO for the future.”
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There are 12 million small and medium businesses in the U.S., yet they have continued to be one of the most underserved segments of the B2B universe: That volume underscores a lot of fragmentation, and alongside other issues like budget constraints, there are a number of barriers to building for them at scale. Today, however, a startup helping SMBs get online is announcing some significant funding — a sign of how things are changing at a moment when many businesses have realised that being online is no longer an option, but a necessity.
GoSite, a San Diego-based startup that helps small and medium enterprises build websites, and, with a minimum amount of technical know-how, run other functions of their businesses online — like payments, online marketing, appointment booking and accounting — has picked up $40 million in funding.
GoSite offers a one-stop shop for users to build and manage everything online, with the ability to feed in up to 80 different third-party services within that. “We want to help our customers be found everywhere,” said Alex Goode, the founder and CEO of GoSite. “We integrate with Facebook and other consumer platforms like Siri, Apple Maps and search engines like Google, Yahoo and Bing and more.” It also builds certain features like payments from the ground up.
The Series B comes on the back of a strong year for the company. Driven by COVID-19 circumstances, businesses have increasingly turned to the internet to interact with customers, and GoSite — which has “thousands” of SMB customers — said it doubled its customer base in 2020.
This latest round is being led by Left Lane Capital out of New York, with Longley Capital, Cove Fund, Stage 2, Ankona Capital and Serra Ventures also participating. GoSite is clearly striking while the iron is hot: Longley, also based out of San Diego, led the company’s previous round, which was only in August of this year. It has now raised $60 million to date.
GoSite is, in a sense, a play for more inclusivity in tech: Its customers are not companies that it’s “winning” off other providers that provide website building and hosting and other services typically used by SMBs, such as Squarespace and Wix, or GoDaddy, or Shopify.
Rather, they are companies that may have never used any of these: local garages, local landscapers, local hair salons, local accountancy firms, local dentists and so on. Barring the accounting firm, these are not businesses that will ever go fully online, as a retailer might, not least because of the physical aspect of each of those professions. But they will need an online presence and the levers it gives them to communicate in order to survive, especially in times when their old models are being put under strain.
Goode started GoSite after graduating from college in Michigan with a degree in computer science, having previously grown up around and working in small businesses — his parents, grandparents and others in his Michigan town all ran their own stores. (He moved to San Diego “for the weather,” he joked.)
His belief is that while there are and always will be alternatives like Facebook or Yelp to plant a flag, there is nothing that can replace the value and longer-term security and control of building something of your own — a sentiment small business owners would surely grasp.
That is perhaps the most interesting aspect of GoSite as it exists today: It precisely doesn’t see any of what already exists out there as “the competition.” Instead, Goode sees his purpose as building a dashboard that will help business owners manage all that — with up to 80 different services currently available — and more, from a single place, and with minimum need for technical skills and time spent learning the ropes.
“There is definitely huge demand from small businesses for help and something like GoSite can do that,” Goode said. “The space is very fragmented and noisy and they don’t even know where to start.”
This, combined with GoSite’s growth and relevance to the current market, is partly what attracted investors.
“The opportunity we are betting on here is the all-in-one solution,” said Vinny Pujji, partner at Left Lane. “If you are a carpet cleaner or house painter, you don’t have the capacity to understand or work with five or six different pieces of software. We spoke with thousands of SMBs when looking at this, and this was the answer we heard.” He said the other important thing is that GoSite has a customer service team and for SMBs that use it, they like that when they call, “GoSite picks up the phone.”
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Latvian fintech startup Nordigen is switching to a freemium model thanks to a free open banking API. Open banking was supposed to democratize access to banking information, but the company believes banking aggregation APIs from Tink or Plaid are too expensive. Instead, Nordigen thinks it can provide a free API to access account information and paid services for analytics and insights services.
Open banking is a broad term and means different things, from account aggregation to verifying account ownership and payment initiation. The most basic layer of open banking is the ability to view data from third-party financial institutions. For instance, some banks let you connect to other bank accounts so you can view all your bank accounts from a single interface.
There are two ways to connect to a bank. Some banks provide an application programming interface (API), which means that you can send requests to the bank’s servers and receive data in return.
While all financial institutions should have an open API due to the European PSD2 directive, many banks are still dragging their feet. That’s why open banking API companies usually rely on screen scraping. They mimic web browser interactions, which means that it’s slow, it requires a ton of server resources and it can break.
“If you’re wondering how we’d be able to afford it, our free banking data API was designed purely with PSD2 in mind, meaning it’s lightweight in strong contrast to that of incumbents. So it wouldn’t significantly increase our costs to scale free users,” Nordigen co-founder and CEO Rolands Mesters told me.
So you don’t get total coverage with Nordigen’s API. The startup currently supports 300 European banks, which covers 60 to 90% of the population in each country. But it’s hard to complain when it’s a free product anyway.
Some Nordigen customers will probably want more information. Nordigen provides financial data analytics. It can be particularly useful if you’re a lending company trying to calculate a credit score, if you’re a financial company with minimum income requirements and more.
For those additional services, you’ll have to pay. Nordigen currently has 50 clients and expects to attract more customers with its new freemium strategy.
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Vivenu, a ticketing platform that offers an API for venues and promoters to customize to their needs, has closed a $15 million (€12.6 million) Series A funding round led by Balderton Capital. Previous investor Redalpine also participated.
Historically speaking, most ticketing platform startups took a direct to consumer approach, or have provided turnkey solutions to big event promoters. But in this day and age, most events require a great deal more flexibility, not least because of the pandemic. So, by offering an API and allowing promoters that flexibility, vivenu managed to gain traction.
Venues and event owners get a full-featured ticketing, out-of-the-box platform with full real-time dynamic control over all aspects of selling tickets, including configuring prices and seating plans, leveraging customer data and insights and mastering a branded look and feel across their sales channels. It has exposed APIs enabling many different custom use cases for large international ticket sellers. Since its seed funding in March, the company says it has sold more than 2 million tickets.
Simon Hennes, CEO and co-founder of vivenu, said in a statement: “We created vivenu to address the need of ticket sellers for a user-centric ticketing platform. Event organizers were stuck with solutions that heavily depend on manual processes, causing high costs, dependencies, and frustration on various levels.”
Daniel Waterhouse, partner at Balderton, said: “Vivenu has built a sophisticated product and set of APIs that gives event organisers full control of their ticketing operations.”
Vivenu is also the first European investment of Aurum Fund LLC, the fund associated with the San Francisco 49ers. Also investing in the round are angels, including Sascha Konietzke (founder at Contentful), Chris Schagen (former CMO at Contentful), Sujay Tyle (founder at Frontier Car Group) and Tiny VC.
In March 2020, vivenu secured €1.4 million in seed funding, bringing its total funding to €14 million. Previous investors include early-stage venture capital investor Redalpine, GE32 Capital and Hansel LLC (associated with the founders of Loft).
Speaking to TechCrunch, Hennes said: “You have to send your seat map to Ticketmaster, and then the account manager comes back to you with a sitemap. This goes back and forth and takes ages. With us you have a seating chart designer basically integrated into the software which you can simply change yourself.”
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DevOps continues to get a lot of attention as a wave of companies develop more sophisticated tools to help developers manage increasingly complex architectures and workloads. In the latest development, Databand — an AI-based observability platform for data pipelines, specifically to detect when something is going wrong with a datasource when an engineer is using a disparate set of data management tools — has closed a round of $14.5 million.
Josh Benamram, the CEO who co-founded the company with Victor Shafran and Evgeny Shulman, said that Databand plans include more hiring; to continue adding customers for its existing product; to expand the library of tools that it’s providing to users to cover an ever-increasing landscape of DevOps software, where it is a big supporter of open-source resources; as well as to invest in the next steps of its own commercial product. That will include more remediation once problems are identified: that is, in addition to identifying issues, engineers will be able to start automatically fixing them, too.
The Series A is being led by Accel with participation from Blumberg Capital, Lerer Hippeau, Ubiquity Ventures, Differential Ventures and Bessemer Venture Partners. Blumberg led the company’s seed round in 2018. It has now raised around $18.5 million and is not disclosing valuation.
The problem that Databand is solving is one that is getting more urgent and problematic by the day (as evidenced by this exponential yearly rise in zettabytes of data globally). And as data workloads continue to grow in size and use, they continue to become ever more complex.
On top of that, today there are a wide range of applications and platforms that a typical organization will use to manage source material, storage, usage and so on. That means when there are glitches in any one data source, it can be a challenge to identify where and what the issue can be. Doing so manually can be time-consuming, if not impossible.
“Our users were in a constant battle with ETL (extract transform load) logic,” said Benamram, who spoke to me from New York (the company is based both there and in Tel Aviv, and also has developers and operations in Kiev). “Users didn’t know how to organize their tools and systems to produce reliable data products.”
It is really hard to focus attention on failures, he said, when engineers are balancing analytics dashboards, how machine models are performing, and other demands on their time; and that’s before considering when and if a data supplier might have changed an API at some point, which might also throw the data source completely off.
And if you’ve ever been on the receiving end of that data, you know how frustrating (and perhaps more seriously, disastrous) bad data can be. Benamram said that it’s not uncommon for engineers to completely miss anomalies and for them to only have been brought to their attention by “CEO’s looking at their dashboards and suddenly thinking something is off.” Not a great scenario.
Databand’s approach is to use big data to better handle big data: it crunches various pieces of information, including pipeline metadata like logs, runtime info and data profiles, along with information from Airflow, Spark, Snowflake and other sources, and puts the resulting data into a single platform, to give engineers a single view of what’s happening and better see where bottlenecks or anomalies are appearing, and why.
There are a number of other companies building data observability tools — Splunk perhaps is one of the most obvious, but also smaller players like Thundra and Rivery. These companies might step further into the area that Databand has identified and is fixing, but for now Databand’s focus specifically on identifying and helping engineers fix anomalies has given it a strong profile and position.
Accel partner Seth Pierrepont said that Databand came to the VC’s attention in perhaps the best way it could: Accel needed a solution like it for its own internal work.
“Data pipeline observability is a challenge that our internal data team at Accel was struggling with. Even at our relatively small scale, we were having issues with the reliability of our data outputs on a weekly basis, and our team found Databand as a solution,” he said. “As companies in all industries seek to become more data driven, Databand delivers an essential product that ensures the reliable delivery of high-quality data for businesses. Josh, Victor and Evgeny have a wealth of experience in this area, and we’ve been impressed with their thoughtful and open approach to helping data engineers better manage their data pipelines with Databand.”
The company is also used by data teams from large Fortune 500 enterprises to smaller startups.
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French startup Ankorstore has raised a $29.9 million Series A round (€25 million) with Index Ventures leading the round. Existing investors GFC, Alven and Aglaé are also participating.
Ankorstore is building a wholesale marketplace that connects independent shop owners with brands selling household supplies, maple syrup, headbands, bath salts, stationery items and a lot more. That list alone should remind you of neighborhood stores that sell a ton of cutesy stuff that you don’t necessarily need but that tend to be popular.
The company works with 2,000 brands and 15,000 shops. And the startup isn’t just connecting buyers and sellers, as it has a clear set of rules. For instance, the minimum first order is €100, which means that you can try out new products without ordering hundreds of items at once.
By default, Ankorstore withdraws the money 60 days after placing an order. Brands get paid upon delivery. And of course, buying from several brands through Ankorstore should simplify your admin tasks.
Ankorstore is currently live in eight countries — France, Spain, Austria, Germany, Belgium, Holland, Switzerland and Luxembourg. France is the biggest market followed by Germany. Up next, the startup plans to launch in the U.K. in 2021.
In many ways, Ankorstore reminds me of Faire, the wholesale marketplace that has raised hundreds of millions of dollars in the U.S.
“There are a number of different retail marketplaces connecting retailers with makers and brands. Where we believe we differ is in our clear focus on the independent shop owner, offering the tools and the terms that make it really easy and cost-effective to discover and access some of the most desirable up-and-coming brands,” Ankorstore co-founder Pierre-Louis Lacoste said.
Given that the startup is working with small suppliers, chances are they’re only selling their products in Europe. So there should be enough room for a European leader in that space that I would describe as wholesale Etsy-style marketplaces with a strong focus on curation.
Image Credits: Ankorstore
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Theodoric Chew, co-founder and chief executive officer of mental health app Intellect
Intellect, a Singapore-based startup that wants to lower barriers to mental health care in Asia, says it has reached more than one million users just six months after launching. Google also announced today that the startup’s consumer app, also called Intellect, is one of its picks for best personal growth apps of 2020.
The company recently closed an undisclosed seed round led by Insignia Ventures Partners . Angel investors including e-commerce platform Carousell co-founder and chief executive officer Quek Siu Rui; former Sequoia partner Tim Lee; and startup consultancy xto10x’s Southeast Asia CEO J.J. Chai also participated.
In a statement, Insignia Ventures Partners principal Samir Chaibi said, “In Intellect, we see a fast-scaling platform addressing a pain that has become very obvious amidst the COVID-19 pandemic. We believe that pairing clinically-backed protocols with an efficient mobile-first delivery is the key to break down the barriers to access for millions of patients globally.”
Co-founder and chief executive officer Theodoric Chew launched Intellect earlier this year because while there is a growing pool of mental wellness apps in the United States and Europe that have attracted more funding during the COVID-19 pandemic, the space is still very young in Asia. Intellect’s goal is to encourage more people to incorporate mental health care into their daily routines by lowering barriers like high costs and social stigma.
Intellect offers two products. One is a consumer app with self-guided programs based on cognitive behavioral therapy techniques that center on issues like anxiety, self-esteem or relationship issues.
The other is a mental health platform for employers to offer as a benefit and includes a recently launched telehealth service called Behavioural Health Coaching that connects users with mental health professionals. The service, which includes one-on-one video sessions and unlimited text messaging, is now a core part of Intellect’s services, Chew told TechCrunch.
Intellect’s enterprise product now reaches 10,000 employees, and its clients include tech companies, regional operations for multinational corporations and hospitals. Most are located in Singapore, Hong Kong, Indonesia and India, and range in size from 100 to more than 3,000 employees.
For many small to mid-sized employers, Intellect is often the first mental health benefit they have offered. Larger clients may already have EAP (employee assistance programs), but Chew said those are often underutilized, with an average adoption rate of 1% to 2%. On the other hand, he said Intellect’s employee benefit program sees an average adoption rate of 30% in the first month after it is rolled out at a company.
Chew added that the COVID-19 pandemic has prompted more companies to address burnout and other mental health issues.
“In terms of larger trends, we’ve seen a huge spike in companies across the region having mental health and wellbeing of their employees being prioritized on their agenda,” said Chew. “In terms of user trends, we see a significantly higher utilization in work stress and burnout, anxiety and relationship-related programs.”
Intellect’s seed round will be used to expand in Asian markets and to help fund clinical research studies it is currently conducting with universities and organizations in Singapore, Australia and the United Kingdom.
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