Here’s a roundup of recent stories on TechCrunch Europe:
— Internet publishing company Populis is expanding its network operations to South America with the acquisition of Cidade Internet, a popular Brazilian Web portal. Financial terms of the acquisition were not disclosed.
— Moscow-based Heverest.ru, an online retailer of sportswear, leisure and travel goods, has scored $4.3 million in financing from an unnamed “large” Russian investment fund and previous backer eVenture Capital Partners, bringing its total raised to $6.7 million.
— Fits.me, the Estonian “biorobotics virtual fitting room” startup for e-commerce clothing retailers and shoppers, has been around for a while. We first covered them in 2010 when they secured €1.3 million, taking their total cash to €2.6 million.
They’ve now taken another €1.5 million, taking their funding to €4.1 million. Fits.me lets customers “try on” clothing before buying from online clothes retailers.
— Berlin-based game deals provider HitFox has purchased Chili Entertainment, thus adding the latter’s game advertising network ad2games to its own game marketing portfolio. Chili Entertainment was previously majority-owned by Gameforge, but the financial terms of the deal were not disclosed.
— Israeli startup Appoxee has raised an undisclosed amount of funding from early-stage investment firm Cyhawk Ventures, and has opened its gates to all.
In this economic climate, many small businesses do not qualify for loans based on the standards imposed by banks and financial institutions. For fledgling businesses, the establishment doesn’t have enough cash flow, revenue or credit to qualify for a loan. Many times, entrepreneurs have to put up personal assets as collateral for loans, which can be problematic and risky. The fact is working capital is difficult to get from banks unless a business has perfect credit.
Capital Access Network (CAN), a company that gives small businesses access to credit and working capital and helps solve the problem outlines above, is announcing this morning that it has raised $30 million from Accel Partners. As part of the transaction, Accel partner, Kevin Efrusy will join Credit Access’s board of directors, and Accel vice president, John Locke, will join as an observer.
CAN constitutes the largest, non-bank alternative capital provider to small businesses in the US. The company uses its own real-time platform and risk scoring models to provide capital to small and medium-sized businesses in the US and Latin America and has funded over $2 billion in capital to SMB’s under the brands NewLogic Business Loans and AdvanceMe. This represents roughly 100,000 distinct small business finance transactions. This year alone, CAN will fund over $600 million in loans to small businesses.
CAN uses a variety of data points to deem a business worthy of credit or capital apart from the traditional criteria. CAN’s proprietary underwriting algorithms will churn through its vast data stacks of historical merchant demographic, firmographic, psychographic and social and behavioral profiles seeking and seasoning new behavioral and synthetic risk indicators and recombining those indicators into new risk scorecards.
For example, CAN will look at frequency of sales (not just how much), inventory access, eBay seller rating, tax returns and other information. In terms of interest, the company uses a more unorthodox, merchant-friendly way of collecting money on top of a loan. If an online violin store needs $30,000 in working capital to purchase inventory, CAN will loan the money, but the borrower will need to pay back $35,000 to CAN over 12 months.
Typically, CAN will give merchants and businesses anywhere from $2,500 to $250,000 in working capital. Customers range from medical practices, to shoe stores to auto repair shops to clothing, accessory and home product online retailers.
CAN CEO, Glenn Goldman, tells me that the extra amount the borrower has to pay to CAN depends on risk of the loan, how long it will take for the loan to be paid back, the amount of capital lent and other factors. But he says many times, the amount CAN charges is less than any interest rate from a bank. And 75 percent of customers renew their funding. In some cases, repayment can be fairly simple. Goldman points to the example of one online merchant who chose to automatically forward a small percentage of sales from its payment processor directly to CAN to repay the loan every month. If sales were lower than usual that month, CAN would lower the amount needed to pay.
And Goldman explains that behavioral risk scoring, rather than just examining a small business owner’s FICO score, allows the company to ‘yes’ to a higher percentage of SMBs than traditional sources while mitigating losses.
For Accel, the investment marks the continuation of a thesis of investing aggressively behind companies that are enabling small businesses to grow faster, says Efrusy. He cites investments in Groupon, Etsy, 99 Designs, Braintee, DropBox as just a few of the Accel-backed companies that are helping are “giving small businesses tools to thrive.”
“From our work with small businesses, it’s clear that one of the most pressing issues for merchants is access to credit and working capital,” Efrusy said. “Especially today, banks are unable to play effectively in this market. Large institutions cannot reach, evaluate, or serve small businesses efficiently. Many newcomers to the finance space are constrained by limited access to and very high-cost capital combined with high portfolio losses given unseasoned risk scoring models. Capital Access Network has by far the strongest team, scale, and data-driven approach to this market.”
Goldman says the new funding will be partly used for boosting and redesigning the online merchant experience on CAN. By April, the lender will feature new user interfaces, merchant portals and online approvals.
As Efrusy explains, there’s a huge amount of disruption taking place in the online lending space, and CAN is in a great position to help small businesses grow with working capital. Kabbage is another startup that is also looking to provide capital to online merchants, and ZestCash is doing something similar on the consumer end of the spectrum.
Jeff Atwood, the co-founder and CTO of Stack Exchange, a network of free, community-driven Q&A sites mostly about programming and gaming, and Stack Overflow, is stepping down from day-to-day operations at the beginning of next month.
Atwood writes on his Coding Horror blog that startup life was having too much of an effect on his family (Atwood has a son and twin daughters).
Startup life is hard on families. We just welcomed two new members into our family, and running as fast as you can isn’t sustainible (sic) for parents of multiple small children. The death of Steve Jobs, and his subsequent posthumous biography, highlighted the risks for a lot of folks.
…
You may have more discipline than I do. But for me, the mission is everything; I’m downright religious about it.
Stack Overflow and Stack Exchange have been wildly successful, but I finally realized that success at the cost of my children is not success. It is failure.
I concur with Instapaper creator Marco Arment, who says Atwood clearly has a healthy perspective on life, and others praising him for the decision, though maybe that’s because I became a first time father myself not too long ago.
You may also want to check out the Hacker News thread on the topic.
Stack Exchange has raised $18 million from Union Square Ventures, Index Ventures, Spark Capital and individual investors like Ron Conway, Naval Ravikant, Chris Dixon, Caterina Fake, Joshua Schachter and many more.
Commenting about the move some more on Twitter, Atwood says his decision to leave Stack Exchange’s day-to-day ops has also to do with his “personality and temperament”.
He adds: “Either I’m all the way in, or all the way out”.
Atwood blogs that he doesn’t know what’s next, though it seems he’s already pondering about it:
What’s next for me?
I honestly don’t know. I do know that I love the Internet, and I remain passionate as ever about making the Internet better – but right now I need to be with my family. In six months, perhaps I’ll be ready to choose another adventure.
Also check out our video interview of the other Stack Exchange co-founder, Joel Spolsky: (Founder Stories) Joel Spolsky On Startups: “Have A Co-Founder Otherwise You’ll Go Insane”
Judging from every single TechCruncher’s inbox right now word on the street, there are job poachers amongst us. That’s cool, all’s fair in love and war and technology recruiting, right? Except when it’s not which, in a world filled with people who just want to win at any cost, is pretty damn often.
But let’s pretend for a second that you’re not as fantastic and amazing and desirable as a TechCrunch writer. What happens if you want to be poached!? Well, If you’re actively looking to be recruited like the rare species of programming fauna that you are, look no further than JobPoacher, which allows people who are in the market for a new employer to advertise as such, anonymously.
Just plug in your current salary, desired salary, email and locale, and JobPoacher does the rest. “I was inspired by the news of anti-poaching ‘gentleman’s agreements’ in the news a few weeks ago between high-tech companies,” explained JobPoacher creator John Everett about the inspiration behind the project, ‘I thought to myself, ‘I bet a lot of people out there would love to get poached from their jobs.’”
Indeed! So far the site has seen over 500 job postings, and over 100 emails have been sent to [the] postings from recruiters in the past 24 hours, according to Everett.
So how you like them apples?