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Georgia Tech among colleges and universities with best-paid employees

Here's how Georgia Tech's employee pay compares to other top schools around the nation......»»

Category: topSource: bizjournalsJan 24th, 2023

They Were Told They’d Find Good Tech Jobs. Now They’re Being Hounded for Thousands of Dollars

Tech boot camps dangled the prospect of well-paid jobs in tech, 'debt-free.' Students were left owing thousands instead The very idea that she, a Black person living in Alabama, could make $75,000 a year in the tech industry after just a 10-week boot camp is what drew Aaryn Johnson into Flockjay. The ad for the boot camp specializing in tech sales followed her around social media: “This is the bullet train you don’t want to miss! It’s recession-proof even in the midst of a Global Pandemic.” Even better, according to the company’s promotional material, students didn’t have to pay a cent in tuition to Flockjay until they landed a job that paid at least $40,000 a year. [time-brightcove not-tgx=”true”] It seemed too good to be true. Johnson assumed the scheme was fake until one day she saw on Twitter that Black celebrities like Serena Williams and Will Smith had invested in Flockjay—and that the Walnut, California–based startup pledged to help people from underrepresented backgrounds get into the tech industry. When Johnson started an application and then abandoned it, a Flockjay sales rep called her and made it sound like the program was exclusive, she says, but that she had a good shot at getting in, because she’d worked in sales in the past. “They said, ‘You’re going to kill it; you’re going to make so much money.’ ” When she learned that Flockjay was about to close admissions for the class, Johnson completed her application, signed an enrollment agreement, and began the program in August 2021. Flockjay delivered on little of what it promised, Johnson says. The curriculum was so easy that her 7-year-old nephew could have done it, she says. Students were taught how to make posts on LinkedIn—something most all of them knew—including a homework assignment to post about how much they were enjoying Flockjay’s program. Classes had them act out selling tech products to one another, much in the same way children pretend to sell things at a grocery store, with no simulation as to what it would actually be like in the real world. Within Johnson’s first two weeks of the program, the representative who had urged her to join was laid off, along with half of Flockjay’s staff. The result was that the one-on-one coaching students were promised was effectively removed from the program. Johnson had entered the lawless arena of tech boot camps; These camps are among thousands of unaccredited schools that pitch their services to students through heavy marketing spends and often don’t deliver on the promises made in their advertising pitches. Unaccredited schools have long flourished in the U.S., but this new wave of schools does something different: attracting students by offering a relatively new funding model called an income share agreement (ISA). They pitch these ISAs as a way to access education without taking out a loan, but students like Johnson soon find out that these agreements can leave them owing a lot of money without the good career prospects they were promised. Nor are these students eligible for any of the Biden Administration’s planned federal loan forgiveness programs, because ISAs are offered not by the U.S. government but by private companies. Now, a year after enrolling, Johnson is getting hounded by Meratas, the company responsible for collecting on her Flockjay tuition, despite the fact that Johnson says she did not receive the education Flockjay promised. She finished the course, since the company had pledged to match her with hiring partners once she graduated, but after waiting for weeks to be connected with a company, she hustled and found her own job in sales. She never mentioned Flockjay to her new employer. She doesn’t make anywhere near the $75,000 salary the company mentioned in its promotions. Her sales job, while technically in the technology industry, is basically telemarketing, she says: “This is literally the most soul-sucking job I’ve had in my entire life.” Flockjay was cited in October of 2020 by California’s Bureau for Private Postsecondary Education for operating without approval, Johnson has since learned, and ordered to cease advertising to students and enrolling them. The company has not complied. Blair, the company that gave Johnson the money for her tuition, no longer works with Flockjay; they have turned over her financial debt to Meratas. “Their shtick was that it was about getting Black people into tech—but over the 10 weeks, they didn’t train us for any real-life situation,” says Johnson. “There were so many people who tried to get jobs after and could not.” Boot-camp boom In the turbulent economy of the pandemic era, few industries seem as attractive as the tech sector, where people can earn high salaries, work remotely, and feel with some degree of certainty that they’re in a growing field. But tech can also seem opaque to outsiders. After all, it’s much harder to understand what tech employees do all day than it is to picture what happens in a car factory. Boot camps like Flockjay attract students by promising to demystify tech and get students high-paying jobs without having to take on the debt of attending a four-year college. Business has been booming. Around 100,000 people were enrolled in tech boot camps in 2021, according to the research firm HolonIQ, a fivefold increase since 2015. These businesses generated $1.2 billion in revenue in 2020, six times what they did in 2015. Boot camps like Flockjay have flourished over the last few years in part because they partner with companies that offer ISAs, which give students upfront money for tuition if they agree to repay the money once they’re earning a certain wage. Students can either fork over a certain percentage of their salary or a dedicated lump sum every month until they’ve paid back the amount they’ve borrowed—or more, depending on the agreement. ISAs have been used at accredited schools, like Purdue University, but they’re especially popular for nonaccredited schools like boot camps, which often promote these financing arrangements in their sales pitches, since their students cannot access federal student loan dollars. On the surface, the symbiotic relationship between boot camps and ISA providers seems like a smart way to get people into technology. Boot camps are expensive, with tuition ranging from $3,000 to $15,000, and ISAs enable students to pay that tuition without taking out private student loans, which usually have high interest rates and fees. ISAs often behave as servicers, providing students the money that allow boot camps to operate, and then handling the details of repayment so that schools can focus on education. ISAs have better terms than private loans, but not as much flexibility as federal student loans. If boot camps didn’t exist, ISAs might struggle to find a market. “There was a lot of hope that this new emerging high-tech world would save us.” ISA proponents say the financial product allies students, the school, and the ISA provider, since each has a vested interest in a student graduating and making a good salary. “Because a Flockjay education can be financed via an income share agreement, the incentives of the school and the student are highly aligned—Flockjay is a blueprint for College 2.0,” Romeen Sheth, a Flockjay investor, wrote on Medium in 2019, explaining why he had invested in the company. (Sheth did not respond to a request for comment for this story.) But groups that advocate on behalf of students say ISAs are not the cure-all solution that proponents say they are, even as the companies continue to sell students the promise of a swanky future in the high-flying world of tech. The example of Flockjay, showered with praise and funding by venture capitalists and celebrities, even as students say the company ultimately took their money and delivered little in return, shows the risk of allowing both ISAs and for-profit tech schools to operate without regulation. “There was a lot of hope that this new emerging high-tech world would save us,” says Ben Kaufman, director of research and investigations at the Student Borrower Protection Center, which advocates for students, and which provided support to Flockjay students who had complaints about the company. “But there’s a long history of fly-by-night con men setting up for-profit educational enterprises, and then finding ever more exotic and dangerous forms of credit to facilitate them.” Flockjay isn’t the only company that has produced crops of angry students. Three students sued the coding boot camp Lambda School in 2021, alleging that the school misrepresented its job-placement rates and how its ISA worked. They reached a confidential settlement in July, but a fourth such claim remains in court. A lawsuit filed this summer in Atlanta alleges that an online programming boot camp called Clever Programmer charged students tens of thousands of dollars for services it did not deliver. And Washington State filed a lawsuit against tech sales camp Prehired, saying its ISAs are invalid because the company operated without a license, and that the company misled students about its programs. Prehired has denied the allegations in the complaint. Boot camps and ISAs are arguably creating a new generation of debtors, even as the nation grapples with how to handle its existing student debt crisis. President Biden said last month that he planned to wipe away up to $20,000 in federal student loan debt for some borrowers, and earlier this year, the Department of Education said it would forgive billions worth of loans given to students who attended schools like Corinthian Colleges Inc. that it found had misrepresented borrower’s employment prospects. But these boot camps and the ISAs that enable them may be creating some of the same problems—and debt burdens—that the Biden administration is seeking to solve. There’s not a whole lot that Flockjay alums like Johnson can do about their complaints. Some students filed a notice with California’s Workforce and Development Agency in July, suggesting they would file a lawsuit against Flockjay if the agency does not take action. Many more students are like Johnson—embarrassed that they signed up for Flockjay, and just wanting to move on. “This was a scam, but you feel stupid because you fell for it,” she says. Flockjay did not respond to questions for this story, but the company did provide a statement, attributed to Bryant Lau, its head of demand. “We stand by the success our hundreds of graduates have had and the incredibly hard work of our staff when we ran our sales academy,” it says. Meratas did not respond to a request for comment. Not all boot-camp students have stories like Johnson’s. There are many boot camps that do provide a solid tech-focused education, and that have helped students get high-paying tech jobs. These often teach specific skills, such as programming languages like Python, or computer-science skills like encryption and system architecture. Educational programs that are not accredited can still provide students useful skills that will prepare them for the job market. But research indicates that students with industry-recognized credentials like a certificate and degree—credentials that Flockjay and many other tech sales boot camps don’t offer—are most useful for preparing students for the job market. The lure of ‘debt-free’ college To say there’s a student debt crisis in America is a vast understatement. Income-sharing agreements have sprung up as an alternative to taking on this debt. The pitch: ISAs shift the risks of poor workforce outcomes from students to lenders, since lenders only get repaid if the students find a good-paying job. “This is true ‘debt-free’ college,” former Indiana governor Mitch Daniels wrote in 2015, when pitching ISAs as a solution to the student debt crisis. Daniels launched one of the first and most high-profile ISAs at Purdue University, where he was then president, in 2016. The program, called “Back a Boiler,” gave students a portion of their tuition in exchange for the students’ agreeing to pay back a percentage of their future income for a period of time after they graduated. The program partnered with a startup called Vemo Education, which in 2017 raised $7.4 million from venture-capital firms. (In 2022, Purdue suspended its Back a Boiler program amid complaints that it had misled students about how much money they’d owe after graduating. Daniels also announced in June that he was stepping down as Purdue’s president.) ISAs have long been popular at private universities in Europe and Latin America, and U.S. entrepreneurs began founding ISA companies as early as 2012 to fill the gap between federal student loans and private loans, which often have high interest rates and inflexible payback terms. Many of the earliest ISA companies, including Upstart and Pave, have since switched to offering traditional loans. In 2019, $250 million in income-share agreements were created, and 40 colleges and boot camps either offered or were developing ISA programs, according to Edly, an education lending platform, which estimated before the pandemic began that $500 million would be generated in 2020. Flockjay talked about the potential merits of ISAs as part of its funding pitch to investors. The angle paid off; in 2019, Flockjay received funding from startup accelerator Y Combinator; Dreamers VC, the venture capital fund co-founded by Will Smith; and Serena Williams’ investment firm Serena Ventures, which Williams has recently said she plans to focus on when she retires from professional tennis. (Serena Ventures did not respond to requests for comment. A Dreamers VC representative says that Flockjay was one of the few boot camps proactively engaging in communication with California regulators.) “It’s really smoke and mirrors they use to trap people in expensive debt that lasts longer than they think it will.” Advocates like the Student Borrower Protection Center (SBPC) say the way ISAs and boot camps became popular—by marketing themselves as a debt-free alternative to college—was misleading. “THIS IS NOT A LOAN,” a Flockjay deferred-tuition agreement seen by TIME says, and other ISAs clearly state that they are not loans. But ISAs behave very much like loans, with similar terms and fees, and sometimes require borrowers to pay back much more money than they’ve originally borrowed. ISAs often have payment caps that limit the amount a student has to repay, but these can be three times as high as the amount borrowed, according to the SBPC. In some cases, if borrowers want to pay off their ISA early, they have to pay the amount of the payment cap as a penalty, rather than the initial tuition amount—as was the case with a Purdue student who took out an ISA for $15,000 and was told she’d have to pay $37,500 if she wanted to close her contract, according to the Indianapolis Star. “The products have this facial element of seeming really simple and elegant,” says Kaufman, of the SBPC, “but it’s really smoke and mirrors they use to trap people in expensive debt that lasts longer than they think it will.” And while student-borrower advocates agree that ISAs are probably a better alternative than private student loans, they say that any product pitched as a money-making operation to investors won’t be a good deal for students. Federal student loans do not earn the government profits. “The whole premise is that this will generate a profit for somebody, whether it’s an investor or a boot camp,” says Jessica Thompson, a vice president at the Institute for College Access and Success. “Since when does anybody think that students are going to come out on the better end of that deal?” Neither ISAs nor unaccredited boot camps are closely regulated, and that’s created many of the problems students like Johnson have encountered. Students can take out ISAs for schools that don’t offer a good educational product and mislead them about student outcomes—allegations made in numerous lawsuits against boot camps—and then still be required to pay them back. Flockjay, for instance, told students in promotional materials that the average full-time job offer from companies on its platform was $75,000. Yet according to the company’s own 2021 enrollment agreement, out of 114 students who began the program in 2019, only 52 were eligible for graduation, and of those 52, just 22 were in jobs making between $45,000 and $50,000. The rest were making less than $45,000 or didn’t report their salary information. Students like Johnson and Brianna Kirby, a Black woman who started the program in June 2021, say there were many more discrepancies between what Flockjay initially promised and what it delivered. Though these complaints are more focused on the quality of Flockjay’s educational product than the terms of its deferred tuition agreement they signed with Blair (now enforced by Meratas), students say they agreed to the tuition terms because they were told they would make good money after graduation. They say they are now saddled with debt without the benefits they expected. Courtesy Brianna KirbyBrianna Kirby started the Flockjay program in June 2021. Flockjay’s enrollment agreement said the company would give students coaching for interviews and perfecting their résumés, and that its career-services team would act as a liaison between hiring partners and graduates, but after the August 2021 layoffs, most of the career-services team was gone. The enrollment agreement required students to schedule mock interviews with the career-service team, but after the layoff, students would sign in to scheduled mock interviews and no Flockjay staff would ever show up, according to online messages TIME has viewed between Kirby and other students. The enrollment agreement prohibited students from looking for jobs on their own for a set period of time after graduation, so that Flockjay could match them with hiring partners, who paid the company a fee, but when those hiring partners didn’t materialize, students were stuck with no permitted way to find work. The résumé coach assigned to Kirby frequently entered spelling and other errors into her résumé. When students were sent assignments to perfect their résumés, these often weren’t graded on time, Kirby says, even though this significantly slowed down the job -search process. And students were asked to complete a “Capstone Project” to promote Flockjay and recruit new students, even though Flockjay was supposed to be teaching students business-to-business, not business-to-consumer sales; the winning students received an a $100 prize, according to graduates who talked to the Student Borrower Protection Center. After the August layoffs, students in Kirby’s and Johnson’s classes began to discuss the lax student services on Slack, wondering if they could take legal action. “I’ll be honest with you, if I wasn’t financially obligated I could care less about this whole ordeal,” one student wrote in the Slack channel. “However, I am stuck $7k.” After talking with other students about how they felt let down by Flockjay, Kirby and Johnson both closed down the bank accounts to which they had given the company access. (California law says that a note of debt for an educational program is not enforceable if the institution did not have approval to operate when that note was executed; it’s unclear how this would affect the debt of students who live in other states.) Like many other students, Kirby ended up finding a job on her own after graduation, without the help of Flockjay. She does not make anywhere near $75,000. Meratas has been sending her so many emails that she’s started marking them as spam. “Flockjay didn’t make good on their contract with us; they target vulnerable marginalized communities, and left us in the wings with no transparency or communication,” she says. “Now we’re stuck making full payments despite feeling shorted.” One former Flockjay worker says she thinks the company’s focus on increasing its student base is what led to its problems. Lynn Meadors was hired as a Flockjay résumé writer in early 2021. When she began, Flockjay had six classes of graduates, each around 25 students, but each month, the classes got bigger and bigger, she says. By the time she left, in November 2021, the classes were about four times the size they’d been in the beginning. That’s despite the company’s having about half the staff it had before August of that year. Meadors believes Flockjay was trying to add as many students as possible to increase its revenue. “Students were being recruited primarily because they could check a box or fill a seat in the class,” she says, “rather than because they had the potential to be successful.” When students didn’t complete assignments, staff would be encouraged to graduate them anyway. Because Flockjay’s “partner companies” had to pay them a fee whenever the companies hired a student Flockjay had introduced to them, students were told not to seek jobs on their own, so Flockjay could get the commission. “I do think there were a lot of predatory aspects of Flockjay,” Meadors says. “They made it sound like if you went through Flockjay, you were almost guaranteed to find employment, but I know many students who have not found work or who have had to accept jobs in totally different fields and are still now paying Flockjay.” Most of the students were people of color, Meadors says, and Flockjay’s model of getting current students to recruit new ones was successful at making people feel comfortable signing up, even if class quality was declining. Students told her they’d joined because they saw friends or friends of family members posting about their experience, or saw ads from alumni of color that said how successful they’d become in tech. “The thought that any person who entered the program could have a successful tech career is flawed,” Meadors says. “In reality, the majority of people were not successful.” Previous Flockjay students have reported better experiences with the program. Brenna Redpath’s son went through Flockjay in 2020, and she says he flourished in the program. He’s now working in tech sales and makes $80,000, she says, a path that motivated Redpath to enroll in Flockjay in August 2021. Her son’s class was about one-third the size that hers was, she says. Her son had a career coach dedicated to helping him find a job; Redpath says most of the career counselors who were supposed to be available to her had been laid off, with only about two for every 100 students. Redpath, who is 56, had a few interviews after graduating from Flockjay, but she did not find a tech job. She has since found work at a nonprofit that has nothing to do with the tech industry. But since she is making more than $40,000, she and her husband have been anxiously eyeing their bank account, which they did not close down because it’s linked to many of their other monthly payments. She worries Meratas will start collecting soon on her ISA. “I believe in the mission of Flockjay,” says Redpath, “but I watched them not deliver for people who could use it.” Policing a new financial product Since they’re structured differently from loans, ISAs have been difficult for regulators to handle. Regulations often require that lenders disclose the amount of interest a loan has accrued, for example—something ISA providers say would be difficult to calculate. Until the Consumer Financial Protection Bureau entered into a consent order with Better Future Forward, a nonprofit ISA provider, in 2021, some ISA providers weren’t even certain they had to adhere to the Truth in Lending Act, which governs which disclosures student loan borrowers receive. Since the consent order requiring the nonprofit to follow the Truth in Lending Act and the Consumer Financial Protection Act only addresses Better Future Forward and its ISAs, many providers say they still don’t know what federal regulations apply to their own ISAs. Since 2014, Sen. Marco Rubio (R-FL) has introduced numerous Congressional bills that would regulate ISAs, but they have never gone anywhere. This year is no exception—in July, Rubio and three colleagues introduced a bipartisan bill they say would help regulate ISAs. The bill would prevent ISA contracts from being longer than 20 years, and would allow students making below a certain income to be exempt from making payments toward their ISA. The bill is endorsed by Better Future Forward’s CEO Kevin James and Purdue’s president, ISA champion Daniels. But SBPC’s Kaufman says it would “enshrine into law all the worst aspects of ISAs,” and allow providers to continue to claim that these agreements aren’t loans. It may be difficult for the industry to grow until policymakers create a system of regulatory oversight that prevents abuse of ISAs, says James, of Better Future Forward. He argues that used correctly, ISAs can be a powerful tool. Better Future Forward, for instance, offers ISAs only to certain students who attend certain handpicked accredited universities in Minnesota, Wisconsin, and Illinois. The company has worked with regulators in an attempt to create new laws that would make sure that ISAs could be discharged in bankruptcy, unlike student loans, and that students don’t have to repay if they make below a certain income. The U.S. higher educational system needs programs that expand access to financial support and that are built around students’ success, James says. Without access to ISAs, students could further become trapped in debt, since the current loans system is broken, he says. The loan-forgiveness programs the Biden Administration is offering “are patches on a broken system—doing little to ensure history won’t repeat itself,” James wrote in a June 2022 paper laying out his preferred regulatory approach. Since there is little meaningful federal regulation, ISA companies have to comply with different regulations from 50 different states, making it even harder for them to operate, according to the CEO of one company that has recently stopped providing ISAs, and which is not authorized to speak on the record because of pending litigation. The startups that offer ISAs don’t have a lot of capital, and can either spend their money on ensuring they comply with every state-level regulation, or they can spend it on its educational product, or on marketing. “Clear rules would have probably been the best thing that could have happened to us,” the CEO says. A lack of regulation has forced many ISA companies to pivot to other business models, which leaves students with few options other than private loans, which have extremely high interest rates. Indeed, many of the companies that have tried to offer ISAs in the past decade have since left the market because of a lack of regulation. Flockjay itself has since pivoted from tech boot camps, and says it is now focused on helping its graduates and other tech sales workers get better at the jobs they already have. The company is now pitching this as a new service to former students, even though students say they were told they’d receive ongoing alumni support for life as part of the program they had already paid for. The example of Flockjay students indicates that the state regulation is not particularly effective. Though California’s Bureau for Private and Postsecondary Education (BPPE) fined Flockjay $15,000 in October of 2020 for operating without state approval, a year later the BPPE lowered the fine to $10,000—roughly equivalent to the tuition of 1.25 students. The BPPE did not take any further regulatory action against Flockjay. The school still does not have approval to operate in the state of California. California’s Department of Consumer Affairs, which oversees the BPPE, said in a statement that Flockjay appealed its citation for operating without approval; when its appeal was denied, the school submitted evidence in November 2021 that it was no longer operating. The regulator does not confirm, discuss, or comment on investigations, the statement said. BPPE refers matters related to financing to the Department of Financial Protection and Innovation (DFPI.). In a statement, DFPI said: “It is the DFPI’s stance that ISAs issued by schools not licensed or registered with BPPE are unenforceable and cannot be serviced. In August 2021, Meratas, which took over servicing Flockjay’s ISAs in June, entered into a consent order with the DFPI. The consent order states that Meratas will not service any ISAs “that have been determined or declared unenforceable or void by the DFPI or any regulatory agency.” But students including Kirby, Johnson, and Redpath say they are getting emails from Meratas trying to collect on their Flockjay ISAs. They say they’ve also been offered “discounted tuition” offers, in which their debts will be wiped out if they pay $6,000 right away. In August, Redpath emailed Flockjay asking to speak to someone “who can have a conversation about the contractual problem of Flockjay holding teaching for my batch while legally being banned from doing so by the Department of Education.” She noted in the email that many students were unhappy about the lack of career support services, and that their class was three times bigger than previous classes had been. She received an email back the next day. “You can continue to defer your tuition payments until you get a job exceeding $40,000/annually,” a Flockjay customer-success manager wrote. “Per the DTA [deferred tuition agreement] this is only deferred until you get any job.” —With reporting by Simmone Shah.....»»

Category: topSource: timeSep 8th, 2022

Strategic Education (STRA) Boosts Workforce Edge Degree Programs

Strategic Education (STRA) partners with Dollar General to boost Workforce Edge's employer-paid degree programs. Strategic Education, Inc. STRA or SEI’s unit Workforce Edge inked a deal with Dollar General to provide the latter’s employees with employer-paid degree programs offered at Strayer and Capella Universities.The partnership will help Dollar General’s full-time employees to take advantage of the generous tuition assistance benefits, which began on Apr 4. The employees will be able to gain affordable professional and personal development degrees as well as reimburse eligible educational expenses to eliminate out-of-pocket tuition costs. They may utilize a yearly tuition assistance allocation to fund a new degree program at a higher education institution of their choice.Karl McDonnell, president and CEO of SEI, said, "Dollar General continues to distinguish itself in the marketplace, and by announcing this comprehensive tuition assistance partnership, the company remains well-positioned to recruit and retain skilled employees. We’re looking forward to embarking on this journey with Dollar General as they empower their employees with access to educational opportunities."SEI’s Support to EmployersStrategic Education supports more than 1,000 employers to upskill and retain their workforce and provides pioneering education solutions to beat the competition. With increasing demand from employers for job-ready candidates to address the skills gap in the United States, SEI has been providing various workforce-development programs.SEI’s Education Technology Services segment is focused on developing and maintaining relationships with employers to build employee education benefits programs. The segment helps employer partners through Workforce Edge — a platform that provides employers a full-service education benefits administration solution — and Sophia Learning — which enables lower-cost education benefits programs through the use of low-cost online general education courses recommended by the American Council on Education for credit at other colleges and universities.Launched in January 2021, Workforce Edge helps employers offer higher education options that are relevant, innovative and affordable to their workforce. During fourth-quarter 2021, the company introduced its new Workforce Edge product. With a coverage comprising Strayer and Capella Universities and schools from Noodle Partners, the company expects this platform to serve as a low-cost source of new enrolments.In 2021, Workforce Edge signed 32 corporate agreements and collectively hired about 650,000 employees. SEI remains optimistic about these initiatives.Share Price PerformanceShares of the company have increased 18.8% against the Zacks Schools industry’s 1.7% fall so far this year. The company is benefiting from Strayer and Capella Universities’ convenient, accessible and flexible educational programs.Image Source: Zacks Investment ResearchYet, it has been experiencing lower demand for its services caused by a higher unemployment level. The company noted that the impact of rising unemployment was largely seen at Strayer due to the undergraduate student mix, including many first-time college students. Also, it has been witnessing increased competitive intensity, which resulted in advertising inflation and lowered the yield of marketing investments. Owing to these headwinds, the company now expects that the average total enrolment for SEI could be down in the mid-single digits in 2022.The recent move is likely to aid the company’s top line and enrolment growth in the future.Zacks Rank & Key PicksSEI currently carries a Zacks Rank #5 (Strong Sell).You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Lincoln Educational Services Corporation LINC: Based in West Orange, NJ, this company provides career-oriented post-secondary education services to high school graduates and working adults in the United States. Improved operating performance at its campuses, consolidating facilities, a new welding program, a reinvigorated corporate partnership and changes in the admissions team have been favoring Lincoln.Lincoln currently carries a Zacks Rank #1. The Zacks Consensus Estimate for 2022 earnings has been revised upward from 58 cents to 63 cents in the past 60 days. The projected figure indicates a 39.4% fall from the year-ago quarter’s levels.Universal Technical Institute, Inc. UTI provides technical education training in automotive, diesel, collision repair and refinishing, motorcycle, marine and personal watercraft technologies.The company’s expected earnings growth rate for fiscal 2022 stands at 100%. Universal Technical currently has a Zacks Rank #1.TAL Education Group TAL: Based in Beijing, the company provides tutoring services to K-12 students in the People's Republic of China.The company currently carries a Zacks Rank #2 (Buy). The Zacks Consensus Estimate for fiscal 2023 earnings has improved almost 20% in the past 30 days. This suggests a 53.8% year-over-year growth. Just Released: The Biggest Tech IPOs of 2022 For a limited time, Zacks is revealing the most anticipated tech IPOs expected to launch this year. Concerns about Federal interest rates and inflation caused many private companies to stay on the bench- leading to companies with better brand recognition and higher growth rates getting into the game. With the strength of our economy and record amounts of cash flooding into IPOs, you don’t want to miss this opportunity. See the complete list today.>>See Zacks Hottest IPOs NowWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Strategic Education Inc. (STRA): Free Stock Analysis Report Universal Technical Institute Inc (UTI): Free Stock Analysis Report Lincoln Educational Services Corporation (LINC): Free Stock Analysis Report TAL Education Group (TAL): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research.....»»

Category: topSource: zacksApr 5th, 2022

25 HR leaders building the world"s most innovative, inclusive workplaces amid upheaval in corporate America

Meet the human-resources managers helping employees learn critical job skills, develop into effective leaders, and advance quickly in their careers. Kazi Awal/InsiderInsider compiled its third annual "HR Innovators" list of 25 prominent figures. Some of this year's most innovative HR leaders (shown above, starting from the left) are Sara Cooper, Karsten Vagner, Shirley J. Knowles, and Elaine Mak.Rachel Mendelson/Insider The "Great Resignation" and the transition to hybrid work have put tremendous pressure on HR. Insider put out an open call for talent heads who are leading successfully during the pandemic. Our list spans industries and includes human-resources leaders from Cisco, Maven, and Wiley. Insider recently undertook a search for human-resources leaders executing the most creative and ambitious plans for their companies.For a third year in a row, we asked our readers to tell us about HR stars. Then, we picked 25 who really impressed us. We looked for execs who bettered their companies through new policies regarding worker safety and wellness amid the pandemic, the "Great Resignation," and louder calls for diversity and inclusion. These talent professionals work across industries and at organizations of all sizes, including Cisco, Meta, and Wiley.Women hold most HR positions, and our list reflects that, with Insider featuring only a handful of people who are men or nonbinary. This was unintentional but not surprising.With workplace dynamics in flux, these executives are shaping the future of corporate America. They're building long-term policies around flexible work, finding new ways to attract talent, and addressing inequities that leave certain demographics at a disadvantage.Their accomplishments include promoting 30% of the workforce in one year, building early-career programs for underrepresented talent, and helping employees find programs to meet their educational goals. Cassie Whitlock, BambooHR's director of HR, said, "The pandemic elevated core 'human' needs that have always existed in business but were, for some, easy to ignore."In no particular order, here are the top 25 innovators in HR and their exclusive insights on reimagining work. These responses have been edited for clarity and brevity.Shirley J. Knowles, chief inclusion and diversity officer at Progress SoftwareShirley J. Knowles.Courtesy of Shirley J KnowlesCompany: Progress is a software company that offers custom software for creating and deploying business applications.Skills they've used to be successful in HR: Authenticity is an important core value. In conversations about diversity and inclusion, I use real-world scenarios — including my own experiences — to illustrate why this work is essential. I don't use buzzwords that many people are unclear of. I talk about things in a way that anyone can understand.How they've supported employees during the coronavirus pandemic: I have taken a particular interest in the well-being of our employees, specifically their mental and emotional health. We offer fitness classes, meditation sessions, and mental-health training led by a Harvard professor who is also a licensed mental-health counselor.By offering exercises that focus on burnout, avoiding isolation, and finding meaning in work and one's personal life, I am helping employees find balance while trying to navigate through the ongoing pandemic.Francine Katsoudas, executive vice president and chief people, policy, and purpose officer at CiscoFrancine Katsoudas.Courtesy of Francine KatsoudasCompany: Cisco develops, manufactures, and sells networking hardware, telecom equipment, and other IT services and products.How they've been supporting their company's diversity, equity, and inclusion efforts during the pandemic: In early 2020, right before the pandemic, we established our Social Justice Beliefs and Actions at Cisco outlining our ambitious goals for addressing injustice and establishing a framework to hold the company accountable to its commitments.Although we didn't know it at the time, this blueprint would guide our approach to social-justice issues that arose over the course of the pandemic. While these beliefs and actions were first focused on supporting the Black community, they have become an invaluable working guide to how we as a company respond to injustice and address inequities overall.Initiatives they've taken to address the effects of the Great Resignation: Every quarter, we conduct "engagement pulses" to check in with employees about top-of-mind issues and concerns. We've found that employees who aren't invited to participate in an engagement-pulse meeting are 21 times as likely to leave Cisco than their invited counterparts.We've also done more work to understand people's career trajectories within Cisco, examining the velocity of promotions for groups and individuals. As a result, we're proud to have promoted 30% of our workforce over the past 12 months.Books, podcasts, shows, or movies that inspire them: I'm reading "Black Magic: What Black Leaders Learned from Trauma and Triumph'' by Chad Sanders, who is powerful and inspiring. It was recommended to me by a leader here at Cisco. He said that it reminded him of his experience in corporate America. So by reading it, I have gotten to feel more proximate to his experience and journey, and that has been a wonderful gift.McKensie Mack, CEO at MMGMcKensie Mack.Courtesy of McKensie MackCompany: McKensie Mack Group is a research- and change-management firm that centers on racial and social justice.What initiatives they have taken to address the Great Resignation: Last year, in collaboration with Project Include, we published research on the impact of COVID-19 on remote workers. We developed and shared resources and guiding principles for leaders looking for support and education in reframing how they think about work, benefits, and productivity. Skills they've used to be successful in HR: My training and education as a transformative justice facilitator help me bring a restorative framework to the ways I work with people, de-escalate when situations get tense or uncomfortable, and seek noncarceral and nonpunitive approaches to working with people who make mistakes or cause harm.My knowledge of power, privilege, and positionality has been valuable in HR.Cassie Whitlock, director of HR at BambooHRCassie Whitlock.Courtesy of Cassie WhitlockCompany: BambooHR provides HR software for businesses. Skills they've used to be successful in HR: Understanding data and analysis has been essential in elevating my impact across the organization. Using data has helped me identify and solve complex challenges around screening and hiring, role progression, designing department structures, employee engagement, and retention. Data is the language of business, and it's critical in HR. How they've been supporting their company's diversity, equity, and inclusion efforts during the pandemic: Diversity starts with hiring practices. We had already implemented essential diversity, equity, and inclusion hiring practices like gender decoding on our job ads, diversity representation in the screening process, scorecards for consistent and equitable screening criteria, and antibias training for all hiring managers and interviewers. We also looked at internal diversity to understand how to best support employees. We adapted some roles to help working parents juggle remote work and homeschooling. We offered paid time off for employees who contracted COVID-19 or had to provide care for a family member with the virus. It was also essential to create income stability for employees with personal or family health risk factors.Sara Cooper, chief people officer at JobberSara Cooper.Courtesy of Sara CooperCompany: Jobber provides job tracking and customer-management software for home-service businesses.How the events of the pandemic affected their view of HR's role: The pandemic required HR leaders to be very quick on their feet, to make fast decisions often with little information and in an environment changing by the day. There was no pandemic playbook.The most successful companies did this by creating plans that took into account the evolving information almost daily and listening to their employees and customers. How they've supported employees during the coronavirus pandemic: We realized early in the pandemic that performance during this time had to be approached in a very different way.For example, we implemented "wellness Fridays" in the summers of 2020 and 2021, which provided employees with Fridays off to focus on self-care. In addition, we offered various programs for folks who needed to reduce their hours or take job-protected leaves to focus on themselves or their families. When we eventually reopen our offices, we will be moving to a hybrid structure.I realized early on that there's no single solution for every company but that the key to creating a thriving hybrid environment requires the input of the company's most important stakeholders: its employees.Danielle McMahan, chief people and business-operations officer at WileyDanielle McMahan.WileyCompany: Wiley is a global leader in scientific research and career-connected education.Initiatives they've taken to address the effects of the Great Resignation: We offer employees over 1,000 flexible and affordable degree and nondegree programs, including bachelor's and master's programs. As a global leader in research and education, we practice what we preach to unlock potential and support lifelong learning.How the events of the pandemic affected their view of HR's role: We transformed our department to become more people-centric: focusing on people rather than processes. To formally acknowledge this shift, we said goodbye to "human resources" and renamed our department the People Organization. Our employees are at the center of all that we do.Their favorite interview question: "Tell me your story." I love to hear people's career journeys, and it allows the candidate to reflect on what roles they've held in the past and how those roles inform the type of job they're looking for today.Through these stories, I also typically get to know the candidate personally. I am able to learn what is important to them and what they value. Susan LaMonica, chief human-resources officer, head of corporate social responsibility at Citizens Financial GroupSusan LaMonica.Courtesy of Susan LaMonicaCompany: Citizens Financial Group is one of the nation's oldest and largest financial institutions offering a wide variety of retail and commercial banking products.How they've been supporting their company's diversity, equity, and inclusion efforts during the pandemic: I've played a role in introducing initiatives such as the TalentUp program, which aims to reshape Citizens' workforce and prepare it for continual innovation focused on talent acquisition, reskilling and upskilling, mobility, and redeployment, partnerships, and expanding the talent pipeline.As a result of the program, in 2020, there were nearly 100 new hires sourced directly from early-career programs, with a significant segment identifying as women and people of color. With my main focus being democratization, I have ensured managers have the training and resources available to create equitable and inclusive environments for all colleagues. My team also began tying accountability goals to performance reviews to ensure managers prioritize democratization within their teams while understanding and working to eliminate biases at work.Books, podcasts, shows, or movies that inspire them: "How I Built This" with Guy Raz on NPR is my favorite podcast. Each episode highlights a well-known entrepreneur and their journey. I enjoy learning about the people and the journey behind many successful companies and brands. I'm inspired by the vision and tenacity of these entrepreneurs, many of whom had repeated failures.Ashley Alexander, head of people at FrontAshley Alexander.Front via InkHouseCompany: Front is a software company that develops a shared email inbox and calendar product. How they've supported employees during the coronavirus pandemic: Once we made the decision to transition to remote work, my mission was to ensure that our employees felt supported and connected. We doubled down on activities that fostered a sense of community, like our weekly all-hands meetings on Zoom, ask-me-anything sessions with our executives, and virtual companywide off-site activities.Why they pursued a career in HR: I got into HR because I wanted to help people, but throughout the course of my career, this idea has dramatically expanded. I now view my role as an employee advocate. I strive to demystify why things happen at a company the way they happen. I've found that even if they aren't happy with everything that happens in a company, if they understand our choices, ultimately, they can respect them.Lori Goler, head of people at MetaLori Goler.Courtesy of Lori GolerWhat their company does: Meta is the parent company of Facebook.How they've supported employees during the pandemic: We were the first tech company to shut down our offices, and employees began to work from home. We established an emergency-paid-leave program designed to give people time off for "in the moment emergencies," including eldercare, childcare, and school closures. We developed and executed a global return-to-office health strategy across 60 sites to enable a safe transition for those coming back to the office and created an office-deferral program for those who were not yet ready to return.How they've supported their company's DEI efforts: Meta committed publicly to have at least 50% of our workforce composed of underrepresented groups by 2024 and to increase the number of US-based leaders who are people of color by 30%. We announced in our eighth annual diversity report that in 2021, we increased representation of women, underrepresented minorities, and people with disabilities and veterans to 45.6% of our workforce. This will continue to be a focus for us.How they've addressed the Great Resignation at their company: This year, we introduced a number of new benefits, including a wellness-reimbursement benefit of up to $3,000 annually that people can use for expenses like financial planning, tuition reimbursement, fitness equipment and services, childcare for children over the age of 5, and eldercare. We also launched "choice days," which gives people an additional two days off per year to use however they choose, and we increased our 401(k)-match program to help people save more for retirement.Kali Beyah, global chief talent officer at HugeKali Beyah.HugeWhat their company does: Huge is a digital design and marketing agency. Clients include Google, Coca-Cola, and Unilever.How they've supported employees during the pandemic: Whether giving mental-health days, reimagining our return to the office, extending summer Fridays, flexing for childcare, shifting to "no-meeting Fridays," or continuing to invest in development, transparency, wellness workshops/resources, and DEI — we've taken a holistic and evolving approach.The constant as we evolve is that we listen to our people regularly, and we are authentic in our responses.How they've addressed the Great Resignation at their company: We are reimagining the future of work as the world not only encounters the "Great Resignation" but also the "Great Reevaluation." Our reimagining includes things such as "Huge holidays" (closure and collective recharging three weeks a year), "Huge summer" (work from anywhere in July), "no-meeting Fridays," and summer Fridays.How the pandemic changed their view of HR's role: We have an opportunity to reimagine work and the role it plays in people's lives — and we have an exciting opportunity to debunk false binaries and prove that people and businesses can both thrive.Lauren Nuttall, vice president of people at Boulevard LabsLauren Nuttall.Courtesy of Lauren NuttallCompany: Boulevard is a client-experience platform built for appointment-based self-care businesses.How they've supported employees during the coronavirus pandemic: I opted to take Boulevard 100% remote early on in the pandemic in March 2020. However, as the pandemic persisted into 2021, I realized that with the significant paradigm shift around the viability of remote work, coupled with the growing employee (and candidate) interest in staying fully remote, we needed to deepen our commitment.That meant giving up our physical office space altogether and allowing all employees to move wherever they want in the US without it negatively impacting their existing compensation package. Additionally, the need for better virtual access to mental health and high-quality medical care prompted the decision to bring on One Medical to provide complimentary subscriptions to all employees and their dependents.How they've been supporting their company's diversity, equity, and inclusion efforts during the pandemic: One of the programs that I'm most proud of was a virtual-speaker series where we sought to highlight and amplify underrepresented voices within the beauty and wellness industry.We invited a massage-business owner that catered specifically to LGBTQIA+ clientele for one of the sessions. This created a dialogue around how even limited pronoun options within a booking workflow can be harmful and resulted in us making actual changes to our product to better represent our customers and their clients. Surfacing these opportunities to educate and create dialogue can have incredible ripple effects.Tanya Reu-Narvaez, executive vice president and chief people officer at RealogyTanya Reu-Narvaez.Courtesy of Tanya Reu-NarvaezWhat their company does: Realogy is a real-estate-services firm that owns brokerages including Century 21, Sotheby's International Realty, and Corcoran. How they've supported their company's DEI efforts: To help increase representation in the industry, we established a new partnership with the National Association of Minority Mortgage Bankers of America and expanded the Inclusive Ownership program, an industry-first initiative designed to attract brokerage owners from underrepresented communities to launch their own franchise businesses.How they've addressed the Great Resignation at their company: We have a Go Further Today program where we've made small but impactful changes that decrease meeting and email fatigue and increase efficiency by working smarter.We have no internal meetings on Fridays, encourage employees to make smart decisions about whether to accept or decline meetings, and embrace an "exhale, then email" philosophy to help mitigate the pressure of email overload we're all facing. These are small but mighty changes that make a significant difference for our teams.Noa Geller, vice president of HR at Papaya GlobalNoa Geller.Eyal TouegWhat their company does: Papaya Global is a cloud-based payroll platform. How they've addressed the Great Resignation at their company: We added a learning and development budget for every employee to choose the development course that is meaningful and impactful to them. Driven from our employee-engagement survey, we took initiatives to support work-life balance, such as a work-from-anywhere benefit, allowing our employees to work up to one month per year outside of their home region.Also driven from our engagement survey, we are implementing more trainings around best practices and tools to ease the burnout that is a part of a hypergrowth company during COVID times.How the pandemic changed their view of HR's role: During the pandemic, the HR role became an even more crucial role within every organization. We were proactively working to support COVID policies and work-from-home best practices, and many of these things were unprecedented.HR managers really had to be innovative and creative — and in a very short amount of time. We have supported managers in learning how to manage remotely, how to navigate illnesses and emotional distress among their employees, as well as help employees remain connected to their teams and the company, while not only fully remote but often completely isolated.Tara Ataya, chief people and diversity officer at HootsuiteTara Ataya.HootsuiteWhat their company does: Hootsuite is a social-media-management platform whose clients include Ikea and Costco.How they've supported employees during the pandemic: We restructured the global offices to be used as creative hubs, built for collaboration and social connection, with a special focus on health and mental wellness.In addition, employees were granted the autonomy and benefits they needed to reshape their work environment to choose what works best for them by restructuring our workplace policy so every employee can choose if they wish to work full time in office, remote, or take a hybrid approach.How they've supported their company's DEI efforts: During the pandemic, we built on our partnership with the Black Professionals in Tech Network in Canada to help end systemic racism in the technology sector by providing Black professionals with equal access to opportunities in tech, an expanded peer network, and support in accelerating career growth.This helped foster a stronger sense of belonging in the workplace by joining an allyship training with the Black Professionals in Tech Network, along with 125 Hootsuite employees, including all members of the executive team, about best practices for sourcing Black talent.How the pandemic changed their view of HR's role: The pandemic shifted HR teams from being the best-kept secret superpower to the front-and-center compass for navigating through the most difficult time many organizations and generations have ever faced. The role of HR is one of strategy, that is adept at navigating uncertainty with agility and enables the business to drive meaningful business results with people in mind.Félix Manuel Chinea, diversity, equity, inclusion, and belonging manager at DoximityFélix Manuel Chinea.Courtesy of Félix Manuel ChineaWhat their company does: Doximity is a professional medical network for physicians. The company went public in June.How they've supported employees during the pandemic: My focus during the pandemic has been to make DEI initiatives at Doximity meaningful, impactful, and tangible across the whole organization.By aligning DEI with our company mission and values, we are able to both directly support our employees and empower them to make a meaningful impact in their communities during and beyond the pandemic.How they've addressed the Great Resignation at their company: The Great Resignation has given us an opportunity to reflect on what makes working at our company fulfilling. Our organizational purpose at Doximity is to connect medical professionals and build clinical tools that will ultimately impact patient care. Amid a global pandemic and demand for racial justice, I believe our purpose allows us the opportunity to both attract and retain top talent and make a meaningful impact on health equity across historically marginalized communities.How the pandemic changed their view of HR's role: Both the pandemic and recent demands for racial justice have highlighted the long-standing need for all leaders to develop solutions and cultures that recognize the full humanity of employees.While every person is responsible for fostering an equitable and inclusive culture, DEI leaders must develop a strategic understanding of how to integrate these concepts into their company's organizational structure.Gloria Chen, chief people officer at AdobeGloria Chen.Courtesy of Gloria ChenWhat their company does: Adobe is a global software company. How they've supported employees during the pandemic: What I am most proud of during the pandemic is not what the company has done for our employees but what our employees have done for each other.When India was overcome by the Delta surge, and our employees and their families were ravaged by COVID, our employees created a phone tree to locate hospital beds, located oxygen to bring to hospitals, and cooked and delivered meals to families in quarantine. Our employees were truly our heroes.How they've supported their company's DEI efforts: In 2020, our diversity and inclusion team and our Black Employee Network launched the Taking Action Initiative task force to explore and drive actions we could take to make meaningful change internally and externally to the company.The effort led to strategic partnerships with historically Black colleges and universities, Hispanic-serving institutions, and a sponsorship program to support career advancement for underrepresented individuals.How the pandemic changed their view of HR's role: Having stepped into the role of chief people officer in February 2020, my entire HR experience has been shaped by the pandemic.I learned that the basics of human needs — physical and mental health, a sense of security, and connectedness — cannot be taken for granted in a professional setting. During the pandemic, we lost one of our beloved cofounders. That gave me a tremendous sense of responsibility as a longtime Adobe employee to carry the torch for the values that they instilled in us.Kim Seymour, chief people officer at WW InternationalKim Seymour.WWWhat their company does: WW International (formerly known as Weight Watchers) offers a program for weight loss and wellness.How they've supported their company's DEI efforts during the pandemic: WW recently released an extensive report titled "Black Women & Wellness" to shed light on the disparities and biases that Black women face within the healthcare system today.The report showcases what is being done by changemakers within their communities to create safe spaces, better access to healthcare, and underscore why Black women deserve health, wellness, and quality healthcare.How they've addressed the Great Resignation at their company: Some of our most recent investments to address potential employee burnout include offering Sibly for resilience, One Medical for convenient medical care, and ClassPass for fitness goals. All of our employees at WW are also members and have access to the WW program.In addition to a personal-well-being allowance of $1,000 per employee, my team also created "flex Fridays," which allows employees to start their weekend early by redistributing the hours they work the remainder of that week, whether that's a Zoom-free Friday afternoon or signing off early.Manish Mehta, global head of human resources at BlackRockManish Mehta.Courtesy of Manish MehtaWhat their company does: BlackRock is a global investment manager that employs 16,000 people and manages more than $10 trillion in assets.How they've supported their company's DEI efforts: We are fortunate to have over 80% of our employees participate in one of our 15 global employee, professional, and social impact networks.Each network is sponsored by one or more of our Global Executive Committee members who engage with them to help navigate important cultural and strategic topics. I am a sponsor of our Asian and Middle Eastern Professionals network, which was formally launched in 2021.How they've addressed the Great Resignation at their company: We supported and enabled managers through training modules on delivering feedback, effectively setting objectives and managing performance, motivating and managing teams, and having productive conversations on returning our people to the office.We sustained our focus on career development. This includes career pathing in areas like technology, development programs for our emerging vice-president leaders, and our Black and Latinx managing directors and directors, and increasing our sponsorship programs.How the pandemic changed their view of HR's role: I have seen the difference HR can make in people's lives. Helping people navigate the loss of a loved one or a colleague, supporting the family of an employee we've lost, recognizing and helping those suffering from mental-health challenges, being there to listen and act when an employee does not feel like they belong, growing our benefits to respond to what employees are dealing with in their lives — these are just some of the things that HR does that are not always seen.Karsten Vagner, senior vice president of people at Maven ClinicKarsten Vagner.Courtesy of Karsten VagnerWhat their company does: Maven Clinic is a virtual platform that provides support across fertility, pregnancy, adoption, parenting, and pediatrics.How they've supported their employees during the coronavirus pandemic: Some of the companywide initiatives and programs included Donut, a Slack-integrated app, to help employees maintain that serendipitous connection they've all come to love at the office.We also experimented with other virtual events, like weekly "coffeehouse cabaret" sessions with Broadway talent over Google Hangouts, cooking challenges, a companywide talent show, Halloween in April for employees' children, and more. How they've supported their company's diversity, equity, and inclusion efforts during the pandemic: Working with Maven's people team, the company created employee working groups devoted to getting feedback about various aspects of Maven's business. While it was rewarding to see employee feedback come to life, what I'm most proud of is the fact that neither I nor the executive team did this work in a silo.Our DEI program was completely ground up and centered on employee needs. And it continues to be to this day. The work our organization has done — in recruiting, partnerships, volunteering, product— it's all been led by our employees.How they've supported their employees during the Great Resignation: To combat work-related stress, Maven introduced new programs to support employees' mental health, including group sessions with Maven's mental-health providers and career coaches, mandatory mental-health days, twice-a-week no-meeting blocks, and several weeks where employees had time to recharge and unwind.Elaine Mak, chief people officer at ValimailElaine Mak.Courtesy of Elaine MakWhat their company does: Valimail is a cloud-native platform for validating and authenticating sender identity to avoid phishing, spoofing, and brand hijacking.How they've supported their employees during the coronavirus pandemic: As the pandemic unfolded, it was an opportunity to lay a strategic foundation on Valimail's organizational design to serve a dual purpose: Drive talent acquisition and retention and seat people at the table to become an integral voice in making decisions that affect them.In 18 months, my team has refreshed Valimail's company mission, values, and strategy to explicitly prioritize and resource people and DEI efforts. My team has also pivoted the leadership model to a cross-functional structure that distributes power, agency, and autonomy of decision-makers across levels.I've also led the people team to expand and diversify the leadership team at Valimail to ensure appropriate voices and perspectives have a seat at the table to inform strategic decisions. How they've supported their company's diversity, equity, and inclusion efforts during the pandemic: We empowered a DEI committee resourced with an executive sponsor and budget focused on wellness initially to address burnout. Along with other company efforts, we have the foundation to execute a strategic road map on DEI education and development and further cement DEI at the heart of our business and people strategy.Lastly, our efforts in people and DEI culminated in an employer-brand makeover that authentically reflects a day-to-day reality where people-first is core to our culture.Kerris Hougardy, vice president of people at AdaKerris Hougardy.AdaWhat their company does: Ada is an automation platform that powers brand interactions between companies and their customers.How they've supported their employees during the coronavirus pandemic: Ada's first priority during the pandemic was to assess the health and safety of its employees and to implement an immediate change to the work environment.The transition to a full-remote, digital-first culture required Ada to ensure its employees could work and communicate effectively.Our employee-relations team is on hand to support anyone going through work or personal issues. We have a wellness fund for each employee to get access to support — mental health and physical, access to ClassPass, and lunch and learns where they can listen to speakers around burnout and resiliency.How have the events of the pandemic affected your view of HR's role? HR is no longer only about hiring and firing employees, but about supporting and engaging with employees as whole humans.People should be able to show up authentically and do their best work, to feel acceptance and belonging, and to feel supported with life's ups and downs.Cheryl Johnson, chief human-resources officer at PaylocityCheryl Johnson.Courtesy of Cheryl JohnsonWhat their company does: Paylocity provides cloud-based payroll- and human-capital-management software.How they've supported their employees during the coronavirus pandemic: My HR leaders collaborated with Paylocity's Diversity Leadership Council to ensure that company benefits intentionally built an inclusive and equitable culture for current and future employees and their families.The group also confirmed that medical plans aligned with the World Professional Association for Transgender Health (WPATH) Standards of Care for the Health of Transsexual, Transgender, and Gender Nonconforming People.For financial flexibility, we rolled out a loan program, offering interest-free loans to any employees in need, along with on-demand payment for early access to earned wages if needed. At the same time, we introduced voluntary furloughs for up to 90 days and implemented an international work program to allow employees to work abroad for up to 90 days.How they've supported their employees during the Great Resignation: We formed task forces to understand why people were leaving but, more importantly, why people were staying. Recently our HR team has found success socializing "stay interviews," which help managers to improve their direct-report relationships, keep at-risk talent, and provide broader insights to build culture and connection.Giving employees greater transparency helps them spot career opportunities and paths to growth. Our HR team is implementing succession planning efforts to identify and develop key talent and give employees more freedom to impact how, where, and when they work. Dave Carhart, vice president of people at LatticeDave Carhart.Courtesy of Dave CarhartWhat their company does: Lattice is a people-management platform that helps leaders build engaged, high-performing teams.How they've supported their employees during the coronavirus pandemic: Work was stressful in "normal" pre-COVID times, but the pandemic has created new levels of burnout and exhaustion.Recognizing this, in 2020, I oversaw the rollout of Lattice "recharge days," a number of designated days where the entire company is off on the same day with the explicit goal of stepping away from work mentally. The recharge days has since been made permanent, with six annual recharge days added to our annual calendar on top of national holidays and flexible PTO. How have the events of the pandemic affected your view of HR's role? It's reminded us how critical it is to lead with empathy and represent a very human voice within our workplaces. We are asking people to bring their whole selves and all of their energy and commitment.With that will also come their personal passions, their family commitments, and the individual challenges that they are facing. We need to embrace all of that and come with support for the whole person and their family, too.Marlee Raber Proukou, director of people operations at JetsonMarlee Raber Proukou.Courtesy of Marlee ProukouWhat their company does: Jetson is a personal-mobility-devices company that sells electric bikes, electric scooters, and hoverboards.How they've supported their employees during the Great Resignation: In addition to navigating a global pandemic, our employees have had to adjust to the company's rapid growth, resulting in many being spread thin and approaching burnout.We've tried to address this two ways — focusing on both recruitment and employee appreciation. We built a larger people-operations team to increase our recruitment efforts, bringing in much needed full-time and contract hires to assist with our ever-increasing workload so our employees can enjoy more of a balance.Through bigger efforts, like rewarding our employees with promotions, bonuses, and raises to smaller changes like our new "all-star award" — a peer-nominated cash award presented monthly to an employee who is impacting their teammates — we continuously try to let our employees know we are grateful for them.How have the events of the pandemic affected your view of HR's role? The role has evolved from what many people thought of as traditional HR functions, like payroll and benefits administration, to encompass more people-centric priorities like supporting employees' work-life balance, ensuring a work environment that is both productive and safe, and creating an increasingly diverse workforce.In today's world, a successful HR team is quick-thinking, strategic, and empathetic. Most importantly, we are working to understand and support our employee's personal and professional experiences in what has been an extremely turbulent two years.Karen Craggs-Milne, vice president of ESG at ThoughtExchangeKaren Craggs-Milne.Courtesy of Karen Craggs-MilneWhat their company does: ThoughtExchange is a patented antibias enterprise tool that leaders use to gain insights that inform decision-making.How they've supported their employees during the coronavirus pandemic: With the pandemic causing a global shift to remote work, and recognizing the diverse circumstances of the company's employee base, we brought an equity lens to the people team's COVID-response initiatives.By asking diverse employees what they needed most to navigate the pandemic and how to best support employee well-being across different employee populations, we helped ThoughtExchange identify tailored solutions that made a big difference to employees.Listening to its employees, we offered financial support during school closures so parents could hire tutors, purchase memberships to educational sites or resources, and continue to ensure their children's educational needs were met.What are the skills you have used to be successful in HR? Empathy and patience are arguably the two most important characteristics to grasp when being a leader in HR.Employees want to feel heard and recognized during their time at an organization, and leveraging the ability to understand where all opinions are coming from, and then negotiating the best collective outcomes, is key to maintaining top talent that feels safe and valued within their work environment.Read the original article on Business Insider.....»»

Category: topSource: businessinsiderMar 18th, 2022

Georgia Tech among colleges and universities with best-paid employees

Here's how Georgia Tech's employee pay compares to other top schools around the nation......»»

Category: topSource: bizjournalsJan 24th, 2023

The rise and fall of Elizabeth Holmes, the former Theranos CEO found guilty of wire fraud and conspiracy who prosecutors say still shows "no remorse to her victims"

Holmes was sentenced to over 11 years in prison in November. She appealed her conviction, and in the meantime, she's living on $13,000-a-month estate. Elizabeth Holmes leaves after a hearing at a federal court in San Jose, California, on July 17, 2019.Reuters/Stephen Lam Elizabeth Holmes dropped out of Stanford at 19 to start blood-testing startup Theranos. The technology was praised as revolutionary and Holmes was hailed as the next Steve Jobs.  Theranos' value grew to $9 billion until flaws in the technology were exposed and Holmes was charged with fraud. After a months-long trial, Holmes was found guilty.  Here's how Holmes went from precocious child, to ambitious Stanford dropout, to an embattled startup founder sentenced to prison. Elizabeth Holmes was born on February 3, 1984 in Washington, D.C. Her mom, Noel, was a Congressional committee staffer, and her dad, Christian Holmes, worked for Enron before moving to government agencies like USAID.@eholmes2003/TwitterSource: Elizabeth Holmes/Twitter, CNN, Vanity FairHolmes' family moved when she was young, from Washington, D.C. to Houston.Washington, D.C.Getty ImagesSource: FortuneWhen she was 7, Holmes tried to invent her own time machine, filling up an entire notebook with detailed engineering drawings. At the age of 9, Holmes told relatives she wanted to be a billionaire when she grew up. Her relatives described her as saying it with the "utmost seriousness and determination."Theranos CEO Elizabeth Holmes.REUTERS/Carlo AllegriSource: CBS News, Bad Blood: Secrets and Lies in a Silicon Valley StartupHolmes had an "intense competitive streak" from a young age. She often played Monopoly with her younger brother and cousin, and she would insist on playing until the end, collecting the houses and hotels until she won. If Holmes was losing, she would often storm off. More than once, she ran directly through a screen on the door.Elizabeth Holmes, CEO of Theranos, attends a panel discussion during the Clinton Global Initiative's annual meeting in New York, September 29, 2015.REUTERS/Brendan McDermidSource: Bad Blood: Secrets and Lies in a Silicon Valley StartupIt was during high school that Holmes developed her work ethic, often staying up late to study. She quickly became a straight-A student, and even started her own business: she sold C++ compilers, a type of software that translates computer code, to Chinese schools.Tyrone Siu/ReutersSource: Fortune, Bad Blood: Secrets and Lies in a Silicon Valley StartupHolmes started taking Mandarin lessons, and part-way through high school, talked her way into being accepted by Stanford University’s summer program, which culminated in a trip to Beijing.Yepoka Yeebo / Business InsiderSource: Bad Blood: Secrets and Lies in a Silicon Valley StartupInspired by her great-great-grandfather Christian Holmes, a surgeon, Holmes decided she wanted to go into medicine. But she discovered early on that she was terrified of needles. Later, she said this influenced her to start Theranos.Hollis Johnson/Business InsiderSource: San Francisco Business TimesHolmes went to Stanford to study chemical engineering. When she was a freshman, she became a "president's scholar," an honor which came with a $3,000 stipend to go toward a research project.STANFORD, CA - MAY 22: People ride bikes past Hoover Tower on the Stanford University campus on May 22, 2014 in Stanford, California. According to the Academic Ranking of World Universities by China's Shanghai Jiao Tong University, Stanford University ranked second behind Harvard University as the top universities in the world. UC Berkeley ranked third. (Photo by Justin Sullivan/Getty Images)Justin Sullivan/GettySource: FortuneHolmes spent the summer after her freshman year interning at the Genome Institute in Singapore. She got the job partly because she spoke Mandarin.An office worker walks along the Singapore River front during the lunch hour.Wong Maye-E/APSource: FortuneAs a sophomore, Holmes went to one of her professors, Channing Robertson, and said: "Let's start a company." With his blessing, she founded Real-Time Cures, later changing the company's name to Theranos. Thanks to a typo, early employees’ paychecks actually said "Real-Time Curses."Getty ImagesSource: Bad Blood: Secrets and Lies in a Silicon Valley StartupHolmes soon filed a patent application for a "medical device for analyte monitoring and drug delivery," a wearable device that would administer medication, monitor patients' blood, and adjust the dosage as needed.Reuters/Brian SnyderSource: Fortune, US Patent OfficeBy the next semester, Holmes had dropped out of Stanford altogether, and was working on Theranos in the basement of a college house.Jeff Chiu/APSource: Wall Street JournalTheranos's business model was based around the idea that it could run blood tests, using proprietary technology that required only a finger pinprick and a small amount of blood. Holmes said the tests would be able to detect medical conditions like cancer and high cholesterol.Theranos Chairman, CEO and Founder Elizabeth Holmes (L) and TechCrunch Writer and Moderator Jonathan Shieber speak onstage at TechCrunch Disrupt at Pier 48 on September 8, 2014 in San Francisco, CaliforniaSteve Jennings/Getty ImagesSource: Wall Street JournalHolmes started raising money for Theranos from prominent investors like Oracle founder Larry Ellison and Tim Draper, the father of a childhood friend and the founder of prominent VC firm Draper Fisher Jurvetson. Theranos raised more than $700 million, and Draper has continued to defend Holmes.Investor Tim Draper (right).CNBCSource: SEC, CrunchbaseHolmes took investors' money on the condition that she wouldn't have to reveal how Theranos' technology worked. Plus, she would have final say over everything having to do with the company.JP Yim/GettySource: Vanity FairThat obsession with secrecy extended to every aspect of Theranos. For the first decade Holmes spent building her company, Theranos operated in stealth mode. She even took three former Theranos employees to court, claiming they had misused Theranos trade secrets.Kimberly White/GettySource: San Francisco Business TimesHolmes' attitude toward secrecy and running a company was borrowed from a Silicon Valley hero of hers: former Apple CEO Steve Jobs. Holmes started dressing in black turtlenecks like Jobs, decorated her office with his favorite furniture, and like Jobs, never took vacations.Steve Jobs.Justin Sullivan/Getty ImagesSource: Vanity FairEven Holmes's uncharacteristically deep voice may have been part of a carefully crafted image intended to help her fit in in the male-dominated business world. In ABC's podcast on Holmes called "The Dropout," former Theranos employees said the CEO sometimes "fell out of character," particularly after drinking, and would speak in a higher voice.Former U.S. President Bill Clinton and Elizabeth Holmes, CEO of Theranos, during the Clinton Global Initiative's annual meeting in New York.Lucas Jackson/ReutersSource: Bad Blood: Secrets and Lies in a Silicon Valley Startup, The CutHolmes was a demanding boss, and wanted her employees to work as hard as she did. She had her assistants track when employees arrived and left each day. To encourage people to work longer hours, she started having dinner catered to the office around 8 p.m. each night.TheranosSource: Bad Blood: Secrets and Lies in a Silicon Valley StartupMore behind-the-scenes footage of what life was like at Theranos was revealed in leaked videos obtained by the team behind the HBO documentary "The Inventor: Out for Blood in Silicon Valley." The more than 100 hours of footage showed Holmes walking around the office, scenes from company parties, speeches from Holmes and Balwani, and Holmes dancing to "U Can't Touch This" by MC Hammer.Theranos founder Elizabeth Holmes at the company's headquarters.Courtesy HBOSource: Business InsiderShortly after Holmes dropped out of Stanford at age 19, she began dating Theranos president and COO Sunny Balwani, who was 20 years her senior. The two met during Holmes' third year in Stanford’s summer Mandarin program, the summer before she went to college. She was bullied by some of the other students, and Balwani had come to her aid.Footage of Sunny Balwani presenting."60 Minutes"Source: Bad Blood: Secrets and Lies in a Silicon Valley StartupBalwani became Holmes' No. 2 at Theranos despite having little experience. He was said to be a bully, and often tracked his employees' whereabouts. Holmes and Balwani eventually broke up in spring 2016 when Holmes pushed him out of the company.Sunny Balwani pictured in January 2019.Justin Sullivan/Getty ImagesSource: Bad Blood: Secrets and Lies in a Silicon Valley StartupIn 2008, the Theranos board decided to remove Holmes as CEO in favor of someone more experienced. But over the course of a two-hour meeting, Holmes convinced them to let her stay in charge of her company.Jamie McCarthy / GettySource: Bad Blood: Secrets and Lies in a Silicon Valley StartupAs Theranos started to rake in millions of funding, Holmes became the subject of media attention and acclaim in the tech world. She graced the covers of Fortune and Forbes, gave a TED Talk, and spoke on panels with Bill Clinton and Alibaba's Jack Ma.Elizabeth Holmes with former President Bill Clinton, left, and Alibaba cofounder Jack Ma.Andrew Burton/Getty ImagesSource: Vanity FairTheranos quickly began securing outside partnerships. Capital Blue Cross and Cleveland Clinic signed on to offer Theranos tests to their patients, and Walgreens made a deal to open Theranos testing centers in their stores. Theranos also formed a secret partnership with Safeway worth $350 million.A Theranos testing center inside a Walgreens.Melia Robinson/Business InsiderSource: Wired, Business InsiderIn 2011, Holmes hired her younger brother, Christian, to work at Theranos, although he didn’t have a medical or science background. Christian Holmes spent his early days at Theranos reading about sports online and recruiting his Duke University fraternity brothers to join the company. People dubbed Holmes and his crew the "Frat Pack" and "Therabros."Elizabeth Holmes and her brother, Christian.Andrew Harrer/Bloomberg via Getty ImagesSource: Bad Blood: Secrets and Lies in a Silicon Valley StartupAt one point, Holmes was the world's youngest self-made female billionaire with a net worth of around $4.5 billion.Kimberly White/Getty Images for Breakthrough PrizeSource: ForbesHolmes was obsessed with security at Theranos. She asked anyone who visited the company’s headquarters to sign non-disclosure agreements before being allowed in the building, and had security guards escort visitors everywhere — even to the bathroom.Michael Dalder/Reuters Holmes hired bodyguards to drive her around in a black Audi sedan. Her nickname was "Eagle One." The windows in her office had bulletproof glass.Source: Bad Blood: Secrets and Lies in a Silicon Valley StartupAround the same time, questions were being raised about Theranos' technology. Ian Gibbons — chief scientist at Theranos and one of the company's first hires — warned Holmes that the tests weren't ready for the public to take, and that there were inaccuracies in the technology. Outside scientists began voicing their concerns about Theranos, too.Melia Robinson/Tech InsiderSource: Vanity Fair, Business InsiderBy August 2015, the FDA began investigating Theranos, and regulators from the government body that oversees laboratories found "major inaccuracies" in the testing Theranos was doing on patients.Mike Segar/ReutersSource: Vanity FairBy October 2015, Wall Street Journal reporter John Carreyrou published his investigation into Theranos's struggles with its technology. Carreyrou's reporting sparked the beginning of the company's downward spiral.Wall Street Journal reporter John Carreyrou.CBS "60 Minutes"Source: Wall Street JournalCarreyrou found that Theranos' blood-testing machine, named Edison, couldn't give accurate results, so Theranos was running its samples through the same machines used by traditional blood-testing companies.Carlos Osorio/APSource: Wall Street JournalHolmes appeared on CNBC's "Mad Money" shortly after the WSJ published its story to defend herself and Theranos. "This is what happens when you work to change things, and first they think you're crazy, then they fight you, and then all of a sudden you change the world," Holmes said.CNBC/YouTubeSource: CNBCBy 2016, the FDA, Centers for Medicare & Medicaid Services, and SEC were all looking into Theranos.GettySource: Wall Street Journal, WiredIn July 2016, Holmes was banned from the lab-testing industry for two years. By October, Theranos had shut down its lab operations and wellness centers.Mike Blake/ReutersSource: Business InsiderIn March 2018, Theranos, Holmes, and Balwani were charged with "massive fraud" by the SEC. Holmes agreed to give up financial and voting control of the company, pay a $500,000 fine, and return 18.9 million shares of Theranos stock. She also isn't allowed to be the director or officer of a publicly traded company for 10 years.Jeff Chiu/APSource: Business InsiderDespite the charges, Holmes was allowed to stay on as CEO of Theranos, since it's a private company. The company had been hanging on by a thread, and Holmes wrote to investors asking for more money to save Theranos. "In light of where we are, this is no easy ask," Holmes wrote.Kimberly White/Getty Images for FortuneSource: Business InsiderIn Theranos' final days, Holmes reportedly got a Siberian husky puppy named Balto that she brought into the office. However, the dog wasn't potty trained, and would go to the bathroom inside the company's office and during meetings.A Siberian husky (not Holmes' dog).Kateryna Orlova/ShutterstockSource: Vanity FairIn June 2018, Theranos announced that Holmes was stepping down as CEO. On the same day, the Department of Justice announced that a federal grand jury had charged Holmes, along with Balwani, with nine counts of wire fraud and two counts of conspiracy to commit wire fraud.Elizabeth Holmes, founder and CEO of Theranos, speaks at the Wall Street Journal Digital Live (WSJDLive) conference at the Montage hotel in Laguna Beach, California, October 21, 2015.Mike Blake/ReutersSource: Business Insider, CNBCTheranos sent an email to shareholders in September 2018 announcing that the company was shutting down. Theranos reportedly said it planned to spend the next few months repaying creditors with its remaining resources.Mike Blake/ReutersSource: Wall Street JournalAround the time Theranos' time was coming to an end, Holmes made her first public appearance alongside William "Billy" Evans, a 27-year-old heir to a hospitality property management company in California. The two reportedly first met in 2017, and were seen together in 2018 at Burning Man, the art festival in the Nevada desert.Jim Rankin/Toronto Star via Getty ImagesSource: Daily MailHolmes is said to wear Evans' MIT "signet ring" on a chain around her neck, and the couple reportedly posts photos "professing their love for each other" on a private Instagram account. Evans' parents are reportedly "flabbergasted" at their son's decision to marry Holmes.—Nick Bilton (@nickbilton) February 21, 2019Source: Vanity Fair, New York PostIt's unclear where Holmes and Evans currently reside, but they were previously living in a $5,000-a-month apartment in San Francisco until April 2019. The apartment was located just a few blocks from one of the city's top tourist attractions, the famously crooked block of Lombard Street.Lombard Place Apartments, where Holmes used to live.Rent SF NowSource: Business InsiderIt was later reported that Holmes and Evans got engaged in early 2019, then married in June in a secretive wedding ceremony. Former Theranos employees were reportedly not invited to the wedding, according to Vanity Fair.Gilbert Carrasquillo/Getty Images; Samantha Lee/Business InsiderSource: Vanity Fair, New York PostHolmes' and Balwani's cases have since been separated.Justin Silva/Getty, Stephen Lam/Reuters, Business InsiderSource: Department of Justice, Business InsiderBesides the criminal case, Holmes was also involved in a number of civil lawsuits, including one in Arizona brought by former Theranos patients over inaccurate blood tests. The lawyers representing her in the Arizona case said in late 2019 they hadn't been paid over a year and asked to be removed from Holmes' legal team.Former Theranos CEO Elizabeth Holmes leaves after a hearing at a federal court.Reuters/Stephen LamSource: Business InsiderHolmes' lawyers in the federal case had tried to get the government's entire case thrown out. In February 2020, Holmes caught a break after some of the charges against her were dropped when a judge ruled that some patients didn't suffer financial loss.Brendan McDermid/ReutersSource: Business InsiderAmid the coronavirus outbreak, Holmes' lawyers asked the judge in April 2020 to deem the case "essential" so the defense team could defy lockdown orders and continue to travel and meet face-to-face. The judge said he was "taken aback" by the defense's pleas to violate lockdown.Reuters/Robert GalbraithSource: Business Insider It soon become clear that the pandemic — and the health risks associated with assembling a trial in one — would make the July trial date unrealistic. Through hearings held on Zoom, the presiding judge initially pushed the trial back to October 2020 and later postponed it further to March 2021.Passengers wear masks as they walk through LAX airport.Reuters/Lucy NicholsonSource: Business Insider In March 2021, Holmes requested another delay to the trial because she was pregnant. She asked to push back the trial to August 31, and her request was granted. Holmes reportedly gave birth to the child in July.Nhat V. Meyer/MediaNews Group/Mercury News via Getty ImagesSource: Business Insider, CNBCHeading into the trial, Holmes felt "wronged, like Salem-witch-trial wronged," says a person who used to work with her closely.Holmes, right, leaving the Robert F. Peckham Federal Building in San Jose, California with her defense team on May 4, 2021.Nhat V. Meyer/MediaNews Group/Mercury News via Getty ImagesSource: Business InsiderThe trial kicked off in September. In opening statements, prosecutors argued that, "Out of time and out of money, Elizabeth Holmes decided to lie." Meanwhile, the defense argued that although Theranos ultimately crumbled, "Failure is not a crime. Trying your hardest and coming up short is not a crime."Theranos founder Elizabeth Holmes arrives at the Robert F. Peckham Federal Building with her defense team on August 31, 2021 in San Jose, California.Ethan Swope/Getty ImagesSource: Business Insider The list of possible witnesses for the trial named roughly 200 people, including the likes of Rupert Murdoch, Henry Kissinger, James Mattis, and Holmes herself.Theranos founder Elizabeth Holmes leaves the Robert F. Peckham U.S. Courthouse with her mother, Noel Holmes, during her trial.Brittany Hosea-Small/ReutersSource: Business InsiderIn the end, the trial featured testimony from just over 30 witnesses.Vicki Behringer/ReutersSource: Business InsiderOver the course of 11 weeks, prosecutors called 29 witnesses to testify — including former Theranos employees, investors, patients, and doctors — before resting their case in November.Vicki BehringerSource: Business Insider The defense then began making its case, calling just three witnesses, including Holmes herself.Jane Tyska/Digital First Media/The Mercury News via Getty ImagesSource: Business InsiderOn the stand, Holmes said Balwani emotionally and sexually abused her during their relationship.Former Theranos COO Ramesh "Sunny' Balwani leaves the Robert F. Peckham U.S. Federal Court on June 28, 2019 in San Jose, California.Justin Sullivan/Getty ImagesSource: Business InsiderHolmes also admitted that she added some pharmaceutical companies' logos to Theranos' reports without authorization. Investors previously said they took some reassurance in those reports because, based on the logos, they thought major pharmaceutical companies had validated Theranos' technology. Holmes said she added the logos to convey that work was done in partnership with those companies, but in hindsight she wishes she had "done it differently."Justin Sullivan/Getty ImagesSource: Business InsiderHolmes also acknowledged on the stand that she hid Theranos' use of modified commercial devices from investors. She said she did this because company counsel told her that alterations the company made to the machines were trade secrets and needed to be protected as such.Brittany Hosea-Small/ReutersSource: Business InsiderHolmes spent seven days on the stand before the defense rested its case in early December.Theranos founder Elizabeth Holmes arrives to attend her fraud trial at federal court in San Jose, California, U.S., December 16, 2021.Peter DaSilva/ReutersSource: Business InsiderIn closing arguments, prosecutors argued that Holmes "chose fraud over business failure" while the defense argued she was "building a business, not a criminal enterprise."Elizabeth Holmes walks into federal court in San Jose, Calif., Friday, Dec. 17, 2021.Nic Coury/Associated PressSource: Business InsiderAfter 15 weeks of trial, Holmes' case headed to a jury of eight men and four women on December 17, 2021.Elizabeth Holmes, founder and former CEO of blood testing and life sciences company Theranos, leaves the courthouse with her husband Billy Evans after the first day of her fraud trial in San Jose, California on September 8, 2021.Nick Otto/AFP/Getty ImagesSource: Business InsiderJurors deliberated for a total of seven days over the next few weeks before telling the court on January 3, 2022, that they were deadlocked on three of the 11 charges against Holmes. The judge read off some jury instructions to the group in court before instructing them to go back and deliberate further.Kate Munsch/ReutersSource: Business InsiderHours later, the jury returned a mixed verdict for Holmes, finding her guilty on one count of conspiracy to defraud investors and three counts of wire fraud. They found her not guilty on four other counts and failed to reach a verdict on the remaining three counts.Justin Sullivan/Getty ImagesSource: Business InsiderThe counts Holmes was found guilty of were all related to investments; she wasn't convicted on any of the charges involving patients who received inaccurate test results.David Odisho/Getty ImagesSource: Business InsiderHolmes faced the possibility of decades in prison. Each count carries a maximum 20-year prison sentence, a $250,000 fine, and a requirement to pay victims restitution.AP Photo/Nic Coury, FileSource: Business Insider Legal experts told Insider it was unlikely Holmes would get 20 years at sentencing, but she probably wouldn't get off without serving any time either.Justin Sullivan/Getty ImagesSource: Business InsiderHolmes was not taken into custody following the verdict and was to remain free until her sentencing on a $500,000 bond secured by property.Peter DaSilva/ReutersSource: Business InsiderSince the conviction, Holmes and Theranos have been the focus of a Hulu limited series, "The Dropout," based on the ABC News podcast of the same name.Amanda Seyfried in "The Dropout" (left); Elizabeth Holmes (right)Beth Dubber/Hulu; Steve Jennings/Getty Images for TechCrunchSource: Business InsiderHolmes is played by Amanda Seyfried in the dramatized series, which asks the question, "How did the world's youngest self-made female billionaire lose it all in the blink of an eye?"Amanda Seyfried in "The Dropout."HuluSource: HuluThe show premiered March 3, 2022, and also stars Naveen Andrews as Balwani, Holmes' right-hand man at Theranos.Beth Dubber/Hulu; Michael Short/Bloomberg via Getty ImagesSource: Business Insider In May 2022, Holmes pleaded with a judge to toss her conviction.APSource: Business Insider In a 24-page filing on May 27, Holmes' attorneys argued for her acquittal, saying the evidence was "insufficient to sustain the convictions."Nick Otto/AFP via Getty ImagesThey wrote, "Because no rational juror could have found the elements of wire fraud and conspiracy to commit wire fraud beyond a reasonable doubt on this record, the Court should grant Ms. Holmes' motion for judgment of acquittal.""Even if Ms. Holmes committed wire fraud against an investor (she did not) and even if Mr. Balwani committed wire fraud against an investor, that does not prove a conspiratorial agreement between them, nor does it prove that Ms. Holmes willfully joined any agreement," the attorneys continued in the filing.The presiding judge tentatively denied Holmes' request in September.But that wasn't the end: Holmes filed three motions requesting a new trial, one of which centered on the testimony of a prosecution witness who allegedly went to Holmes' house in August and expressed regret that he helped convict her.David Odisho/Getty ImagesSource: Business InsiderThe witness was former Theranos lab director Adam Rosendorff. According to an account of the incident from Billy Evans, Holmes' partner, Rosendorff showed up at their home looking "disheveled" and said he felt "guilty."David Odisho/Getty Images"He said when he was called as a witness he tried to answer the questions honestly but that the prosecutors tried to make everybody look bad (in the company)," Evans recalled in an email to Holmes' attorneys about their interaction. "He said that the government made things sound worse than they were when he was up on the stand during his testimony. He said he felt like he had done something wrong. And that this was weighing on him, He said he was having trouble sleeping."In another of Holmes' motions for a new trial, she says the prosecution portrayed her relationship with Balwani differently in their respective trials, to her detriment.In the final motion, Holmes said she was denied emails showing prosecutors failed to take appropriate steps to preserve a Theranos database that she claims would have helped her defense, even though the government furnished these materials when Balwani was on trial.Holmes notched a small victory when the presiding judge ordered an evidentiary hearing regarding Rosendorff's testimony and appearance at her home. This hearing meant that Holmes' sentencing was postponed from October 17, 2022, to November 18 of that year.Dai Sugano/MediaNews Group/The Mercury News via Getty ImagesSource: Business InsiderThe evidentiary hearing proved useless to Holmes, though, as witness Rosendorff said he stood by his initial testimony and only went to her home because he was "distressed" at the idea of Holmes' child growing up without a mother.Justin Sullivan/Getty Images"At all times the government encouraged me to tell the truth and only the truth," Rosendorff clarified at the hearing."I don't want to help Ms. Holmes," Rosendorff added. "The only person that can help her is herself. She needs to pay her debt to society."On November 8, the presiding judge denied all three of Holmes' motions for a new trial, paving the way for sentencing.Chris Ryan/GettyDays before her sentencing, Holmes' attorneys asked that she get no more than 18 months, preferably under house arrest. They submitted 130 letters from friends and family — spanning everyone from Senator Cory Booker to even an ex-CDC chief — pleading for leniency.In the end, they didn't get their wish. On November 18, 2022, Holmes was sentenced to 135 months, or 11.25 years, in prison with three years of supervised release beginning on April 27. "I stand before you taking responsibility for Theranos. I loved Theranos, it was my life's work," Holmes said through tears at the hearing.Justin Sullivan/Getty ImagesSource: KRON, InsiderMeanwhile, Balwani's trial began in March 2022 and also returned a conviction. He was found guilty in July on all 12 counts brought against him, and in early December Balwani was sentenced to nearly 13 years in prison with three years of probation. As with Holmes, restitution will be decided at a later date. The judge ordered Balwani to self-surrender on March 15, 2023.Former Theranos COO Ramesh "Sunny" Balwani and his legal team leave the Robert F. Peckham Federal Building on July 7, 2022 in San Jose, California.David Odisho/Getty ImagesSource: InsiderHolmes appealed her conviction in December 2022, and US prosecutors said in recent court filings that she "continues to show no remorse to her victims" and is currently living on an estate that costs $13,000 a month.Holmes attending a court hearing.Justin Sullivan/Getty ImagesSource: InsiderMaya Kosoff, Paige Leskin, and Áine Cain contributed to earlier versions of this story.Read the original article on Business Insider.....»»

Category: topSource: businessinsiderJan 20th, 2023

Amazon Hires More Alumni From Ivy League Universities Than Any Other Major Tech Company

According to our study, Amazon.com, Inc. (NASDAQ:AMZN) has more employees (18,661) that graduated from a prestigious Ivy League university than any other of the most valuable tech companies in our analysis. Accenture Plc (NYSE:ACN) comes in second place, with 14,397 graduates from Ivy League universities working there. Microsoft Corp (NASDAQ:MSFT) and Huawei ranked as two […] According to our study, Amazon.com, Inc. (NASDAQ:AMZN) has more employees (18,661) that graduated from a prestigious Ivy League university than any other of the most valuable tech companies in our analysis. Accenture Plc (NYSE:ACN) comes in second place, with 14,397 graduates from Ivy League universities working there. Microsoft Corp (NASDAQ:MSFT) and Huawei ranked as two of the least elitist tech giants in their hiring practices with only 3,300 and 2,624 alumni from Ivy League colleges, respectively. if (typeof jQuery == 'undefined') { document.write(''); } .first{clear:both;margin-left:0}.one-third{width:31.034482758621%;float:left;margin-left:3.448275862069%}.two-thirds{width:65.51724137931%;float:left}form.ebook-styles .af-element input{border:0;border-radius:0;padding:8px}form.ebook-styles .af-element{width:220px;float:left}form.ebook-styles .af-element.buttonContainer{width:115px;float:left;margin-left: 6px;}form.ebook-styles .af-element.buttonContainer input.submit{width:115px;padding:10px 6px 8px;text-transform:uppercase;border-radius:0;border:0;font-size:15px}form.ebook-styles .af-body.af-standards input.submit{width:115px}form.ebook-styles .af-element.privacyPolicy{width:100%;font-size:12px;margin:10px auto 0}form.ebook-styles .af-element.privacyPolicy p{font-size:11px;margin-bottom:0}form.ebook-styles .af-body input.text{height:40px;padding:2px 10px !important} form.ebook-styles .error, form.ebook-styles #error { color:#d00; } form.ebook-styles .formfields h1, form.ebook-styles .formfields #mg-logo, form.ebook-styles .formfields #mg-footer { display: none; } form.ebook-styles .formfields { font-size: 12px; } form.ebook-styles .formfields p { margin: 4px 0; } Get The Full Henry Singleton Series in PDF Get the entire 4-part series on Henry Singleton in PDF. Save it to your desktop, read it on your tablet, or email to your colleagues (function($) {window.fnames = new Array(); window.ftypes = new Array();fnames[0]='EMAIL';ftypes[0]='email';}(jQuery));var $mcj = jQuery.noConflict(true); Q4 2022 hedge fund letters, conferences and more   Ranking Company Number of Ivy League alumni 1 Amazon 18,661 2 Accenture 14,397 3 IBM 12,471 4 Google 9,637 5 Apple 7,880 6 Oracle 5,160 7 SAP 3,576 8 Cisco 3,486 9 Microsoft 3,300 10 Huawei 2,624 The World's Biggest Tech Companies Are Most Likely To Hire University Of Washington Graduates Graduates of the University of Washington are more likely than graduates from any other US university to work at one of the world's biggest tech companies. We counted 16,343 graduates on LinkedIn who are now working at one of the world's most valuable tech companies. Ranking University Number of alumni 1 University of Washington 16,343 2 University of California, Berkeley 15,307 3 Stanford University 13,570 4 University of Southern California 11,240 5 University of Texas at Austin 11,220 6 Georgia Institute of Technology 10,295 7 University of California, Los Angeles 10,149 8 University of Illinois at Urbana-Champaign 9,024 9 Carnegie Mellon University 8,885 10 Massachusetts Institute of Technology 8,338 Which US Colleges The 'Big Five' Are Most Likely To Hire From University of Washington graduates are the top choice for Amazon and Microsoft. In fact, University of Washington alumni have a 264% greater chance of being hired by Microsoft than the 2nd best university, Georgia Institute of Technology. Stanford University alumni are the most likely to get hired by Google and Apple. Facebook predominately hire University of California--Berkeley alumni (1,102 alumni). Amazon Amazon is most likely to hire University of Washington graduates over any other US college with 4,540 alumni currently working there. University of Southern California alumni ranked as the 2nd most likely to get hired by Amazon (2,085 alumni), and the University of California - LA ranked in 3rd place (1,786 alumni). Ranking College Number of alumni 1 University of Washington 4,540 2 University of Southern California 2,085 3 University of California-Los Angeles 1,786 4 Georgia Institute of Technology 1,681 5 University of California-Berkeley 1,573 Apple Stanford University alumni are Apple's top choice with 2,322 of Stanford's graduates now working for them. In close second with 2,216 alumni is the University of California - Berkeley and in 3rd place, the University of Texas - Austin (1,540 alumni). Ranking College Number of alumni 1 Stanford University 2,322 2 University of California--Berkeley 2,216 3 University of Texas--Austin 1,540 4 University of California--Los Angeles 1,485 5 University of Southern California 1,433 Facebook Facebook is most likely to hire Berkeley alumni with 1,102 alumni now working for the tech giant. Stanford University graduates came in 2nd place (997 alumni) and Carnegie Mellon University in 3rd place (757). Ranking College Number of alumni 1 University of California--Berkeley 1,102 2 Stanford University 997 3 Carnegie Mellon University 757 4 University of California--Los Angeles 651 5 University of Washington 630 Google Stanford University alumni are also most likely to get hired by Google than any other US college with an impressive 3,990 alumni now working at Google. Ranking College Number of alumni 1 Stanford University 3,990 2 University of California--Berkeley 3,923 3 Carnegie Mellon University 2,668 4 University of California--Los Angeles 2,052 5 University of Southern California 2,031 Microsoft Microsoft is more like hire University of Washington alumni than any other US college graduates with a whopping 6,251 alumni now working for them. In fact, University of Washington alumni have a 264% greater chance of being hired by Microsoft than the 2nd best university, Georgia Institute of Technology which has 1,719 alumni now working for Microsoft. Ranking College Number of alumni 1 University of Washington 6,251 2 Georgia Institute of Technology 1,719 3 University of Southern California 1,213 4 University of Illinois--Urbana-Champaign 1,212 5 Washington State University 1,167 Which States Are Most Likely To Produce Alumni For The World's Biggest Tech Companies? California's universities have the most alumni working at tech companies California reigned in the number one position, with a colossal 73,617 alumni now working for a tech giant. New York ranks in second place with 43,162 alumni and Massachusetts in third place with 34,499 alumni. Ranking State Number of alumni 1 California 73,617 2 New York 43,162 3 Massachusetts 34,499 4 Illinois 23,767 5 Texas 23,149 6 Washington 22,893 7 Pennsylvania 20,938 8 Georgia 14,572 9 Florida 13,608 10 Indiana 13,167 The top university per state in the top list that has the most alumni working at tech giants The university in California where graduates are most likely to get hired by a tech company is the University of California, Berkeley (15,307 alumni). Below you can find which university in each state in the top list has the most alumni working for tech companies. Only 43 states are included in the table as our analysis only looked at the top 100 public and private colleges in the US. State Top University Number of Alumni Alabama Auburn University 1272 Arizona University of Arizona 4034 Arkansas University of Arkansas 806 California University of California--Berkeley 15307 Colorado University of Colorado--Boulder 3706 Connecticut Yale University 2217 Delaware University of Delaware 1298 District of Columbia George Washington University 2981 Florida University of Florida 5985 Georgia Georgia Institute of Technology 10295 Hawaii University of Hawaii--Manoa 893 Idaho University of Idaho 666 Illinois University of Illinois--Urbana-Champaign 9024 Indiana Purdue University--West Lafayette 6611 Iowa Iowa State University 1728 Kansas University of Kansas 1483 Kentucky University of Kentucky 2160 Louisiana Tulane University 580 Maine University of Maine 295 Maryland University of Maryland--College Park 5528 Massachusetts Massachusetts Institute of Technology 8338 Michigan Michigan State University 3562 Minnesota University of Minnesota--Twin Cities 3687 Mississippi Mississippi State University 603 Missouri Washington University in St. Louis 1499 Nebraska University of Nebraska--Lincoln 1088 New Hampshire Dartmouth College 1434 New Jersey Princeton University 2267 New York Cornell University 8082 North Carolina Duke University 3396 Ohio Ohio State University--Columbus 4010 Oklahoma University of Oklahoma 1320 Oregon Oregon State University 2519 Pennsylvania Carnegie Mellon University 8885 Rhode Island Brown University 2139 South Carolina Clemson University 1434 Tennessee Vanderbilt University 1481 Texas University of Texas--Austin 11220 Utah Brigham Young University--Provo 3064 Vermont University of Vermont 670 Virginia Virginia Tech 3752 Washington University of Washington 16343 Wisconsin University of Wisconsin--Madison 4715 Q&A With Carrus.io We spoke to Misha Yurchenko at Carrus.io to find out more about the hiring process at tech companies. Carrus.io is a platform that connects job seekers to career and interview coaches experienced in hiring for tech companies such as Facebook, Amazon, and Google. Q: In the hiring process, is it likely that a Big Tech company would show a preference for a graduate of a prestigious university, for example those in the Russell Group or Ivy League, over an applicant that has attended a non-prestigious university? A: This still happens, but your alma mater is a lot less of a priority than it was 10 years ago. There's a huge push for diversity and inclusion at most tech companies right now; they have quotas to meet. Market research company Link Humans created this ranking and summary of some of the top tech companies and their diversity initiatives. There's still a long way to go, but I think we'll continue to see the floodgates opening for people from all sorts of different backgrounds. Q: Is elitism more or less likely to exist in the hiring process or the career progression of big tech companies vs the most prestigious companies in other industries, such as finance or media? A: It can go both ways and the lines aren't always so clear. We actually find a lot of elitism in traditional industries outside of tech that are ingrained in old ways of thinking (think Mad Men-esque workplaces). I worked in the recruitment industry, for example, which isn't always the most welcoming towards women. Tech companies can definitely fall into their own traps and groupthink, too, but generally do a better job, partly because they face more external and internal pressure to be inclusive. All that said, most companies nowadays are actually evolving to have a strong tech focus and pulling people from tech to join their companies. For example, the New York Times has more focus on digital and mobile than offline. Starbucks sells coffee, but they're actually turning into a huge data company. Home Depot hired over 1,000 tech professionals with the goal to move most sales online and revamp their retail experience. There are tons of examples like this of ongoing digital transformation that will very likely bring a big shift in the culture of these companies!.....»»

Category: blogSource: valuewalkJan 9th, 2023

The rise and fall of Sears. Once the world"s largest retailer, it now has just 15 stores left. Here"s how changing consumer habits took down a one-time powerhouse.

Sears started as a humble mail-order service and rose to become the world's largest retailer. Now, it operates less than two dozen stores nationwide. Workers remove a sign from the outside of a Sears department store in Nanuet, New York.Reuters Sears was once the largest retailer in the world, with a sky-scraping headquarters and legacy brand status. What started as a humble mail-order watch and jewelry service in 1886 soon shot to popularity through its affordable catalogs. But changes in consumer behavior and the retail landscape led to dropping sales and shuttered stores. Here is a timeline of the rise and fall of Sears. Richard W. Sears founded the R.W. Sears Watch Company in 1886 in Minneapolis, Minnesota.Portrait of businessman Richard W. Sears.Chicago History Museum/Getty ImagesSears, a railroad station agent, started the mail-order watch and jewelry company as a way to supplement his income.Sears relocated his business to Chicago in 1887 and, shortly after, hired Alvah C. Roebuck as a watch repairman. Sears sold his watch business in 1889.In 1893, he founded another mail-order service with Roebuck, which the two named Sears, Roebuck and Company.In 1895, Richard W. Sears began planning and writing the soon-to-be-famous Sears catalogs.Cover of a Sears Roebuck & Co. Consumer's Guide, Fall 1897.Bettman/Getty ImagesAfter being purchased and reorganized by clothing manufacturing mogul Julius Rosenwald, the company began to grow exponentially.The company specialized in selling low-cost merchandise to rural areas that did not have access to stores. These would-be customers would receive the Sears catalog in the mail. The catalogs shot the company to stratospheric popularity — today, many compare its rise to fame to that of Amazon.The popular catalogs offered discounts on many items.An advertisement for the Acme Oak Heater stove by the Sears, Roebuck and Company circa 1900.Jay Paull/Getty ImagesSimilar to a "no money down" offer, customers could send their Sears catalog ads to a company, receive the product, and pay for it once it arrived and they had inspected it.Three years after Sears held its IPO — becoming the first major US retailer to do so — clothing mogul Julius Rosenwald took over as president.Clothing manufacturing mogul Julius Rosenwald took over as president in 1909.Bain News Service/Buyenlarge/Getty ImagesIn 1906, Sears became the first major US retailer to sell its stock in an initial public offering. Goldman Sachs handled the IPO at the time. Preferred stock traded at $97.50 a share.That year, Sears also opened its catalog plant and the Sears Merchandise Building Tower in Chicago.In 1909, Rosenwald took over as president of the company.But at the end of World War I, farmers were hit with a severe depression, and Sears fell into "dire" financial shape.Sears catalog from the 1920s.Fotosearch/Getty ImagesRosenwald was able to save Sears from the brink of bankruptcy by pledging $21 million of his personal fortune and other assets to save the company. By 1922, Sears had regained financial stability.Rosenwald stepped down as Sears president in 1924, after which he dedicated his life to philanthropy. He donated millions of dollars to public schools, colleges, universities, museums, Jewish charities, and black institutions.In 1925, the first Sears retail store opened in Chicago under the direction of business executive General Robert E. Wood.Sears Roebuck and Company store, 1930.Angus B. McVicar/Wisconsin Historical Society/Getty ImagesIn 1928, Wood officially became president of Sears, Roebuck and Company. He would stay on at the company in various high-level positions until his retirement in 1954. As the automobile became increasingly popular, Wood reasoned that customers could travel from near and far to visit Sears' department stores.Sears, Roebuck and Co in El Paso, Texas, circa 1940.Fotosearch/Getty ImagesThe first retail location set off a massive chain reaction of store openings. Seven more stores opened in 1925 alone, and by 1931, in-store sales had topped mail-order sales. Sears also founded its Allstate Insurance Company in 1931 as a response to the rise in automobile ownership.In 1945, Sears reported $1 billion in sales — the equivalent of over $16 billion today.Shoppers looking into windows of a Sears Roebuck store in 1943.Gordon Coster/The LIFE Picture Collection/Getty ImagesSears, relatively unfazed by the crash of 1929 and the subsequent Great Depression, saw its sales continued to hold steady.Its sales in 1945 equate to about $16.4 billion today.Sears stores were extremely popular, and the company's catalogs and "Wish Books" continued to bring in sales.The Sears and Roebuck Department Store in Dayton Ohio, circa 1947.Bettman/Getty ImagesSears was one of the first department stores to cater to both men and women, as well as sell household goods and appliances.Consumers loved Sears' signature low prices, and soon Sears' main market shifted from urban to suburban consumers.Stoves on display at Sears Roebuck in 1957.Frank Scherschel/The LIFE Picture Collection/Getty ImagesThe Sears name soon became "synonymous with the suburban shopping experience."With an increased focus on suburban living, Sears began to pay more attention to its automobile ventures.In 1951, the company released its newest mail-order automobile, the "Allstate," named after the Sears-owned insurance company.The "Allstate" mail-order automobile available from Sears, Roebuck and Company, 1951.PhotoQuest/Getty ImagesThe company had been selling cars as far back as 1909, but this stylish ride was certainly an upgrade from its motor buggy.Sears reached new heights in 1969 by breaking ground on the Sears Tower in Chicago.Chicago's Willis Tower, formerly the Sears Tower.Jason Reed/ReutersThe 110-story building cost $100 million to build. Upon its completion in 1973, it was the tallest building in the world — it would hold this title for more than two decades.The Sears Tower, which was renamed the Willis Tower 36 years later, was used as an office for Sears' main merchandising group and company headquarters. Space in the building was also rented to outside tenants.From the end of World War II into the 1970s, Sears sales were at an all-time high.Manager Don G. Marvin awaits clearing of construction gear for a Sears opening in Colorado in 1974.The Denver Post/Getty ImagesBy the middle of the century, Sears had over 350,000 employees in its ranks and was able to provide many of them a clear path to the middle class.Employees were paid well, and the company's benefits allowed them to retire comfortably, according to The New York Times.As malls grew in popularity throughout the 1980s, Sears became an anchor store in many plazas. However, the business was shifting.Shoppers walking into a Sears store in a mall in February 1983.Lee Balterman/The LIFE Images Collection/Getty ImagesIn the early 1980s, Sears employees were informed they would no longer receive commissions from sales — this included sales of items like vacuum cleaners, cordless drills, and ready-to-wear clothing.Changes came to the store floors, too.A clerk marks down Items in the sporting goods department at Sears.Glen Martin/The Denver Post/Getty ImagesBefore, store managers could choose which items they stocked in their stores. However, in an effort to make Sears stores more uniform, this option was taken away.Many store managers felt slighted by this, as they could no longer stock more of the items they knew their customers wanted, according to CNBC. In 1986, Sears expanded into financial services with the launch of the Discover Card through Dean Witter Financial Services Group, a subsidiary of Sears.Discover Card.Charlie Riedel/APEarly versions of the Discover Card included small pictures of the Sears Tower.According to the company, the first purchase made with a Discover Card was on September 17, 1985, by an employee at a Sears store in Atlanta, Georgia. The purchase was for $26.77. In 1990, Sears lost its spot to Walmart as America's biggest retailer.A Sears customer shops for appliances in 2003.Tim Boyle/Getty ImagesThat year, Walmart's sales rose to $32.6 billion, up 26%. Sears' sales, on the other hand, only rose 1.2%. However, the company's sales for 1990 still landed at $31.9 billion, according to CNBC.In 1993, Sears discontinued its famous catalog to focus on in-store retail operations. Two years later, in 1995, the company spun out its largest subsidiary, the Allstate Corporation, which had grown from the insurance company Sears founded in 1931.In an effort to attract more customers, the company also began offering car and electronic repair services in addition to its regular inventory of home goods, clothing, and appliances.In the early 2000s, Kmart acquired Sears to form a new major company, Sears Holdings Corporation.Kmart, Sears, and Lands' End.Colin McConnell/Toronto Star/James Leynse/Corbis/Tim Boyle/Getty ImagesSeveral changes were afoot in the early 2000s. In 2002, Sears purchased clothing company Lands' End for $2 billion. The next year, Sears sold its credit-card business to Citigroup in order to focus exclusively on its retail operations. At the time, the credit-card business was outpacing retail and accounted for 60% of Sears' annual profits.In 2005, Sears completed its merger with Kmart, which had surpassed Sears to become the second-largest retailer in the United States, behind Walmart.After Sears was purchased for a whopping $11 billion, both companies became subsidiaries of the newly formed Sears Holdings Corporation, with hedge fund manager Eddie Lampert as its chairman.In 2007, Sears' stock hit an all-time high at $195.18 per share.View from inside the closed doors of a Sears department store.James Leynse/Corbis/Getty ImagesSales rose after Lampert became chairman of the newly combined company.However, retail was becoming increasingly dependent on online sales. As soon as sales had begun to climb, they just as quickly began to drop. In 2013, Lampert was made CEO in the hopes that he could turn sales around, but the company's problems had only just begun.In 2015, Sears' revenue fell from $36.2 billion two years prior to $25.1 billion.A sign announcing the store will be closing hangs above a Sears store on August 24, 2017, in Chicago, Illinois.Scott Olson/Getty ImagesIncreased competition with other big-box retailers and the rise of Amazon and online shopping took a bite out of Sears' profits. Within the company, tensions were brewing between lower-level management, employees, and Eddie Lampert. In an effort to cut costs and turn the company around, Lampert began ordering underperforming stores nationwide to close.In 2016, based on employee reviews from Glassdoor, 24/7 Wall St reported that Lampert was the most hated CEO in the US.Many stores were left empty after employees were cut and the company's Shop Your Way rewards program began to flounder.A Sears store in Canada is almost completely empty in January 2018.Richard Lautens/Toronto Star/Getty ImagesEmployees blamed deteriorating stores and employee shortages on Lampert."There are so many people running for the door not just because the ship is sinking, but because the captain of the ship is screaming at them, blaming it on them, and telling them it's their fault," one former vice president told Insider in 2016. As sales fell even further, Sears had no choice but to close many of its locations.Pedestrians pass the windows of the closing Sears store at the CambridgeSide Galleria in Cambridge, Massachusetts, on October 15, 2018.David L. Ryan/The Boston Globe/Getty ImagesIn 2010, the company operated more than 3,500 Kmart and Sears stores. However, more than 3,000 locations have since closed. Sears sales had tumbled from $43 billion in 2010 to less than $17 billion in 2017.In October 2018, the company officially filed for Chapter 11 bankruptcy.A Sears department store stands in Brooklyn on January 07, 2019, in New York City.Spencer Platt/Getty ImagesAt the time of the bankruptcy filing, Sears reported that fewer than 700 stores were still open and 68,000 employees remained.Lampert stepped down as CEO after the company filed for bankruptcy but stayed on as chairman to oversee the bankruptcy proceedings.In an effort to save the company from closing all of its stores, Lampert purchased the company out of bankruptcy four months later. The $5 billion deal preserved around 45,000 jobs from termination and meant that roughly 425 Sears and Kmart stores would remain open.Sears took legal action against Lampert.Eddie Lampert.ReutersIn April 2019, Sears sued the former CEO and others, including former board members, claiming they had stolen billions of dollars from the retailer.Lampert had turned down a $1.6 billion offer from Tommy Hilfiger to buy Lands' End, and Sears accused him of doing so to protect his hedge fund's equity stake in Lands' End. The suit also accused Lampert of having "reaped at least $490 million from a spinoff of Lands' End that did not benefit Sears.""Altogether, Lampert caused more than $2 billion of assets to be transferred to himself and Sears' other shareholders and beyond the reach of Sears' creditors," the lawsuit alleged. In a statement at the time, Lampert's ESL Investments called the allegations "misleading or just flat wrong." The suit wasn't settled until 2022, when a court approved an agreement to resolve the litigation. Sears agreed to a $175 million settlement in which Lampert and the other defendants did not admit to any wrongdoing, according to Retail Dive. The settlement cleared the way for Sears to emerge from bankruptcy. Since then, the company has slashed the number of stores nationwide.Workers remove a sign from the outside of a Sears department store.ReutersWhat was once America's largest retailer now operates just 15 full-line stores in the US — Kmart has only three, down from over 2,000.And in December, Sears Hometown, a home goods division that spun out of Sears in 2012, filed for Chapter 11 bankruptcy protection. After managing to survive two World Wars and the Great Depression, Sears has no doubt fallen victim to what's been dubbed "the retail apocalypse."Read the original article on Business Insider.....»»

Category: smallbizSource: nytDec 19th, 2022

The rise and fall of Elizabeth Holmes, the former Theranos CEO found guilty of wire fraud and conspiracy, who has been sentenced to more than 11 years in prison

Elizabeth Holmes was sentenced to 11.25 years in prison with 3 years of supervised release after being found guilty of fraud and conspiracy. Elizabeth Holmes leaves after a hearing at a federal court in San Jose, California, on July 17, 2019.Reuters/Stephen Lam Elizabeth Holmes dropped out of Stanford at 19 to start Theranos and grew its value to $9 billion. Later, technology flaws were exposed, resulting in a months-long trial where Holmes was found guilty on three counts of wire fraud and one count of conspiracy. Holmes was sentenced to more than 11 years in prison late last month and will begin serving her time on April 27, 2023. In 2014, blood-testing startup Theranos and its founder, Elizabeth Holmes, were on top of the world.Back then, Theranos was a revolutionary idea thought up by a woman hailed as a genius who styled herself as a female Steve Jobs. Holmes was the world's youngest female self-made billionaire, and Theranos was one of Silicon Valley's unicorn startups, valued at an estimated $9 billion. But then it all came crashing down.The shortcomings and inaccuracies of Theranos's technology were exposed, along with the role Holmes played in covering it all up. Holmes was ousted as CEO and charged with "massive fraud," and the company was forced to close its labs and testing centers, ultimately shuttering operations altogether.In January, jurors of a federal court found Holmes guilty on three counts of wire fraud and one count of conspiracy to commit wire fraud. They found her not guilty on four other counts and failed to reach a unanimous verdict on the remaining three counts against her.Holmes has asked the presiding judge in her case to overturn her conviction. In May, Holmes' attorneys argued evidence was "insufficient to sustain the convictions." In early September, a judge tentatively denied Holmes' request.She also filed three motions requesting a new trial, all of which the judge ultimately denied.In late November, Holmes was sentenced to 11 years and 3 months in prison with 3 years of supervised release. She'll report to prison on April 27, 2023.Holmes' former romantic and business partner Ramesh "Sunny" Balwani, was also convicted of fraud, in July. He was found guilty on all 12 fraud-related charges. In early December, he was sentenced to 155 months, or just under 13 years, in prison with three years of probation. He's been ordered to self-surrender on March 15, 2023.Here's how Holmes went from precocious child, to ambitious Stanford dropout, to an embattled startup founder sentenced to prison: Elizabeth Holmes was born on February 3, 1984 in Washington, D.C. Her mom, Noel, was a Congressional committee staffer, and her dad, Christian Holmes, worked for Enron before moving to government agencies like USAID.@eholmes2003/TwitterSource: Elizabeth Holmes/Twitter, CNN, Vanity FairHolmes' family moved when she was young, from Washington, D.C. to Houston.Washington, D.C.Getty ImagesSource: FortuneWhen she was 7, Holmes tried to invent her own time machine, filling up an entire notebook with detailed engineering drawings. At the age of 9, Holmes told relatives she wanted to be a billionaire when she grew up. Her relatives described her as saying it with the "utmost seriousness and determination."Theranos CEO Elizabeth Holmes.REUTERS/Carlo AllegriSource: CBS News, Bad Blood: Secrets and Lies in a Silicon Valley StartupHolmes had an "intense competitive streak" from a young age. She often played Monopoly with her younger brother and cousin, and she would insist on playing until the end, collecting the houses and hotels until she won. If Holmes was losing, she would often storm off. More than once, she ran directly through a screen on the door.Elizabeth Holmes, CEO of Theranos, attends a panel discussion during the Clinton Global Initiative's annual meeting in New York, September 29, 2015.REUTERS/Brendan McDermidSource: Bad Blood: Secrets and Lies in a Silicon Valley StartupIt was during high school that Holmes developed her work ethic, often staying up late to study. She quickly became a straight-A student, and even started her own business: she sold C++ compilers, a type of software that translates computer code, to Chinese schools.Tyrone Siu/ReutersSource: Fortune, Bad Blood: Secrets and Lies in a Silicon Valley StartupHolmes started taking Mandarin lessons, and part-way through high school, talked her way into being accepted by Stanford University’s summer program, which culminated in a trip to Beijing.Yepoka Yeebo / Business InsiderSource: Bad Blood: Secrets and Lies in a Silicon Valley StartupInspired by her great-great-grandfather Christian Holmes, a surgeon, Holmes decided she wanted to go into medicine. But she discovered early on that she was terrified of needles. Later, she said this influenced her to start Theranos.Hollis Johnson/Business InsiderSource: San Francisco Business TimesHolmes went to Stanford to study chemical engineering. When she was a freshman, she became a "president's scholar," an honor which came with a $3,000 stipend to go toward a research project.STANFORD, CA - MAY 22: People ride bikes past Hoover Tower on the Stanford University campus on May 22, 2014 in Stanford, California. According to the Academic Ranking of World Universities by China's Shanghai Jiao Tong University, Stanford University ranked second behind Harvard University as the top universities in the world. UC Berkeley ranked third. (Photo by Justin Sullivan/Getty Images)Justin Sullivan/GettySource: FortuneHolmes spent the summer after her freshman year interning at the Genome Institute in Singapore. She got the job partly because she spoke Mandarin.An office worker walks along the Singapore River front during the lunch hour.Wong Maye-E/APSource: FortuneAs a sophomore, Holmes went to one of her professors, Channing Robertson, and said: "Let's start a company." With his blessing, she founded Real-Time Cures, later changing the company's name to Theranos. Thanks to a typo, early employees’ paychecks actually said "Real-Time Curses."Getty ImagesSource: Bad Blood: Secrets and Lies in a Silicon Valley StartupHolmes soon filed a patent application for a "medical device for analyte monitoring and drug delivery," a wearable device that would administer medication, monitor patients' blood, and adjust the dosage as needed.Reuters/Brian SnyderSource: Fortune, US Patent OfficeBy the next semester, Holmes had dropped out of Stanford altogether, and was working on Theranos in the basement of a college house.Jeff Chiu/APSource: Wall Street JournalTheranos's business model was based around the idea that it could run blood tests, using proprietary technology that required only a finger pinprick and a small amount of blood. Holmes said the tests would be able to detect medical conditions like cancer and high cholesterol.Theranos Chairman, CEO and Founder Elizabeth Holmes (L) and TechCrunch Writer and Moderator Jonathan Shieber speak onstage at TechCrunch Disrupt at Pier 48 on September 8, 2014 in San Francisco, CaliforniaSteve Jennings/Getty ImagesSource: Wall Street JournalHolmes started raising money for Theranos from prominent investors like Oracle founder Larry Ellison and Tim Draper, the father of a childhood friend and the founder of prominent VC firm Draper Fisher Jurvetson. Theranos raised more than $700 million, and Draper has continued to defend Holmes.Investor Tim Draper (right).CNBCSource: SEC, CrunchbaseHolmes took investors' money on the condition that she wouldn't have to reveal how Theranos' technology worked. Plus, she would have final say over everything having to do with the company.JP Yim/GettySource: Vanity FairThat obsession with secrecy extended to every aspect of Theranos. For the first decade Holmes spent building her company, Theranos operated in stealth mode. She even took three former Theranos employees to court, claiming they had misused Theranos trade secrets.Kimberly White/GettySource: San Francisco Business TimesHolmes' attitude toward secrecy and running a company was borrowed from a Silicon Valley hero of hers: former Apple CEO Steve Jobs. Holmes started dressing in black turtlenecks like Jobs, decorated her office with his favorite furniture, and like Jobs, never took vacations.Steve Jobs.Justin Sullivan/Getty ImagesSource: Vanity FairEven Holmes's uncharacteristically deep voice may have been part of a carefully crafted image intended to help her fit in in the male-dominated business world. In ABC's podcast on Holmes called "The Dropout," former Theranos employees said the CEO sometimes "fell out of character," particularly after drinking, and would speak in a higher voice.Former U.S. President Bill Clinton and Elizabeth Holmes, CEO of Theranos, during the Clinton Global Initiative's annual meeting in New York.Lucas Jackson/ReutersSource: Bad Blood: Secrets and Lies in a Silicon Valley Startup, The CutHolmes was a demanding boss, and wanted her employees to work as hard as she did. She had her assistants track when employees arrived and left each day. To encourage people to work longer hours, she started having dinner catered to the office around 8 p.m. each night.TheranosSource: Bad Blood: Secrets and Lies in a Silicon Valley StartupMore behind-the-scenes footage of what life was like at Theranos was revealed in leaked videos obtained by the team behind the HBO documentary "The Inventor: Out for Blood in Silicon Valley." The more than 100 hours of footage showed Holmes walking around the office, scenes from company parties, speeches from Holmes and Balwani, and Holmes dancing to "U Can't Touch This" by MC Hammer.Theranos founder Elizabeth Holmes at the company's headquarters.Courtesy HBOSource: Business InsiderShortly after Holmes dropped out of Stanford at age 19, she began dating Theranos president and COO Sunny Balwani, who was 20 years her senior. The two met during Holmes' third year in Stanford’s summer Mandarin program, the summer before she went to college. She was bullied by some of the other students, and Balwani had come to her aid.Footage of Sunny Balwani presenting."60 Minutes"Source: Bad Blood: Secrets and Lies in a Silicon Valley StartupBalwani became Holmes' No. 2 at Theranos despite having little experience. He was said to be a bully, and often tracked his employees' whereabouts. Holmes and Balwani eventually broke up in spring 2016 when Holmes pushed him out of the company.Sunny Balwani pictured in January 2019.Justin Sullivan/Getty ImagesSource: Bad Blood: Secrets and Lies in a Silicon Valley StartupIn 2008, the Theranos board decided to remove Holmes as CEO in favor of someone more experienced. But over the course of a two-hour meeting, Holmes convinced them to let her stay in charge of her company.Jamie McCarthy / GettySource: Bad Blood: Secrets and Lies in a Silicon Valley StartupAs Theranos started to rake in millions of funding, Holmes became the subject of media attention and acclaim in the tech world. She graced the covers of Fortune and Forbes, gave a TED Talk, and spoke on panels with Bill Clinton and Alibaba's Jack Ma.Elizabeth Holmes with former President Bill Clinton, left, and Alibaba cofounder Jack Ma.Andrew Burton/Getty ImagesSource: Vanity FairTheranos quickly began securing outside partnerships. Capital Blue Cross and Cleveland Clinic signed on to offer Theranos tests to their patients, and Walgreens made a deal to open Theranos testing centers in their stores. Theranos also formed a secret partnership with Safeway worth $350 million.A Theranos testing center inside a Walgreens.Melia Robinson/Business InsiderSource: Wired, Business InsiderIn 2011, Holmes hired her younger brother, Christian, to work at Theranos, although he didn’t have a medical or science background. Christian Holmes spent his early days at Theranos reading about sports online and recruiting his Duke University fraternity brothers to join the company. People dubbed Holmes and his crew the "Frat Pack" and "Therabros."Elizabeth Holmes and her brother, Christian.Andrew Harrer/Bloomberg via Getty ImagesSource: Bad Blood: Secrets and Lies in a Silicon Valley StartupAt one point, Holmes was the world's youngest self-made female billionaire with a net worth of around $4.5 billion.Kimberly White/Getty Images for Breakthrough PrizeSource: ForbesHolmes was obsessed with security at Theranos. She asked anyone who visited the company’s headquarters to sign non-disclosure agreements before being allowed in the building, and had security guards escort visitors everywhere — even to the bathroom.Michael Dalder/Reuters Holmes hired bodyguards to drive her around in a black Audi sedan. Her nickname was "Eagle One." The windows in her office had bulletproof glass.Source: Bad Blood: Secrets and Lies in a Silicon Valley StartupAround the same time, questions were being raised about Theranos' technology. Ian Gibbons — chief scientist at Theranos and one of the company's first hires — warned Holmes that the tests weren't ready for the public to take, and that there were inaccuracies in the technology. Outside scientists began voicing their concerns about Theranos, too.Melia Robinson/Tech InsiderSource: Vanity Fair, Business InsiderBy August 2015, the FDA began investigating Theranos, and regulators from the government body that oversees laboratories found "major inaccuracies" in the testing Theranos was doing on patients.Mike Segar/ReutersSource: Vanity FairBy October 2015, Wall Street Journal reporter John Carreyrou published his investigation into Theranos's struggles with its technology. Carreyrou's reporting sparked the beginning of the company's downward spiral.Wall Street Journal reporter John Carreyrou.CBS "60 Minutes"Source: Wall Street JournalCarreyrou found that Theranos' blood-testing machine, named Edison, couldn't give accurate results, so Theranos was running its samples through the same machines used by traditional blood-testing companies.Carlos Osorio/APSource: Wall Street JournalHolmes appeared on CNBC's "Mad Money" shortly after the WSJ published its story to defend herself and Theranos. "This is what happens when you work to change things, and first they think you're crazy, then they fight you, and then all of a sudden you change the world," Holmes said.CNBC/YouTubeSource: CNBCBy 2016, the FDA, Centers for Medicare & Medicaid Services, and SEC were all looking into Theranos.GettySource: Wall Street Journal, WiredIn July 2016, Holmes was banned from the lab-testing industry for two years. By October, Theranos had shut down its lab operations and wellness centers.Mike Blake/ReutersSource: Business InsiderIn March 2018, Theranos, Holmes, and Balwani were charged with "massive fraud" by the SEC. Holmes agreed to give up financial and voting control of the company, pay a $500,000 fine, and return 18.9 million shares of Theranos stock. She also isn't allowed to be the director or officer of a publicly traded company for 10 years.Jeff Chiu/APSource: Business InsiderDespite the charges, Holmes was allowed to stay on as CEO of Theranos, since it's a private company. The company had been hanging on by a thread, and Holmes wrote to investors asking for more money to save Theranos. "In light of where we are, this is no easy ask," Holmes wrote.Kimberly White/Getty Images for FortuneSource: Business InsiderIn Theranos' final days, Holmes reportedly got a Siberian husky puppy named Balto that she brought into the office. However, the dog wasn't potty trained, and would go to the bathroom inside the company's office and during meetings.A Siberian husky (not Holmes' dog).Kateryna Orlova/ShutterstockSource: Vanity FairIn June 2018, Theranos announced that Holmes was stepping down as CEO. On the same day, the Department of Justice announced that a federal grand jury had charged Holmes, along with Balwani, with nine counts of wire fraud and two counts of conspiracy to commit wire fraud.Elizabeth Holmes, founder and CEO of Theranos, speaks at the Wall Street Journal Digital Live (WSJDLive) conference at the Montage hotel in Laguna Beach, California, October 21, 2015.Mike Blake/ReutersSource: Business Insider, CNBCTheranos sent an email to shareholders in September 2018 announcing that the company was shutting down. Theranos reportedly said it planned to spend the next few months repaying creditors with its remaining resources.Mike Blake/ReutersSource: Wall Street JournalAround the time Theranos' time was coming to an end, Holmes made her first public appearance alongside William "Billy" Evans, a 27-year-old heir to a hospitality property management company in California. The two reportedly first met in 2017, and were seen together in 2018 at Burning Man, the art festival in the Nevada desert.Jim Rankin/Toronto Star via Getty ImagesSource: Daily MailHolmes is said to wear Evans' MIT "signet ring" on a chain around her neck, and the couple reportedly posts photos "professing their love for each other" on a private Instagram account. Evans' parents are reportedly "flabbergasted" at their son's decision to marry Holmes.—Nick Bilton (@nickbilton) February 21, 2019Source: Vanity Fair, New York PostIt's unclear where Holmes and Evans currently reside, but they were previously living in a $5,000-a-month apartment in San Francisco until April 2019. The apartment was located just a few blocks from one of the city's top tourist attractions, the famously crooked block of Lombard Street.Lombard Place Apartments, where Holmes used to live.Rent SF NowSource: Business InsiderIt was later reported that Holmes and Evans got engaged in early 2019, then married in June in a secretive wedding ceremony. Former Theranos employees were reportedly not invited to the wedding, according to Vanity Fair.Gilbert Carrasquillo/Getty Images; Samantha Lee/Business InsiderSource: Vanity Fair, New York PostHolmes' and Balwani's cases have since been separated.Justin Silva/Getty, Stephen Lam/Reuters, Business InsiderSource: Department of Justice, Business InsiderBesides the criminal case, Holmes was also involved in a number of civil lawsuits, including one in Arizona brought by former Theranos patients over inaccurate blood tests. The lawyers representing her in the Arizona case said in late 2019 they hadn't been paid over a year and asked to be removed from Holmes' legal team.Former Theranos CEO Elizabeth Holmes leaves after a hearing at a federal court.Reuters/Stephen LamSource: Business InsiderHolmes' lawyers in the federal case had tried to get the government's entire case thrown out. In February 2020, Holmes caught a break after some of the charges against her were dropped when a judge ruled that some patients didn't suffer financial loss.Brendan McDermid/ReutersSource: Business InsiderAmid the coronavirus outbreak, Holmes' lawyers asked the judge in April 2020 to deem the case "essential" so the defense team could defy lockdown orders and continue to travel and meet face-to-face. The judge said he was "taken aback" by the defense's pleas to violate lockdown.Reuters/Robert GalbraithSource: Business Insider It soon become clear that the pandemic — and the health risks associated with assembling a trial in one — would make the July trial date unrealistic. Through hearings held on Zoom, the presiding judge initially pushed the trial back to October 2020 and later postponed it further to March 2021.Passengers wear masks as they walk through LAX airport.Reuters/Lucy NicholsonSource: Business Insider In March 2021, Holmes requested another delay to the trial because she was pregnant. She asked to push back the trial to August 31, and her request was granted. Holmes reportedly gave birth to the child in July.Nhat V. Meyer/MediaNews Group/Mercury News via Getty ImagesSource: Business Insider, CNBCHeading into the trial, Holmes felt "wronged, like Salem-witch-trial wronged," says a person who used to work with her closely.Holmes, right, leaving the Robert F. Peckham Federal Building in San Jose, California with her defense team on May 4, 2021.Nhat V. Meyer/MediaNews Group/Mercury News via Getty ImagesSource: Business InsiderThe trial kicked off in September. In opening statements, prosecutors argued that, "Out of time and out of money, Elizabeth Holmes decided to lie." Meanwhile, the defense argued that although Theranos ultimately crumbled, "Failure is not a crime. Trying your hardest and coming up short is not a crime."Theranos founder Elizabeth Holmes arrives at the Robert F. Peckham Federal Building with her defense team on August 31, 2021 in San Jose, California.Ethan Swope/Getty ImagesSource: Business Insider The list of possible witnesses for the trial named roughly 200 people, including the likes of Rupert Murdoch, Henry Kissinger, James Mattis, and Holmes herself.Theranos founder Elizabeth Holmes leaves the Robert F. Peckham U.S. Courthouse with her mother, Noel Holmes, during her trial.Brittany Hosea-Small/ReutersSource: Business InsiderIn the end, the trial featured testimony from just over 30 witnesses.Vicki Behringer/ReutersSource: Business InsiderOver the course of 11 weeks, prosecutors called 29 witnesses to testify — including former Theranos employees, investors, patients, and doctors — before resting their case in November.Vicki BehringerSource: Business Insider The defense then began making its case, calling just three witnesses, including Holmes herself.Jane Tyska/Digital First Media/The Mercury News via Getty ImagesSource: Business InsiderOn the stand, Holmes said Balwani emotionally and sexually abused her during their relationship.Former Theranos COO Ramesh "Sunny' Balwani leaves the Robert F. Peckham U.S. Federal Court on June 28, 2019 in San Jose, California.Justin Sullivan/Getty ImagesSource: Business InsiderHolmes also admitted that she added some pharmaceutical companies' logos to Theranos' reports without authorization. Investors previously said they took some reassurance in those reports because, based on the logos, they thought major pharmaceutical companies had validated Theranos' technology. Holmes said she added the logos to convey that work was done in partnership with those companies, but in hindsight she wishes she had "done it differently."Justin Sullivan/Getty ImagesSource: Business InsiderHolmes also acknowledged on the stand that she hid Theranos' use of modified commercial devices from investors. She said she did this because company counsel told her that alterations the company made to the machines were trade secrets and needed to be protected as such.Brittany Hosea-Small/ReutersSource: Business InsiderHolmes spent seven days on the stand before the defense rested its case in early December.Theranos founder Elizabeth Holmes arrives to attend her fraud trial at federal court in San Jose, California, U.S., December 16, 2021.Peter DaSilva/ReutersSource: Business InsiderIn closing arguments, prosecutors argued that Holmes "chose fraud over business failure" while the defense argued she was "building a business, not a criminal enterprise."Elizabeth Holmes walks into federal court in San Jose, Calif., Friday, Dec. 17, 2021.Nic Coury/Associated PressSource: Business InsiderAfter 15 weeks of trial, Holmes' case headed to a jury of eight men and four women on December 17.Elizabeth Holmes, founder and former CEO of blood testing and life sciences company Theranos, leaves the courthouse with her husband Billy Evans after the first day of her fraud trial in San Jose, California on September 8, 2021.Nick Otto/AFP/Getty ImagesSource: Business InsiderJurors deliberated for a total of seven days over the next few weeks before telling the court on January 3 that they were deadlocked on three of the 11 charges against Holmes. The judge read off some jury instructions to the group in court before instructing them to go back and deliberate further.Kate Munsch/ReutersSource: Business InsiderHours later, the jury returned a mixed verdict for Holmes, finding her guilty on one count of conspiracy to defraud investors and three counts of wire fraud. They found her not guilty on four other counts and failed to reach a verdict on the remaining three counts.Justin Sullivan/Getty ImagesSource: Business InsiderThe counts Holmes was found guilty of were all related to investments; she wasn't convicted on any of the charges involving patients who received inaccurate test results.David Odisho/Getty ImagesSource: Business InsiderHolmes faced the possibility of decades in prison. Each count carries a maximum 20-year prison sentence, a $250,000 fine, and a requirement to pay victims restitution.AP Photo/Nic Coury, FileSource: Business Insider Legal experts told Insider it's unlikely Holmes will get 20 years at sentencing, but she probably won't get off without serving any time either.Justin Sullivan/Getty ImagesSource: Business InsiderHolmes was not taken into custody following the verdict and will remain free until her sentencing on a $500,000 bond secured by property.Peter DaSilva/ReutersSource: Business InsiderSince the conviction, Holmes and Theranos have been the focus of a Hulu limited series, "The Dropout," based on the ABC News podcast of the same name.Amanda Seyfried in "The Dropout" (left); Elizabeth Holmes (right)Beth Dubber/Hulu; Steve Jennings/Getty Images for TechCrunchSource: Business InsiderHolmes is played by Amanda Seyfried in the dramatized series, which asks the question, "How did the world's youngest self-made female billionaire lose it all in the blink of an eye?"Amanda Seyfried in "The Dropout."HuluSource: HuluThe show premiered March 3 and also stars Naveen Andrews as Balwani, Holmes' right-hand man at Theranos.Beth Dubber/Hulu; Michael Short/Bloomberg via Getty ImagesSource: Business Insider Now, Holmes is pleading with a judge to toss her conviction.APSource: Business Insider In a 24-page filing on May 27, Holmes' attorneys argued for her acquittal, saying the evidence was "insufficient to sustain the convictions."Nick Otto/AFP via Getty ImagesThey wrote, "Because no rational juror could have found the elements of wire fraud and conspiracy to commit wire fraud beyond a reasonable doubt on this record, the Court should grant Ms. Holmes' motion for judgment of acquittal.""Even if Ms. Holmes committed wire fraud against an investor (she did not) and even if Mr. Balwani committed wire fraud against an investor, that does not prove a conspiratorial agreement between them, nor does it prove that Ms. Holmes willfully joined any agreement," the attorneys continued in the filing.The presiding judge tentatively denied Holmes' request in September.But that wasn't the end: Since then, Holmes also filed three motions requesting a new trial, one of which centered on the testimony of a prosecution witness who allegedly went to Holmes' house in August and expressed regret that he helped convict her.David Odisho/Getty ImagesSource: Business InsiderThe witness was former Theranos lab director Adam Rosendorff. According to an account of the incident from Billy Evans, Holmes' partner, Rosendorff showed up at their home looking "disheveled" and said he felt "guilty."David Odisho/Getty Images"He said when he was called as a witness he tried to answer the questions honestly but that the prosecutors tried to make everybody look bad (in the company)," Evans recalled in an email to Holmes' attorneys about their interaction. "He said that the government made things sound worse than they were when he was up on the stand during his testimony. He said he felt like he had done something wrong. And that this was weighing on him, He said he was having trouble sleeping."In another of Holmes' motions for a new trial, she says the prosecution portrayed her relationship with Balwani differently in their respective trials, to her detriment.In the final motion, Holmes said she was denied emails showing prosecutors failed to take appropriate steps to preserve a Theranos database that she claims would have helped her defense, even though the government furnished these materials when Balwani was on trial.Holmes notched a small victory when the presiding judge ordered an evidentiary hearing regarding Rosendorff's testimony and appearance at her home. This hearing meant that Holmes' sentencing was postponed from October 17 to November 18.Dai Sugano/MediaNews Group/The Mercury News via Getty ImagesSource: Business InsiderThe evidentiary hearing proved useless to Holmes, though, as witness Rosendorff said he stood by his initial testimony and only went to her home because he was "distressed" at the idea of Holmes' child growing up without a mother.Justin Sullivan/Getty Images"At all times the government encouraged me to tell the truth and only the truth," Rosendorff clarified at the hearing."I don't want to help Ms. Holmes," Rosendorff added. "The only person that can help her is herself. She needs to pay her debt to society."On November 8, the presiding judge denied all three of Holmes' motions for a new trial, paving the way for sentencing.Chris Ryan/GettyDays before her sentencing, Holmes' attorneys asked that she get no more than 18 months, preferably under house arrest. They submitted 130 letters from friends and family — spanning everyone from Senator Cory Booker to even an ex-CDC chief — pleading for leniency.In the end, they didn't get their wish. On November 18, Holmes was sentenced to 135 months, or 11.25 years, in prison with 3 years of supervised release.Justin Sullivan/Getty Images"I stand before you taking responsibility for Theranos. I loved Theranos, it was my life's work," Holmes said through tears at the hearing. "I am so, so sorry. I gave everything I had to building and trying to save our company."Judge Edward Davila determined the loss to investors in share value was $21 million. Restitution will be determined at a later date, and Holmes will report to prison on April 27, 2023.Meanwhile, Balwani's trial began in March and also returned a conviction. He was found guilty in July on all 12 counts brought against him, and in early December Balwani was sentenced to nearly 13 years in prison with three years of probation. As with Holmes, restitution will be decided at a later date. The judge ordered Balwani to self-surrender on March 15, 2023.Former Theranos COO Ramesh "Sunny" Balwani and his legal team leave the Robert F. Peckham Federal Building on July 7, 2022 in San Jose, California.David Odisho/Getty ImagesSource: Business InsiderPaige Leskin and Maya Kosoff contributed to earlier versions of this story.Read the original article on Business Insider.....»»

Category: topSource: businessinsiderDec 7th, 2022

Transcript: Marcus Shaw

    The transcript from this week’s, MiB: Marcus Shaw, CEO of AltFinance, is below. You can stream and download our full conversation, including the podcast extras on iTunes, Spotify, Stitcher, Google, YouTube, and Bloomberg. All of our earlier podcasts on your favorite pod hosts can be found here. ~~~ ANNOUNCER: This is Masters in… Read More The post Transcript: Marcus Shaw appeared first on The Big Picture.     The transcript from this week’s, MiB: Marcus Shaw, CEO of AltFinance, is below. You can stream and download our full conversation, including the podcast extras on iTunes, Spotify, Stitcher, Google, YouTube, and Bloomberg. All of our earlier podcasts on your favorite pod hosts can be found here. ~~~ ANNOUNCER: This is Masters in Business with Barry Ritholtz on Bloomberg Radio. BARRY RITHOLTZ, HOST, MASTERS IN BUSINESS: This week on the podcast, I have another special guest. His name is Marcus Shaw. He has really a fascinating career and a focus these days. He really began as a traditional engineer/finance person working at IBM as a network engineer before he got his MBA at Duke. And from there, he did the usual research and investment banking gigs throughout a lot of Wall Street before the opportunity came to help entrepreneurs develop and grow their businesses in places like Alabama and Tennessee, which ultimately led him to participate in the founding of a new firm called AltFinance, which was created by really a group of, for lack of a better word, finance royalty. It’s Howard Marks of Oaktree Capital. It’s Tony Ressler of Ares, Marc Rowan of Apollo Global. These three gentlemen said we’re lacking the ability to tap into a very rich, diverse talent pool, including historically black colleges and universities. Venture capital, private equity, just were not recruiting for those spaces. And so they stood up a firm called AltFinance, whose main purpose was to help alternative asset managers tap into that rich pool of potential hires. Marcus Shaw works with them, and he’s the CEO of AltFinance. I found this to be really a fascinating conversation about how to access the most skilled partners and employees, what can be done to shake up a relatively staid industry that has lagged behind its peers in terms of recruiting and other things, and really how to help have a major impact in the world of finance. And I found this conversation to be fascinating and I think you will also. So with no further ado, my interview with Marcus Shaw. MARCUS SHAW, CEO & PRESIDENT, ALTFINANCE: Barry, thank you so much for inviting me. RITHOLTZ: I’m excited to chat with you. So let’s talk a little bit about Wall Street and diversity. Wall Street has been pretty bad at recruiting black talent. It’s been a stated objective for decades. Why is finance so bad at this? SHAW: Barry, I think that it’s a complex question that requires actually a complex solution and a multifaceted solution. I would say the most general issue here is that folks don’t have the networks and the access to careers in finance from across the country. Right? So if you grew up in New York, yeah, you’ll probably know some people that worked in the industry and you may have some relationships. You may go to school with somebody. Your parent may work there. And that’s whether you’re white or black. All right. But if you don’t, if you grew up in a market, where there’s not an investment bank, there’s nothing other than a branch bank for one of the multi-dimensional financials, then you’re not really going to have an understanding of what that career looks like at a young age. And so as you get ready to go to college, and you start thinking about what your career going to look like, it’s going to be primarily academic for you. And so I think that’s always a challenge that they’re not a ton of people that are in the seats, that are getting access to, in this case, black students from across the country. They’re giving them a look and this is what a career could look like for you. This is what an opportunity could look like for you. Here’s what the realm of possibilities is. And this primarily is how you get there, here’s a path to get there. That’s the biggest challenge. RITHOLTZ: So tell us about AltFinance, what is its mission? And why is this a better mousetrap than the way things have been done before? SHAW: So AltFinance is focused on building diversity in the alternative investment industry. RITHOLTZ: Alternatives being venture capital, private equity, anything else? SHAW: Private credit, real estate investing, hedge funds, everything kind of outside of traditional stock and bond investment, right, the things that are more private and market-driven often. And so our goal is to increase diversity in that space by working with partnerships at historically black colleges and universities, by providing students from HBCUs opportunities to have co-curricular programming, understanding, you know, exactly what you need to know to be successful in that role. Also to provide mentorship for students so that they’re not operating in a vacuum, so that when they have questions, there are people in the business, people that have experienced in the business that they can talk to. And also by working and partnering with schools to provide financial support to help increase capacity not only for students, but also for the institutions themselves. RITHOLTZ: So let’s talk a little bit about how AltFinance was initially funded and created. You have Howard Marks of Oaktree Capital, Marc Rowan of Apollo, Tony Ressler of Ares. These are like three heavy hitters at giant legendary firms. That’s a heady group to work with. What led them to say we need help accessing black talent, and we’re not getting it from anywhere else, we have to do it ourselves. SHAW: What I think all three gentlemen, you know, Howard, Marc, and Tony all recognize is that relationships help drive value. And so you got to have relationships with the schools and the places where there is a lot of black talent, and I think they saw HBCUs as an opportunity for that. I think what’s important, though, and what’s key is that we found ourselves at a very interesting point in time, in 2020, in the wake of George Floyd, in the middle of COVID. And so I think, everybody around the world, business leaders from across multiple industries were trying to think about how can we make the world a better place? How can we address racial equity in a way that’s specific to the businesses that we operate in? And I think that’s the key, right? This was not just about, you know, going out and being philanthropic, right, and making one time gifts. This was about how can you be strategic in building partnerships over the long term, that are going to have a systemic impact in the industry in which you operate. And that’s where I really think that the three firms led by, again, Howard, Tony, and Marc really found something that was special and something that was, you know, a better solution to a question that Wall Street has been dealing with for years. RITHOLTZ: So is it safe to say that Wall Street, in general, but alternatives like private equity and venture capital, were not recruiting at historically black colleges and universities? Was that void out there forever? SHAW: I think that it was not systemic, right? There was no systemic recruiting at HBCUs, in a way that was going to be sustainable, right? And I think that a lot of that was driven by needing to take some time and figure out how do we engage with these universities. We know we’ve got talent there. We’ve got density of talent, which is the important thing. And so I think giving us time to reflect on what had happened over the past few years was a really strong case for let’s go, let’s be direct and intentional. Let’s work with presidents of these universities. Let’s work with the deans, let’s work with the students to develop a strategy together, that’s going to rise the tide for everybody. RITHOLTZ: So I want to get into the details of what you guys actually do with students. But before I get there, you mentioned Tony, Howard and Marc, what led them to say, hey, let’s stand up some entity so we can set up an institution to correct just a recruiting shortfall we’ve had for years and years. Like that’s an unusual group of guys to get together and say “Let’s see if we can dent the universe a little bit.’ SHAW: Yeah. So I think there are two factors. Number one, and I think they both reflect strong leadership at the firms. Number one, you had, you know, somewhat of a groundswell from within the firm, certainly at leadership that said we need to figure out a way to do something. And I think as great leaders do, I think Howard and Tony and Marc were receptive to that. And also, it was perfect timing because they were thinking, how can we drive impact? How can we impact and affect change in our own way? And so it starts off with senior leaders at the firm and you know, these heads of industry working together to figure out, what can we do? Then you bring the relationships together. So Howard, Marc and Tony have known each other, but also many of their senior leaders have known each other as well. RITHOLTZ: Right, right. SHAW: And so the main thing that you have to do is say we want to take down any competitive barriers in which we operate during our standard business. And we recognize that what we’re trying to solve for is bigger than our individual company. It’s really about the industry. And if you can get to that point, which they did, very quickly, I mind you, then you can instantly start to put together something as powerful as AltFinance. And that happened, and it happened fairly quickly. But I think it took a lot of time and a lot of vulnerability, and a lot of transparency. And I think that’s really symbolic of what AltFinance represents. RITHOLTZ: So now let’s drill down a little bit and talk about what you exactly do with students. Do you guys provide coaching or mentorship? What do you do to help kids who probably aren’t all that familiar with what private credit is, and put them on a career path until alternative investments? SHAW: So there’s a framework that I use, I use it with entrepreneurs, I use it with talent anywhere I see it. First, you identify really good talent, right? Kids that have an interest in investing. Although they may not know the nuance of what investing asset class that they’re most interested in, or, you know, they’re young, they may not have the experience of understanding multi-cycles in the market, but they have an interest in investing. They have academic strength, right, some real intellectual rigor and horsepower. And so you look at kids that perform well, no matter what they do. You know, the kid can be a philosophy major, they can be a finance major, but they’re doing well in the pursuit that they’re following. And then we look for students that are coachable, right? RITHOLTZ: Coachable? SHAW: Coachable. Coachable is key. RITHOLTZ: Really? SHAW: It’s an apprentice model business. You know, there’s nobody that comes into this business, and comes in right out of college as a partner. Even if they’ve got all the resources in the world, nobody is going to come in as a partner. By and large, most people start this business as an analyst and they work with associates, and those associates working with VPs and principals, and managing directors and so forth. So you need people that are going to be willing to work through the apprenticeship model, that are willing to come in, you know, well compensated, a great network of people that they’re going to be around, but they’re still going to have to listen and be coached up in order to benefit the team in the company. And so we look for those things, people that have an interest in investing, people that have intellectual horsepower, and people that are coachable. RITHOLTZ: That’s really intriguing. So it’s not so much specific qualifications that are needed as qualities that will allow the students you select to succeed going forward? SHAW: Yeah. I think by and large, I mean, I would say that those qualities, you know, we recognize them through qualifications, right? So I look for people who have strong GPAs, and people that are taking some rigorous coursework, even if that coursework is not in finance. I look for people that have done extracurricular work, or you know, manage their own little portfolio, or have stock ideas or businesses ideas that they want to pitch. And then I look for people who also have references that say, “You know what, this young man, this young woman has been really coachable in the time that I’ve had them in school.” RITHOLTZ: So generally speaking, alternative assets, that’s a tough gig to get into regardless of where you go to school. Private equity, venture capital, hedge funds, real estate, down the whole list, not easy, how much harder is it to get into that space if you’re coming from an HBCU? SHAW: I think it can be difficult, and not because of anything that’s attributable to the student themselves. I think it can be difficult because no matter where you’re coming from, you need to know somebody to get into this business. And so the first key is how can you create networks that allow HBCU students to have mentors, to have advocates that are in the industry, that learn and know them well, know their strengths, know their weaknesses, know, you know, their ambition and their aspirations, and can speak to that and help guide them to certain careers inside of alternatives where they can be successful. RITHOLTZ: Really intriguing. Let’s talk a little bit about some of the work you’ve done, start with CEO of The Company Lab, what was CoLab’s mission and why Tennessee? SHAW: My wife and I decided to move to Tennessee back in 2016. She joined a practice down there and we had family in Tennessee, and it was really a unique opportunity to move around. We’ve moved around a bunch and have enjoyed all the different places that we lived in the country. Chattanooga is a fascinating city, really steeped in some rich history, but also a city that faces some challenges as they grow from a very small city to a more significant city in the U.S. economy. When I moved down there, I was still working with MLT, and then an opportunity came up to take a pretty significant role within the community as a CEO of The Company Lab. The Company Lab was the entrepreneurship and economic development center for Chattanooga and the surrounding areas, which include North Georgia, North Alabama, and Southeast Tennessee. It was incredible to really focus on local opportunities for entrepreneurs, for investors. for economic development, and really see how the fabric of a city with, you know, about a couple of hundred thousand people can develop, when you have people that are really dedicated to fostering that growth. RITHOLTZ: Was this like a private public partnership? Tell us a little bit about the structure of that. SHAW: It was a private public partnership. It was set up as a nonprofit that had some funding coming from the state, some funding coming from foundations, and then some funding coming from corporate entities that also found economic development in the region very important RITHOLTZ: What’s some of the economic sectors within that area? What is Chattanooga known for? SHAW: So Chattanooga is known for a couple of things, right? Key brands, number one, Coca-Cola Bottling is the company that really helped to jumpstart the city. And so Jack Lupton was kind of the patriarch of that company, and sold that company back to Coca-Cola in the mid-90s. RITHOLTZ: They were two separate companies for a while. SHAW: That’s right. So, yes, there were a number of bottling companies that would bottle Coca-Cola product and distribute it throughout the country or throughout the region. And the one in Chattanooga, Coca-Cola Bottling was one of the larger ones in the mid-century. Again, it was sold back to Coca-Cola as they consolidated those businesses, and left a pretty strong economic footprint in Chattanooga. Chattanooga was also the home of Moon Pie and Little Debbie, right? And a number of consumer products that are very familiar brands that we know about, but did not know that they were from Chattanooga. And so what I saw in Chattanooga was a rich history around entrepreneurship that necessarily hadn’t found its way into the modern day, right? We didn’t see a lot of great companies coming out of Chattanooga in the late ‘90s during the tech bubble, and so forth. RITHOLTZ: So what did you accomplish when you were there? Do you feel like you moved the needle at all? SHAW: Well, we moved the needle tremendously. You know, there were some companies that were there when I took the seat, companies like Bellhop, that’s a tremendous company and kind of operates in the Uber of moving, right. So you have fantastic moving company and a fantastic culture. There was a company FreightWaves that has done fantastic work. People kind of equate it to the Bloomberg of trucking. And so they’ve got a — RITHOLTZ: FreightWaves? SHAW: FreightWaves. FreightWaves. RITHOLTZ: W-A-V-E-S? SHAW: That’s correct. And Craig Fuller who’s the founder and CEO down there was a good friend, but also a really strong business person who’s done some great work. We brought Steve Case in Rise of the Rest to Chattanooga. RITHOLTZ: Sure. SHAW: And FreightWaves was actually the investment that they made in Chattanooga, and has done great work. The company has grown. They’ve employed hundreds of people with meaningful salaries. And that’s what it takes to move the needle in a place like Chattanooga, and there are hundreds of cities like that around the country. RITHOLTZ: So how do you go from Tennessee to Alabama at the Montgomery TechLab? SHAW: So as I was leaving CoLab, in Tennessee, I saw what was going on in Montgomery, and I saw that Montgomery had great leadership. The mayor down there, Steven Reed, has done a fantastic job in Montgomery. I also saw that they had some really unique assets. They’ve got a fantastic Air Force installation down there. They’ve got the state capitol there in Montgomery. They got a really diverse population. And so what I really did was take the thesis that we were working with in Chattanooga, and adjust it so that it applied to Montgomery. And so in a couple of years down there, we’ve been able to bring some really incredible companies to Montgomery, to see the type of value that they have there. But we’ve also, in this most recent cohort, and the team down has done an incredible job, helped grow companies that are there in Montgomery, focusing on tech solutions and tech services, to help them expand and recognize assets even outside of the region. RITHOLTZ: So you mentioned tech, I tend to think of the West Coast as the, you know, center of tech in the U.S. The Northeast is the center of finance. The Southeast, how should we think about that in terms of the business sectors that they should be known for? SHAW: So I think there are a couple of things. Number one, manufacturing has been strong in the Southeast for a number of years. RITHOLTZ: A lot of car companies really, right? SHAW: A lot of car companies. There’s a lot of pro-business environment for companies with big labor forces in the Southeast. You’re able to operate at a more efficient standard of living in terms of cost. And so you see a lot of car manufacturers operating down there. Also, transportation and logistics, Chattanooga was probably one of the biggest hubs for transportation logistics in the country. Anything that’s coming through the Southeast via truck is coming through either 81 or 75 or 24. All of that comes through Chattanooga. And so that was something that we saw. You’ve got companies like U.S. Xpress and Covenant that operate in Chattanooga. RITHOLTZ: Didn’t FedEx or UPS have a big logistics center? SHAW: So FedEx is out in Memphis, Tennessee, so on the other side of the state. But those trucks, again, will all come through Chattanooga. And so when you think about, you know, the south and you think about industries that are moving, it continues to be manufacturing and logistics. Also, healthcare is really popping up. Nashville and Atlanta are two very large healthcare hubs. Some of that is due, unfortunately, to demand, right, where you have health outcomes that are probably a little more severe in some of the Southeastern states in the United States. And so you need strong healthcare to meet the needs of the population. RITHOLTZ: It’s interesting we’re talking about different parts of the country. A lot of the bigger firms want to see the end of remote work or hybrid work. But I would imagine that that creates opportunities for parts of the country like Chattanooga, and Nashville, and Montgomery, where there are a lot of big companies that may not be located there, but they want to tap the pool of talent that’s there. SHAW: So we’ve seen that, and talking with leaders in a number of cities throughout the south, and even throughout other areas in the middle of the country that have not traditionally had the type of talent there, or the draw to those cities. You definitely saw a surge of people, I would say, during the COVID period, that were moving to cities where there was a lower cost of living, but a strong quality of living, and they could work remote. And so I think there’s been a benefit to those cities, and that you’re getting people that are moving. You know, Nashville had a ton of people that were moving to Nashville primarily from California, and that really strengthened the work or the labor force in Nashville. What you do see on the other side of the coin, though, is that for companies that are there locally, it can be a detriment because you have people that are there in the city and may take jobs outside of the region instead of taking jobs there in the region. And so there’s a delicate balance, right, to the impact, particularly for small to mid-size markets, where you have a labor force that’s needed in the market, that’s finding opportunities outside of the market, even if they continue to live. RITHOLTZ: Let’s spend a little time going over some of your history. Your family is from Mississippi, but you grew up a little bit of a military brat? Tell us about those experiences. SHAW: Yes. So my dad is actually from Mississippi. My mom was from North Carolina. My dad was a naval officer who retired shortly before I was born. So I spent most of my time growing up in Maryland, right outside of D.C. RITHOLTZ: So you didn’t do the whole army brat travel around the country? SHAW: I didn’t do that. But I did hang out on military bases a lot. So all my friends would change every three years when they PCS, right. So I had kind of the opposite side of the travel, which is being the friend that was always left behind. RITHOLTZ: Right. That’s really intriguing. What did your dad retire from doing? What was his — SHAW: So my dad had two careers in his life. He grew up in Mississippi. He’s picking cotton, believe it or not, when he was 7 years old. He was born in 1929. RITHOLTZ: Seven? SHAW: 7 years old. Right. RITHOLTZ: Wow. SHAW: We talk about skipping generations. He went into the Navy in 1945, and spent 27 years in the Navy. He retired and went to work at the Library of Congress as personnel. He was able to get his undergrad, master’s, PhD all through the GI Bill while he was in the Navy. RITHOLTZ: Wow. SHAW: But I always say my father is a real hero of mine because he truly did skip three generations in one lifetime. RITHOLTZ: Wow. That’s really impressive. Was mom working? Was she a homemaker? SHAW: My mother was a 50-year school teacher and taught public school in D.C. for 50 years — RITHOLTZ: 50. Wow. SHAW: — and really was an inspiration for the way I think about learning and understanding the value of education. RITHOLTZ: So let’s talk a little bit about education. You went to Sidwell Friends School, that’s some rarefied company, isn’t it? SHAW: There’s some good people that have gone there. RITHOLTZ: Yeah. Who did you go to school with? Any famous names that you know of? SHAW: Marcus Shaw is one. But, no, I had great, great folks in my class. Baratunde Thurston, who you may have heard of, author and producer that spent time with The Daily Show; Jon Bernthal who’s a great actor; Tommy Kail who was the director of Hamilton and some other big plays. RITHOLTZ: Wow. SHAW: But you know, everybody in our class was phenomenal. Also, folks like Chelsea Clinton, and later, the Obama girls went to Sidwell. So some rarefied air indeed, but a great group of students and a great group of friends. RITHOLTZ: So you go from there to get a mathematics degree from Morehouse College, then onto Georgia Tech for an electrical engineering degree, with little football mixed in. Tell us a little bit about your academic career in college. SHAW: So when I went to Morehouse, I was excited. I went down there with a few friends. It was a great mix to be able to go to a school, like Sidwell, and then go to an HBCU as esteemed as Morehouse was. It was really a great opportunity for me to have a bunch of different experiences. My story around playing football is probably my great interview story. I was playing cards with a bunch of guys right at the beginning of the school year, and made a bet that I could kick a 50-yard field goal. So we go out on the field, we jumped the fence, I lined up, take about 20 steps back, kick a field goal from 50 yards. One of the coaches comes out and yells at us to get off the field. We’re trespassing. As we’re leaving, he tells me to come out to the walk-on tryouts at the end of the week. RITHOLTZ: How close did you come to a 50-yard field goal? SHAW: Oh, I knocked it down. RITHOLTZ: No kidding. SHAW: I made it, man. He didn’t want me to come out because I missed it. He wanted me to come out because I made it. And you know, I went on to play four years in Morehouse and had some strong accolades there. But really, even that experience was about building great friends that I played football with. And many of those gentlemen have gone on to do incredible things as well. RITHOLTZ: Why is it not surprising that a math nerd is also a placekicker? It seems to be like the field goal seems to be one of the most mathematical parts of football. SHAW: Well, it’s pure geometry. RITHOLTZ: Right. SHAW: So 1.3 seconds from the snapper to putting the ball down and getting the ball off the ground, the angle that has got to come up, you know, is pretty significant in terms of your probability of making it. So I looked at it as an exercise in physics, geometry, you know, a little bit of chemistry, depending on the texture of the football. So I thought I was a natural. RITHOLTZ: That’s really intriguing. And then you go on, get your master’s at Duke School of Business. What led you in that direction, given the mathematics and electrical engineering undergraduate? SHAW: So I went to IBM after completing my undergrad degree at Georgia Tech in electrical engineering. I had a great time there, learned a lot, but really wanted to understand the way that we were selling business, right, understanding more about the business of IBM, and how we thought about the products and services that I was delivering as an engineer. Not to mention one of my, you know, very good friends that played football with me in Morehouse, was a year ahead of me in business school, he said, “You’re pretty smart, you should check out business school.” And fortunately enough, I had a great school in Duke that was right there in Durham. My wife was in med school at UNC. And I didn’t have to move to go to a great business school, which was really refreshing. And it was a great experience, and I learned a lot about business there and kicked off a new career. RITHOLTZ: From there, you ended up going into a decade of equity research and investment banking at shops like Bank of America, Piedmont, others. What led to that aspect of finance? SHAW: So I always tell folks this is one of the great turning points in my life. When I went to business school, I was pretty confident that I was going to come out of business school and go back to IBM. I was going to stay an engineer, wanted to learn more about marketing and you know, some operations around technology. There was a point right before the start of my first year in business school, so this is 2003, I had an opportunity to go to a camp, two-day camp at Goldman, that was focused on providing insights in investment careers for people that did not have an investment background. And you know, they fly you up, you’re a smart kid, put you up in a nice hotel. And I met a woman who covered enterprise software at Goldman, and she gave me really great insight into how I could leverage the industry knowledge that I had developed at IBM. And so, really, it was one person on an off-conversation, you know, down on Broad Street, 20-plus years ago, that led to my career. She said, “Equity research is a great place where if you know a lot about the business, and you learn a lot about finance, you can be impactful. You can earn a good living. You can really understand the markets and meet great people.” RITHOLTZ: As opposed to the opposite which is knowing a lot about finance, and then having to learn a whole industry from the outside, it’s a very different perspective than starting with the industry knowledge from the inside. SHAW: That’s right. And that perspective is something that I think we’ve got to learn to embrace more because, you know, finance is challenging, but it’s not difficult, right? It requires putting in work and getting reps in order to start to understand patterns and be able to anticipate things that you will see in the market, or things that you’ll see at a company. But really understanding the core of industry is what makes a master of business, right? I mean, that’s how you really start to hone the skills that you need in order to make true alpha out in the market as an investor. RITHOLTZ: So tell us what you did it at shops like Bank of America, what was your focus? SHAW: So I covered telecom services at Bank of America. During my time at IBM, I worked on several telecom networking projects and really understood the industry, things like spectrum and things like wireless that were coming of age at that time, I understood pretty deeply. And you know, through my understanding of finance, I was able to say, these are businesses that I think will do well. these are businesses that are positioned to do well. And once the market understands that, the stocks will perform. I had great mentors at Bank of America, a great team that I worked with, and really set me up for a great start in finance. RITHOLTZ: So you have a little bit of a health scare when you’re relatively young, and it changes your career trajectory. Tell us what led you to stepping off of the merry-go-round? SHAW: Yeah. Barry, it’s an incredible story and one that I think also defines a lot of where my life has led. So you know, I was at a firm in D.C. and covering tech media telecom, a bunch of regulated industries as well, and was having some chest pain. And a bunch of traders had, you know, what we call walking pneumonia, but it takes everything to get a trader off the desk, right? I mean, the whole desk will get pneumonia before they leave. And I was pretty sure that’s what I had and was coughing for a few days, and had some pain in my chest, go to the hospital. They take an X-ray. They see that I’ve got some swelling and a little bit of cloudiness there in my lungs, and they gave me a Z-Pak, an antibiotic. They think that I might have had pneumonia. My wife who’s a physician, as I shared with you before, you know, comes to the hospital, to the emergency room. She asked me what they said, I said, you know, as an equity research guy, I think I know it all, “I’ve gotten pneumonia. You know, they saw it on the X-ray.” What I didn’t– RITHOLTZ: It’s like, “Let me see those films.” SHAW: She’s like, “Let me see what’s going on.” Exactly. RITHOLTZ: She didn’t buy it? SHAW: Well, she didn’t buy it because she’s a doctor and she’s very good at her job. Like, I say all the time. I’ve got a great wife, but I got the best doctor that anybody could have in their house. I had some leg pain earlier in the week. RITHOLTZ: Left side? SHAW: Yeah, left side. RITHOLTZ: Ooh. SHAW: So we know where this is going, right, Barry? RITHOLTZ: All right. Yeah, you can just ignore that. That will sort itself out. SHAW: I thought it was a charley horse. RITHOLTZ: Really? SHAW: I played a little basketball with buddies. This was right at the end of a Thanksgiving holiday. And I got a group of buddies, lifelong friends, we always play basketball together. And I thought it was a charley horse. Pain in the leg went away. A couple of days later, I’m having this pain in my chest and I take myself to the hospital. She goes, “Did you tell them about your leg?” And I said, “No.” She goes into the head of the emergency room’s office. RITHOLTZ: Really? SHAW: The guy comes back out and he says, “How come you didn’t tell me about your leg?” I said, “Well, my leg doesn’t hurt anymore. It’s my chest. I got pneumonia. That’s what X-ray said.” This is where equity research guys talk themselves into a hole. They think they know more than they do. RITHOLTZ: Right. SHAW: I know a lot about telecom. I know nothing about healthcare. All right. So the guy comes out and he says, “Well, we got to give you what we call a D-dimer.” Right. There’s a test for blood clots essentially. RITHOLTZ: Right. SHAW: They do the tests. I am at this point, the second sickest person, highest priority in the emergency room. RITHOLTZ: Wow. SHAW: They rolled me in. They gave me an MRI. They see the blood clots in my lungs. They see some remnants in my leg. I’m immediately, you know, brought into the hospital and I’m there for several days. They gave me blood thinner. They want to make sure that these clots don’t — RITHOLTZ: So no bypass or anything crazy like that? SHAW: No, no, no, no, no. So what I had was a blood clot, right? So I did not have a heart attack. I’m in the stroke center there at the hospital in D.C. And for me, it was really a point where you start thinking about your life in a different way. RITHOLTZ: It had to be terrifying when your wife comes in and the head of the ER says, “Stat. Let’s get this guy taken care of immediately.” SHAW: It is, but not as scary until you realize what’s really happening. And that, you know, there’s things that they call the widow-makers, which are these bilateral blood clots that you get across the aortic valve. And I mean, you just go away. RITHOLTZ: You’re done. Right. SHAW: You’re done. Right? As somebody that kind of steeped in mathematics, probabilities, investment, you’re always thinking about the future. And you know, my great story from that is that I actually upgraded a stock Pandora Media from the ICU in the hospital. RITHOLTZ: I bet they loved that. SHAW: Yeah. To which my wife responded, you know, “If you die writing a research report, I’ll kill you.” Right. So this is where you start putting it together, you put a little bit of life together, and you start thinking like an investor, and you start investing in yourself and thinking about, you know, how are you going to measure the return in your life? And for me, I’ve done well as an analyst. You know, we did well. And I said I really I want to find ways that I can impact and help others with the years that I have left because it could have gone away right then in there. RITHOLTZ: So is that what led to Management Leadership for Tomorrow, and then AltFinance? Tell us about what took place when you got out of the hospital? SHAW: Yeah. So got out of the hospital, stuck around for a few more months at the firm that I was working. And then decided to do some other things, and that included doing some work with small- to medium-sized businesses, providing some outsourced CFO type of service, to really understand how some of these small businesses worked. An organization that I looked at doing some work with was Management Leadership for Tomorrow. And John Rice and the team at MLT do a great job. They have absolutely moved the needle and changed the trajectory for thousands of Black, Latino and Native American students over 20-plus years. I knew John a little bit and knew about the work that he had done. I had written recommendations for mentees of mine into that program. And John asked me to come out and you know, “Can you help raise some money, right, running business development?” And for me, that was a step away from the industry. And what I recognized is I got tremendous fulfillment out of seeing young people that were, you know, 10, 20 years younger than myself, but helping them get to the next level, helping give them the opportunities that that woman gave me from Goldman, when she said, “Here’s the path you should think about taking.” RITHOLTZ: Quite interesting. (COMMERCIAL BREAK) RITHOLTZ: I’m Barry Ritholtz. You’re listening to Masters in Business on Bloomberg Radio. We’re talking to Marcus Shaw. He is the CEO of AltFinance, a firm which seeks to increase diversity across alternative asset management firms. So we’ve been talking earlier about the lack of recruiting and the lack of diversity, historically, on Wall Street. But let’s talk about the other side. You often speak to groups of smart college kids, and you ask them, hey, what do you guys know about private equity, or credit, or venture capital? What sort of answer do you get when you ask those college students those questions? SHAW: So the most interesting thing that I’ve seen in assessing college students and talking to them is that students generally have very little knowledge of the companies that are operating in the private equity, private credit markets, real estate. They know some of the venture capital firms because I think venture capital has done a great job of a PR over the past 10 years or so. I mean, everybody wants to be a venture capitalist and an entrepreneur. I always attribute that to a low interest rate environment where — RITHOLTZ: Oh, no, go back to the 1990s when venture capitalists were rock stars also. SHAW: That’s right. That’s right. Well, also, though, you know, a period there where you had the Fed being a little accommodative, right? I think that by nature and by design, many of the firms that operate in private equity and private credit space don’t want to be known. But our students know many of the holding companies, right. And that’s what’s really interesting, that they know the publicly-traded companies, they know the private companies, but they don’t know the holding companies for the private companies. RITHOLTZ: You use the example, and I think it’s fascinating, Rihanna partnered with a private equity firm for her fashion line. The students know who Rihanna is and they know how wildly successful she’s become, but they don’t know who the financers are. SHAW: That’s right. That’s right. RITHOLTZ: And how do you get them to look behind the curtain and/or under the hood and see that capitalist is what’s driving the business? SHAW: I think the key to that, and we check for this when we’re interviewing students for our program, is intellectual curiosity, right? That’s the key to being an investor. Are you always thinking about peeling back another layer to the onion? You go in a store; you see a great product. Hmm, where is that product made? Who’s the company that owns that? Is there’s several different pieces to the product? Where are they getting the components from? Where are they sourcing them from? Who owns that company? Who finances those companies? That’s the way we’re teaching students to think because that brings about the type of intellectual curiosity that you need to have when ultimately, you want to put some capital behind a company that you really like. RITHOLTZ: So let’s go back to first principles. Why are companies interested in diversity? What’s in it for them? SHAW: So I think there are a number of reasons why companies are and should be interested in diversity. We have hundred million students out here, coming through, you know, K through 12, and university system that are operating at a higher level than we were 20 years ago. Students are very smart, independent of their color, their background, their religion, their gender orientation, right? What we know is that students are being educated at tremendous levels today. They have so much more access, that their intellectual curiosity is going to be really fueled by a lot more information that’s delivered in a more equitable way. If I’m hiring for talent, I want access to all of that. I want to know the brightest kid from every corner of the country, boy, girl, gay, straight, black, white, it doesn’t matter. I want to know that student because that student can help me. That student can help me build and invest, and find opportunities and generate alpha, and bring more clients into my business. And so if I’m a senior leader at a company, I think that’s the business operative, right? I’ve got to have the brightest talent, the talent that’s most differentiated and intelligent, and also helpful. I think the social part of this is that, you know, a lot of these dollars are public dollars, that companies are managing. My mother, again, a 50-year school teacher who put money into her retirement for 50 years. It would benefit her, and it would benefit the other teachers and firefighters and police officers that represent diverse communities, to have people who are investing their money look like them as well, RITHOLTZ: Really interesting. So this is more than just a checkbox on any list. Companies are actually looking to expand their diversity and inclusion practices because they see a genuine benefit to both their decision-making process and their businesses. SHAW: I think that’s the obvious answer. And that’s why with AltFinance, you know, this is a long-term plan. We’ve got a 10-year commitment from our three initial partner firms. And so this is not about checking the box; this is about changing the paradigm for recruiting talent in this industry. RITHOLTZ: So this industry has been notoriously laggard when it comes to diversity. But there are lots of other industries, technology has been accused of having a diversity issue. Medicine, law, pretty much wherever you look, United States has its own history, with some of its dark pockets. What other sectors could benefit from an organization like AltFinance, or what else can we focus on? SHAW: Yeah. I think there are a number of sectors that could benefit from this strategy, even sectors like tech that have already developed some strategies. I think, again, we’re focused around education, exposure and experience, the three elements that are going in to preparing students for careers. This is not just about scholarships, right? You give a student a scholarship, but then you don’t really give them access to the people at your firm that are going to help that student not only get a job at that firm, but feel a sense of belonging, right, once they get to that firm, so that they maximize their individual output. That’s what you’re trying to go for. Right? I’ll tell you a story about a student. So we have a student in our program. And when you talk about counseling and coaching, it was a phenomenal story. A student, very bright student who had the ability to graduate in three years, and worked last summer at a fairly reputable consulting company. And I asked the student, I said, “Why are you in a hurry to graduate? You students got a pretty good scholarship package.” Student comes from a background where, you know, he’s having to support family still at home. I mean, you know, a tough situation, and he wanted to get out in the workplace where he can earn. I said, “Trust me, if you stay for your full four years, you’ll have the opportunity through this program, to get access to a career in alternatives. You had a great opportunity last summer. You’ll come out. You could make 2x, even 3x if you stay and pursue this opportunity in alternatives.” So the young man stayed, had multiple opportunities, selected one. But here’s the real power of the network. As he’s making his decision to which role he’s going to take and you know, at one of three mega funds, he calls up his mentor who is not at one of the firms that he has an offer from. And he says, “Well, what do you think I should do?” In the course of that conversation, not only does he get guidance from the mentor, the mentor connects him with another gentleman who used to work at one of the firms, in the same group that he was going to. Now, he has a decision that he’s made, that’s been informed by two people that he did not know a year ago. That’s the dinner table. RITHOLTZ: And we will take those conversations for granted if specially someone grown up in a New York area, where you know people who work in finance or people’s parents were in finance, that network just doesn’t develop elsewhere without focused exposure to it. SHAW: That’s right. RITHOLTZ: That’s really intriguing. So you’re at Bank of America a decade ago. You had some important teams you worked with, and you led some groups. How do you see Wall Street having changed over the past 10 or 20 years? Were the signs on the road that things were getting better? Were they ripe for moving in the right direction? Or is Wall Street just calcified and needed to really be shaken up? SHAW: Well, Barry, I think that question really highlights something that’s amazing to me. Number one, that I’ve been in this business, you know, a long time. RITHOLTZ: It goes by quick, doesn’t it? SHAW: It goes by very fast. And number two, how much things change, you know, in a fairly short amount of time. You know, when I started my career in finance, I was the only black person in my group, in my division. Okay. Another young woman came shortly after. We had a great relationship. In fact, she’s been a lifelong friend. And I, you know, was a mentor to her. And — RITHOLTZ: Was that something that was very consistent? You were the only black guy working at the other shops you worked at, or at least the only person in the department? SHAW: Well, for a couple of firms. I also did work at a minority-owned firm down in North Carolina, and it was refreshing. I mean, actually, you know, some of the brightest people that I ever worked with, and much of my investment philosophy and the thesis, the way I think about investing was developed there, amongst an incredibly diverse group of investors who had, you know, tremendous experience and success. RITHOLTZ: Really intriguing. So given that you were at some big firms early 2010s, you know, what was it that led Wall Street to finally being ripe to accept changes? SHAW: I think there is an inevitable pressure from society that helps drive change. And I think Wall Street, while we talk about it, in this compartmentalized concept of its Wall Street. It’s in New York. It’s, you know, the bull down on Wall Street, right? And it’s the movies that we see. In reality, the funds that Wall Street is managing, the capital that it’s managing is coming from all over the country. RITHOLTZ: Right. SHAW: It’s coming from people that look like me. It’s coming from people that look like you. It’s coming from people that look like our parents and our children. So at the end of the day, and I think we saw this in 2008, I think we saw it again during COVID, that at the end of the day, these companies are accountable to the people, right, and to the people that are their investors, their LPs, and entities that their LPs represent, and their clients. And so I think that what we’ve evolved into is a more human Wall Street that is more inclusive by nature. And I do believe that what we’re seeing now, right, we will continue to see because we’ll have people that come through AltFinance, but also people more senior that are at the table and helping make decisions on where and how we invest in people, and where and how we invest in companies. RITHOLTZ: So that leads me to a pretty straightforward question, which is, first, how do you measure your own success with AltFinance? And second, how to people like Oaktree, Apollo, and Ares, how did they ask you to track your progress? What metrics do they look at, to say, hey, we’re getting our money’s worth for standing up this company and giving them a decade long horizon? SHAW: So I’ll address the latter first, right. Number one, so I came in in September. We started our first cohort of our fellowship in January. We now have the second cohort. I’ve got 75 students from HBCUs that are now building relationships, getting education, getting exposure, and ultimately getting experience to the alternative investment industry. That is fascinating. We’ve got students in our program that have their first full time offer with alternative investment firms, that will graduate in 2023, in May. So we’re already in a few months really hitting the cover off the ball. That’s the quantitative element, right? Those are the KPIs up on the dashboard that are saying, you know, how many students are you getting to exposure to these jobs? How many students are getting these jobs? What I also measure and this is through the conversation with students, how many students are building confidence, skills, and relationships that will help improve their wealth and economic mobility as they grow? How many students are having a conversation around the learning session that we do on interest rates, and then calling mom or dad at home and saying, “You know what, you know, what’s the interest rate on your credit card? Did you refi your house? How should I think about my student loans?” Right. They are really taking an active position in the way that they think about their personal finance, but also the way they think about investing. And I hear those conversations and have those conversations with students almost on a daily basis, and that’s what fulfills me and lets me know we’re moving in the right direction. When I look down the road in 10 years, I believe that I will have hundreds of students that are actively working in alternative investments, but I’ll have thousands that are knowledgeable and have relationships with people in this business, and are better off for it. RITHOLTZ: So we’ve been talking a lot about alt investments. Are there parallel entities to AltFinance for traditional asset management, investing banking, stocks, bonds, IPOs, et cetera? It seems like there should be something similar to what you’re doing for that space as well, which arguably, is even bigger than AltFinance. SHAW: So I think there are some organizations that have, you know, been active and providing similar opportunities for students for traditional banking, right. I mean, when you think about what Reginald Lewis did, you know, almost 30 years ago, and breaking grounds for blacks in investment banking. I think that we’re doing some of that today in the alternative space. Remember, we had our first group of fellows. We had 33 fellows in our first cohort. RITHOLTZ: What year was that? SHAW: So this is January of 2022. This is just, you know, a few months ago, right? And I asked the students, all right, how many of you know Morgan Stanley, Goldman, Citigroup? Everybody raises their hand. They all know it. They see the commercials. They get the commercials on the Internet. I asked, how many of you know Ares, Apollo, or Oaktree? One student, so roughly 3%. These students are brilliant, all high performers, all strong academic performers. I mean, they will not fail to get a job. They could get a job doing anything. But they did not have the awareness of how the pathway to enter one of the most rewarding careers in investing. RITHOLTZ: Really? SHAW: And that’s a key. And so when I look at other industries, and what other organizations are doing, we are squarely focused on helping move the needle in the alternative investment space, places where people can help do deals, be long-term owners. It’s not about, you know, the transactional element of investment banking, right? Be an owner, a direct owner of a brand that you know, but you never knew who the holding company was. I have 75 students now that can answer that question of what’s the pathway. RITHOLTZ: How much larger can you expand this to be? SHAW: So Barry, we will expand the fellowship program ultimately to be round 100 or 120 students, and you know, each year, about 40 or so in each class. We are also partnering with the Wharton School of University of Pennsylvania to develop an institute, the Wharton AltFinance Institute, which will be an online community and platform providing, again, curriculum and content and community, as well as resources to help students at any HBCU gain access to again education, exposure, and opportunities for experience in the space. And so through the institute, we’ll be able to scale some of the best parts of our fellowship, which is a real high touch part of our programming. But we will scale that to the students that are at HBCUs that we don’t partner with directly. RITHOLTZ: Really, really quite fascinating. I know I only have you for a couple of minutes more. So before I let you go, I want to ask the standard questions that I ask all of my guests, starting with, what have you been streaming these days? What’s been keeping you entertained post lockdown? SHAW: Yeah. So Barry, I would say I tend to read a lot and follow a lot obviously in news channels on finance. On podcasts, I mean, I love Howard Marks, The Memo, and I read his memos that he puts out. But I love what he’s doing in the podcast format that he’s developed. But I listened to a lot of sports. I’m a huge Jalen & Jacoby fan. I love what those guys are doing in terms of sports and entertainment. And so, you know, probably not as heavy as some of the other answers you get. But I love sports talk radio. RITHOLTZ: That’s interesting. Tell us about some of your early mentors who helped shape your career. SHAW: So, you know, a couple of the mentors that I had, there was a woman named Stacy Gorin who hired me actually at IBM. And it’s amazing to think this is over 20 years ago. Stacy was a long-term executive at IBM and has now moved to a consulting firm. But what she really helped me focus on early in my career was continuous improvement, right. You think about it as an engineer a lot, right, kind of the Kaizen principle, right, that Toyota use. But personal improvement of yourself, right, how do you continue to develop as a person? If you’re strong technically, how do you develop into a person that people feel comfortable managing others, and feel comfortable being managed by. And so as I developed into an executive and then CEO, I always reflect on those lessons that she gave me early on, about being vulnerable, and being coachable, even being coached up, right. So having somebody that reports to you have the ability to coach you up on things where you can be more helpful for your organization. RITHOLTZ: You mentioned books and you like to do a lot of reading, tell us what some of your favorites are and what are you reading right now. SHAW: Yeah. So you know, a book that I go to often and I reread this probably once every couple of years is Peter Bernstein’s “Against the Gods.” RITHOLTZ: So good. SHAW: It’s fascinating to think about this concept of risk, and how it’s affected us since the very beginning of time, right. And then, really how we have taken risk from something that was deified, right, kind of this religious concept, and turned it into an economic tool that we can arbitrage for personal gain. Unbelievable, well written, I love the historical context and bringing into the future. And so that’s one that I go to often. I’ll tell you a book that I want to pick up and the title here is John Mack’s new book. And I thought it’s interesting because, you know, John is somebody that I don’t know, personally, but I’ve always respected kind of the way that he organized and ran businesses. And you know, it’s of note that he’s dealing — you know, I think has talked publicly about the aging process that he is going through himself. And I found that particularly endearing because it’s something that I’ve dealt within my family. And to recognize that, you know, in this business, we’re still human and we’re not excluded from the human process. And so that’s the book, John Mack’s new book is one that I certainly want to pick up. RITHOLTZ: “Up Close and All In: Life Lessons from a Wall Street Warrior” is that it? SHAW: That is it. That is it. RITHOLTZ: Yeah. That’s a hell of a title. SHAW: Hell of a guy. RITHOLTZ: This is kind of a funny question because I ask this to everybody, but essentially, I’m asking you a question which is what AltFinance does, but I’ll ask it anyway. What advice do you give to a recent college grad who was interested in the career in either investments or alternative finance? SHAW: So there are two things that I tell all of our students. Number one is bigger picture and probably pretty simple, you’ve got to have intellectual curiosity. You can never run out of questions. I mean, you run incredible podcasts. You can never run out of questions. You’ve always got to have something that you’re thinking about in terms of what’s the next layer. How can I think about in a different perspective? How can I put myself in somebody else’s shoes and think about it? And how does that change the value of what I’m looking at? Right? I think that’s critical to being successful as an investor. Number two is something that somebody shared with me and that’s actually John Rice who runs MLT and is a partner and a great friend, and really one of the great leaders in the D&I space. When you’re young and you’re bright, you’ve got to take risk early in your career. And in fact, not taking risk is actually the riskiest thing you can do. It’s a little bit of a parable, right? But — RITHOLTZ: When you’re young, you can recover from failure. You don’t have that same luxury when you’re older. SHAW: It’s so hard to appreciate that when you’re, you know, 20 or 21. When you’re — RITHOLTZ: You’re afraid of failure. SHAW: When you’re afraid of failure, when you should actually be seeking failure. Right? You should not be doing anything when you’re 22 or 20 or 21 that you can’t fail it. RITHOLTZ: Right. Playing it safe is risky. SHAW: It is risky. RITHOLTZ: That’s really interesting. And our final question, what do you know about the world of investing and AltFinance today you wish you knew 20 or so years ago when you were really exploring the field in its earliest days? SHAW: So the biggest thing I would say procedurally that I see in the investment hiring cycle is that you got to be ready for the gig before you get it, which means that the recruiting process for alternative investment, even if you’re going to investment banking as an analyst, it may start before you actually start that job. There may be people that are reaching out to you, trying to assess your interest, and what you’re going to do after banking. And that was, you know, I say, one of the secrets of the industry that, you know, I was well into my career before I knew that’s how people were getting recruited into the industry. And so you got to have your ear to the ground, right? You got to know who’s who, where the players are, who you should be expecting emails and calls from. And when you get those emails and calls, you got to be ready for it. RITHOLTZ: Really interesting answer. We have been speaking to Marcus Shaw, CEO of AltFinance. If you enjoy this conversation, well, be sure and check out any of the previous 400 or so we’ve done over the past eight and a half years. You can find those at iTunes, Spotify, YouTube, wherever you get your podcasts from. We love your comments, feedback and suggestions. Write to us at mibpodcast@bloomberg.net. Sign up for my daily reading list at ritholtz.com. Follow me on Twitter @ritholtz. I would be remiss if I did not thank the crack team that helps put this conversation together each week. Justin Milner is my audio engineer. Atika Valbrun is our project manager. Paris Wald is my producer. Sean Russo is my researcher. I’m Barry Ritholtz. You’ve been listening to Masters in Business on Bloomberg Radio. END ~~~   The post Transcript: Marcus Shaw appeared first on The Big Picture......»»

Category: blogSource: TheBigPictureNov 22nd, 2022

The rise and fall of Elizabeth Holmes, the former Theranos CEO found guilty of wire fraud and conspiracy, who was sentenced to more than 11 years in prison

Elizabeth Holmes was sentenced to 11.25 years in prison with 3 years of supervised release on Friday after being found guilty of fraud and conspiracy. Elizabeth Holmes leaves after a hearing at a federal court in San Jose, California, on July 17, 2019.Reuters/Stephen Lam Elizabeth Holmes dropped out of Stanford at 19 to start Theranos and grew its value to $9 billion. Later, technology flaws were exposed, resulting in a months-long trial where Holmes was found guilty on three counts of wire fraud and one count of conspiracy. Holmes was sentenced to more than 11 years in prison and will begin serving her time on April 27, 2023. In 2014, blood-testing startup Theranos and its founder, Elizabeth Holmes, were on top of the world.Back then, Theranos was a revolutionary idea thought up by a woman hailed as a genius who styled herself as a female Steve Jobs. Holmes was the world's youngest female self-made billionaire, and Theranos was one of Silicon Valley's unicorn startups, valued at an estimated $9 billion. But then it all came crashing down.The shortcomings and inaccuracies of Theranos's technology were exposed, along with the role Holmes played in covering it all up. Holmes was ousted as CEO and charged with "massive fraud," and the company was forced to close its labs and testing centers, ultimately shuttering operations altogether.In January, jurors of a federal court found Holmes guilty on three counts of wire fraud and one count of conspiracy to commit wire fraud. They found her not guilty on four other counts and failed to reach a unanimous verdict on the remaining three counts against her.Holmes' former romantic and business partner Ramesh "Sunny" Balwani, was also convicted of fraud, in July. He was found guilty on all 12 fraud-related charges.Holmes previously asked the presiding judge in her case to overturn her conviction. In May, Holmes' attorneys argued evidence was "insufficient to sustain the convictions." In early September, a judge tentatively denied Holmes' request.She also filed three motions requesting a new trial, all of which the judge ultimately denied.On Friday, Holmes was sentenced to 11 years and 3 months in prison with 3 years of supervised release. She'll report to prison on April 27, 2023.Here's how Holmes went from precocious child, to ambitious Stanford dropout, to an embattled startup founder sentenced to prison: Elizabeth Holmes was born on February 3, 1984 in Washington, D.C. Her mom, Noel, was a Congressional committee staffer, and her dad, Christian Holmes, worked for Enron before moving to government agencies like USAID.@eholmes2003/TwitterSource: Elizabeth Holmes/Twitter, CNN, Vanity FairHolmes' family moved when she was young, from Washington, D.C. to Houston.Washington, D.C.Getty ImagesSource: FortuneWhen she was 7, Holmes tried to invent her own time machine, filling up an entire notebook with detailed engineering drawings. At the age of 9, Holmes told relatives she wanted to be a billionaire when she grew up. Her relatives described her as saying it with the "utmost seriousness and determination."Theranos CEO Elizabeth Holmes.REUTERS/Carlo AllegriSource: CBS News, Bad Blood: Secrets and Lies in a Silicon Valley StartupHolmes had an "intense competitive streak" from a young age. She often played Monopoly with her younger brother and cousin, and she would insist on playing until the end, collecting the houses and hotels until she won. If Holmes was losing, she would often storm off. More than once, she ran directly through a screen on the door.Elizabeth Holmes, CEO of Theranos, attends a panel discussion during the Clinton Global Initiative's annual meeting in New York, September 29, 2015.REUTERS/Brendan McDermidSource: Bad Blood: Secrets and Lies in a Silicon Valley StartupIt was during high school that Holmes developed her work ethic, often staying up late to study. She quickly became a straight-A student, and even started her own business: she sold C++ compilers, a type of software that translates computer code, to Chinese schools.Tyrone Siu/ReutersSource: Fortune, Bad Blood: Secrets and Lies in a Silicon Valley StartupHolmes started taking Mandarin lessons, and part-way through high school, talked her way into being accepted by Stanford University’s summer program, which culminated in a trip to Beijing.Yepoka Yeebo / Business InsiderSource: Bad Blood: Secrets and Lies in a Silicon Valley StartupInspired by her great-great-grandfather Christian Holmes, a surgeon, Holmes decided she wanted to go into medicine. But she discovered early on that she was terrified of needles. Later, she said this influenced her to start Theranos.Hollis Johnson/Business InsiderSource: San Francisco Business TimesHolmes went to Stanford to study chemical engineering. When she was a freshman, she became a "president's scholar," an honor which came with a $3,000 stipend to go toward a research project.STANFORD, CA - MAY 22: People ride bikes past Hoover Tower on the Stanford University campus on May 22, 2014 in Stanford, California. According to the Academic Ranking of World Universities by China's Shanghai Jiao Tong University, Stanford University ranked second behind Harvard University as the top universities in the world. UC Berkeley ranked third. (Photo by Justin Sullivan/Getty Images)Justin Sullivan/GettySource: FortuneHolmes spent the summer after her freshman year interning at the Genome Institute in Singapore. She got the job partly because she spoke Mandarin.An office worker walks along the Singapore River front during the lunch hour.Wong Maye-E/APSource: FortuneAs a sophomore, Holmes went to one of her professors, Channing Robertson, and said: "Let's start a company." With his blessing, she founded Real-Time Cures, later changing the company's name to Theranos. Thanks to a typo, early employees’ paychecks actually said "Real-Time Curses."Getty ImagesSource: Bad Blood: Secrets and Lies in a Silicon Valley StartupHolmes soon filed a patent application for a "medical device for analyte monitoring and drug delivery," a wearable device that would administer medication, monitor patients' blood, and adjust the dosage as needed.Reuters/Brian SnyderSource: Fortune, US Patent OfficeBy the next semester, Holmes had dropped out of Stanford altogether, and was working on Theranos in the basement of a college house.Jeff Chiu/APSource: Wall Street JournalTheranos's business model was based around the idea that it could run blood tests, using proprietary technology that required only a finger pinprick and a small amount of blood. Holmes said the tests would be able to detect medical conditions like cancer and high cholesterol.Theranos Chairman, CEO and Founder Elizabeth Holmes (L) and TechCrunch Writer and Moderator Jonathan Shieber speak onstage at TechCrunch Disrupt at Pier 48 on September 8, 2014 in San Francisco, CaliforniaSteve Jennings/Getty ImagesSource: Wall Street JournalHolmes started raising money for Theranos from prominent investors like Oracle founder Larry Ellison and Tim Draper, the father of a childhood friend and the founder of prominent VC firm Draper Fisher Jurvetson. Theranos raised more than $700 million, and Draper has continued to defend Holmes.Investor Tim Draper (right).CNBCSource: SEC, CrunchbaseHolmes took investors' money on the condition that she wouldn't have to reveal how Theranos' technology worked. Plus, she would have final say over everything having to do with the company.JP Yim/GettySource: Vanity FairThat obsession with secrecy extended to every aspect of Theranos. For the first decade Holmes spent building her company, Theranos operated in stealth mode. She even took three former Theranos employees to court, claiming they had misused Theranos trade secrets.Kimberly White/GettySource: San Francisco Business TimesHolmes' attitude toward secrecy and running a company was borrowed from a Silicon Valley hero of hers: former Apple CEO Steve Jobs. Holmes started dressing in black turtlenecks like Jobs, decorated her office with his favorite furniture, and like Jobs, never took vacations.Steve Jobs.Justin Sullivan/Getty ImagesSource: Vanity FairEven Holmes's uncharacteristically deep voice may have been part of a carefully crafted image intended to help her fit in in the male-dominated business world. In ABC's podcast on Holmes called "The Dropout," former Theranos employees said the CEO sometimes "fell out of character," particularly after drinking, and would speak in a higher voice.Former U.S. President Bill Clinton and Elizabeth Holmes, CEO of Theranos, during the Clinton Global Initiative's annual meeting in New York.Lucas Jackson/ReutersSource: Bad Blood: Secrets and Lies in a Silicon Valley Startup, The CutHolmes was a demanding boss, and wanted her employees to work as hard as she did. She had her assistants track when employees arrived and left each day. To encourage people to work longer hours, she started having dinner catered to the office around 8 p.m. each night.TheranosSource: Bad Blood: Secrets and Lies in a Silicon Valley StartupMore behind-the-scenes footage of what life was like at Theranos was revealed in leaked videos obtained by the team behind the HBO documentary "The Inventor: Out for Blood in Silicon Valley." The more than 100 hours of footage showed Holmes walking around the office, scenes from company parties, speeches from Holmes and Balwani, and Holmes dancing to "U Can't Touch This" by MC Hammer.Theranos founder Elizabeth Holmes at the company's headquarters.Courtesy HBOSource: Business InsiderShortly after Holmes dropped out of Stanford at age 19, she began dating Theranos president and COO Sunny Balwani, who was 20 years her senior. The two met during Holmes' third year in Stanford’s summer Mandarin program, the summer before she went to college. She was bullied by some of the other students, and Balwani had come to her aid.Footage of Sunny Balwani presenting."60 Minutes"Source: Bad Blood: Secrets and Lies in a Silicon Valley StartupBalwani became Holmes' No. 2 at Theranos despite having little experience. He was said to be a bully, and often tracked his employees' whereabouts. Holmes and Balwani eventually broke up in spring 2016 when Holmes pushed him out of the company.Sunny Balwani pictured in January 2019.Justin Sullivan/Getty ImagesSource: Bad Blood: Secrets and Lies in a Silicon Valley StartupIn 2008, the Theranos board decided to remove Holmes as CEO in favor of someone more experienced. But over the course of a two-hour meeting, Holmes convinced them to let her stay in charge of her company.Jamie McCarthy / GettySource: Bad Blood: Secrets and Lies in a Silicon Valley StartupAs Theranos started to rake in millions of funding, Holmes became the subject of media attention and acclaim in the tech world. She graced the covers of Fortune and Forbes, gave a TED Talk, and spoke on panels with Bill Clinton and Alibaba's Jack Ma.Elizabeth Holmes with former President Bill Clinton, left, and Alibaba cofounder Jack Ma.Andrew Burton/Getty ImagesSource: Vanity FairTheranos quickly began securing outside partnerships. Capital Blue Cross and Cleveland Clinic signed on to offer Theranos tests to their patients, and Walgreens made a deal to open Theranos testing centers in their stores. Theranos also formed a secret partnership with Safeway worth $350 million.A Theranos testing center inside a Walgreens.Melia Robinson/Business InsiderSource: Wired, Business InsiderIn 2011, Holmes hired her younger brother, Christian, to work at Theranos, although he didn’t have a medical or science background. Christian Holmes spent his early days at Theranos reading about sports online and recruiting his Duke University fraternity brothers to join the company. People dubbed Holmes and his crew the "Frat Pack" and "Therabros."Elizabeth Holmes and her brother, Christian.Andrew Harrer/Bloomberg via Getty ImagesSource: Bad Blood: Secrets and Lies in a Silicon Valley StartupAt one point, Holmes was the world's youngest self-made female billionaire with a net worth of around $4.5 billion.Kimberly White/Getty Images for Breakthrough PrizeSource: ForbesHolmes was obsessed with security at Theranos. She asked anyone who visited the company’s headquarters to sign non-disclosure agreements before being allowed in the building, and had security guards escort visitors everywhere — even to the bathroom.Michael Dalder/Reuters Holmes hired bodyguards to drive her around in a black Audi sedan. Her nickname was "Eagle One." The windows in her office had bulletproof glass.Source: Bad Blood: Secrets and Lies in a Silicon Valley StartupAround the same time, questions were being raised about Theranos' technology. Ian Gibbons — chief scientist at Theranos and one of the company's first hires — warned Holmes that the tests weren't ready for the public to take, and that there were inaccuracies in the technology. Outside scientists began voicing their concerns about Theranos, too.Melia Robinson/Tech InsiderSource: Vanity Fair, Business InsiderBy August 2015, the FDA began investigating Theranos, and regulators from the government body that oversees laboratories found "major inaccuracies" in the testing Theranos was doing on patients.Mike Segar/ReutersSource: Vanity FairBy October 2015, Wall Street Journal reporter John Carreyrou published his investigation into Theranos's struggles with its technology. Carreyrou's reporting sparked the beginning of the company's downward spiral.Wall Street Journal reporter John Carreyrou.CBS "60 Minutes"Source: Wall Street JournalCarreyrou found that Theranos' blood-testing machine, named Edison, couldn't give accurate results, so Theranos was running its samples through the same machines used by traditional blood-testing companies.Carlos Osorio/APSource: Wall Street JournalHolmes appeared on CNBC's "Mad Money" shortly after the WSJ published its story to defend herself and Theranos. "This is what happens when you work to change things, and first they think you're crazy, then they fight you, and then all of a sudden you change the world," Holmes said.CNBC/YouTubeSource: CNBCBy 2016, the FDA, Centers for Medicare & Medicaid Services, and SEC were all looking into Theranos.GettySource: Wall Street Journal, WiredIn July 2016, Holmes was banned from the lab-testing industry for two years. By October, Theranos had shut down its lab operations and wellness centers.Mike Blake/ReutersSource: Business InsiderIn March 2018, Theranos, Holmes, and Balwani were charged with "massive fraud" by the SEC. Holmes agreed to give up financial and voting control of the company, pay a $500,000 fine, and return 18.9 million shares of Theranos stock. She also isn't allowed to be the director or officer of a publicly traded company for 10 years.Jeff Chiu/APSource: Business InsiderDespite the charges, Holmes was allowed to stay on as CEO of Theranos, since it's a private company. The company had been hanging on by a thread, and Holmes wrote to investors asking for more money to save Theranos. "In light of where we are, this is no easy ask," Holmes wrote.Kimberly White/Getty Images for FortuneSource: Business InsiderIn Theranos' final days, Holmes reportedly got a Siberian husky puppy named Balto that she brought into the office. However, the dog wasn't potty trained, and would go to the bathroom inside the company's office and during meetings.A Siberian husky (not Holmes' dog).Kateryna Orlova/ShutterstockSource: Vanity FairIn June 2018, Theranos announced that Holmes was stepping down as CEO. On the same day, the Department of Justice announced that a federal grand jury had charged Holmes, along with Balwani, with nine counts of wire fraud and two counts of conspiracy to commit wire fraud.Elizabeth Holmes, founder and CEO of Theranos, speaks at the Wall Street Journal Digital Live (WSJDLive) conference at the Montage hotel in Laguna Beach, California, October 21, 2015.Mike Blake/ReutersSource: Business Insider, CNBCTheranos sent an email to shareholders in September 2018 announcing that the company was shutting down. Theranos reportedly said it planned to spend the next few months repaying creditors with its remaining resources.Mike Blake/ReutersSource: Wall Street JournalAround the time Theranos' time was coming to an end, Holmes made her first public appearance alongside William "Billy" Evans, a 27-year-old heir to a hospitality property management company in California. The two reportedly first met in 2017, and were seen together in 2018 at Burning Man, the art festival in the Nevada desert.Jim Rankin/Toronto Star via Getty ImagesSource: Daily MailHolmes is said to wear Evans' MIT "signet ring" on a chain around her neck, and the couple reportedly posts photos "professing their love for each other" on a private Instagram account. Evans' parents are reportedly "flabbergasted" at their son's decision to marry Holmes.—Nick Bilton (@nickbilton) February 21, 2019Source: Vanity Fair, New York PostIt's unclear where Holmes and Evans currently reside, but they were previously living in a $5,000-a-month apartment in San Francisco until April 2019. The apartment was located just a few blocks from one of the city's top tourist attractions, the famously crooked block of Lombard Street.Lombard Place Apartments, where Holmes used to live.Rent SF NowSource: Business InsiderIt was later reported that Holmes and Evans got engaged in early 2019, then married in June in a secretive wedding ceremony. Former Theranos employees were reportedly not invited to the wedding, according to Vanity Fair.Gilbert Carrasquillo/Getty Images; Samantha Lee/Business InsiderSource: Vanity Fair, New York PostHolmes' and Balwani's cases have since been separated.Justin Silva/Getty, Stephen Lam/Reuters, Business InsiderSource: Department of Justice, Business InsiderBesides the criminal case, Holmes was also involved in a number of civil lawsuits, including one in Arizona brought by former Theranos patients over inaccurate blood tests. The lawyers representing her in the Arizona case said in late 2019 they hadn't been paid over a year and asked to be removed from Holmes' legal team.Former Theranos CEO Elizabeth Holmes leaves after a hearing at a federal court.Reuters/Stephen LamSource: Business InsiderHolmes' lawyers in the federal case had tried to get the government's entire case thrown out. In February 2020, Holmes caught a break after some of the charges against her were dropped when a judge ruled that some patients didn't suffer financial loss.Brendan McDermid/ReutersSource: Business InsiderAmid the coronavirus outbreak, Holmes' lawyers asked the judge in April 2020 to deem the case "essential" so the defense team could defy lockdown orders and continue to travel and meet face-to-face. The judge said he was "taken aback" by the defense's pleas to violate lockdown.Reuters/Robert GalbraithSource: Business Insider It soon become clear that the pandemic — and the health risks associated with assembling a trial in one — would make the July trial date unrealistic. Through hearings held on Zoom, the presiding judge initially pushed the trial back to October 2020 and later postponed it further to March 2021.Passengers wear masks as they walk through LAX airport.Reuters/Lucy NicholsonSource: Business Insider In March 2021, Holmes requested another delay to the trial because she was pregnant. She asked to push back the trial to August 31, and her request was granted. Holmes reportedly gave birth to the child in July.Nhat V. Meyer/MediaNews Group/Mercury News via Getty ImagesSource: Business Insider, CNBCHeading into the trial, Holmes felt "wronged, like Salem-witch-trial wronged," says a person who used to work with her closely.Holmes, right, leaving the Robert F. Peckham Federal Building in San Jose, California with her defense team on May 4, 2021.Nhat V. Meyer/MediaNews Group/Mercury News via Getty ImagesSource: Business InsiderThe trial kicked off in September. In opening statements, prosecutors argued that, "Out of time and out of money, Elizabeth Holmes decided to lie." Meanwhile, the defense argued that although Theranos ultimately crumbled, "Failure is not a crime. Trying your hardest and coming up short is not a crime."Theranos founder Elizabeth Holmes arrives at the Robert F. Peckham Federal Building with her defense team on August 31, 2021 in San Jose, California.Ethan Swope/Getty ImagesSource: Business Insider The list of possible witnesses for the trial named roughly 200 people, including the likes of Rupert Murdoch, Henry Kissinger, James Mattis, and Holmes herself.Theranos founder Elizabeth Holmes leaves the Robert F. Peckham U.S. Courthouse with her mother, Noel Holmes, during her trial.Brittany Hosea-Small/ReutersSource: Business InsiderIn the end, the trial featured testimony from just over 30 witnesses.Vicki Behringer/ReutersSource: Business InsiderOver the course of 11 weeks, prosecutors called 29 witnesses to testify — including former Theranos employees, investors, patients, and doctors — before resting their case in November.Vicki BehringerSource: Business Insider The defense then began making its case, calling just three witnesses, including Holmes herself.Jane Tyska/Digital First Media/The Mercury News via Getty ImagesSource: Business InsiderOn the stand, Holmes said Balwani emotionally and sexually abused her during their relationship.Former Theranos COO Ramesh "Sunny' Balwani leaves the Robert F. Peckham U.S. Federal Court on June 28, 2019 in San Jose, California.Justin Sullivan/Getty ImagesSource: Business InsiderHolmes also admitted that she added some pharmaceutical companies' logos to Theranos' reports without authorization. Investors previously said they took some reassurance in those reports because, based on the logos, they thought major pharmaceutical companies had validated Theranos' technology. Holmes said she added the logos to convey that work was done in partnership with those companies, but in hindsight she wishes she had "done it differently."Justin Sullivan/Getty ImagesSource: Business InsiderHolmes also acknowledged on the stand that she hid Theranos' use of modified commercial devices from investors. She said she did this because company counsel told her that alterations the company made to the machines were trade secrets and needed to be protected as such.Brittany Hosea-Small/ReutersSource: Business InsiderHolmes spent seven days on the stand before the defense rested its case in early December.Theranos founder Elizabeth Holmes arrives to attend her fraud trial at federal court in San Jose, California, U.S., December 16, 2021.Peter DaSilva/ReutersSource: Business InsiderIn closing arguments, prosecutors argued that Holmes "chose fraud over business failure" while the defense argued she was "building a business, not a criminal enterprise."Elizabeth Holmes walks into federal court in San Jose, Calif., Friday, Dec. 17, 2021.Nic Coury/Associated PressSource: Business InsiderAfter 15 weeks of trial, Holmes' case headed to a jury of eight men and four women on December 17.Elizabeth Holmes, founder and former CEO of blood testing and life sciences company Theranos, leaves the courthouse with her husband Billy Evans after the first day of her fraud trial in San Jose, California on September 8, 2021.Nick Otto/AFP/Getty ImagesSource: Business InsiderJurors deliberated for a total of seven days over the next few weeks before telling the court on January 3 that they were deadlocked on three of the 11 charges against Holmes. The judge read off some jury instructions to the group in court before instructing them to go back and deliberate further.Kate Munsch/ReutersSource: Business InsiderHours later, the jury returned a mixed verdict for Holmes, finding her guilty on one count of conspiracy to defraud investors and three counts of wire fraud. They found her not guilty on four other counts and failed to reach a verdict on the remaining three counts.Justin Sullivan/Getty ImagesSource: Business InsiderThe counts Holmes was found guilty of were all related to investments; she wasn't convicted on any of the charges involving patients who received inaccurate test results.David Odisho/Getty ImagesSource: Business InsiderHolmes now faces the possibility of decades in prison. Each count carries a maximum 20-year prison sentence, a $250,000 fine, and a requirement to pay victims restitution.AP Photo/Nic Coury, FileSource: Business Insider Legal experts told Insider it's unlikely Holmes will get 20 years at sentencing, but she probably won't get off without serving any time either.Justin Sullivan/Getty ImagesSource: Business InsiderHolmes was not taken into custody following the verdict and will remain free until her sentencing on a $500,000 bond secured by property.Peter DaSilva/ReutersSource: Business InsiderSince the conviction, Holmes and Theranos have been the focus of a Hulu limited series, "The Dropout," based on the ABC News podcast of the same name.Amanda Seyfried in "The Dropout" (left); Elizabeth Holmes (right)Beth Dubber/Hulu; Steve Jennings/Getty Images for TechCrunchSource: Business InsiderHolmes is played by Amanda Seyfried in the dramatized series, which asks the question, "How did the world's youngest self-made female billionaire lose it all in the blink of an eye?"Amanda Seyfried in "The Dropout."HuluSource: HuluThe show premiered March 3 and also stars Naveen Andrews as Balwani, Holmes' right-hand man at Theranos. Balwani's fraud trial began in March.Beth Dubber/Hulu; Michael Short/Bloomberg via Getty ImagesSource: Business Insider Now, Holmes is pleading with a judge to toss her conviction.APSource: Business Insider In a 24-page filing on May 27, Holmes' attorneys argued for her acquittal, saying the evidence was "insufficient to sustain the convictions."Nick Otto/AFP via Getty ImagesThey wrote, "Because no rational juror could have found the elements of wire fraud and conspiracy to commit wire fraud beyond a reasonable doubt on this record, the Court should grant Ms. Holmes' motion for judgment of acquittal.""Even if Ms. Holmes committed wire fraud against an investor (she did not) and even if Mr. Balwani committed wire fraud against an investor, that does not prove a conspiratorial agreement between them, nor does it prove that Ms. Holmes willfully joined any agreement," the attorneys continued in the filing.The presiding judge tentatively denied Holmes' request in September.But that wasn't the end: Since then, Holmes also filed three motions requesting a new trial, one of which centered on the testimony of a prosecution witness who allegedly went to Holmes' house in August and expressed regret that he helped convict her.David Odisho/Getty ImagesSource: Business InsiderThe witness was former Theranos lab director Adam Rosendorff. According to an account of the incident from Billy Evans, Holmes' partner, Rosendorff showed up at their home looking "disheveled" and said he felt "guilty."David Odisho/Getty Images"He said when he was called as a witness he tried to answer the questions honestly but that the prosecutors tried to make everybody look bad (in the company)," Evans recalled in an email to Holmes' attorneys about their interaction. "He said that the government made things sound worse than they were when he was up on the stand during his testimony. He said he felt like he had done something wrong. And that this was weighing on him, He said he was having trouble sleeping."In another of Holmes' motions for a new trial, she says the prosecution portrayed her relationship with Balwani differently in their respective trials, to her detriment.In the final motion, Holmes said she was denied emails showing prosecutors failed to take appropriate steps to preserve a Theranos database that she claims would have helped her defense, even though the government furnished these materials when Balwani was on trial.Holmes notched a small victory when the presiding judge ordered an evidentiary hearing regarding Rosendorff's testimony and appearance at her home. This hearing meant that Holmes' sentencing was postponed from October 17 to November 18.Dai Sugano/MediaNews Group/The Mercury News via Getty ImagesSource: Business InsiderThe evidentiary hearing proved useless to Holmes, though, as witness Rosendorff said he stood by his initial testimony and only went to her home because he was "distressed" at the idea of Holmes' child growing up without a mother.Justin Sullivan/Getty Images"At all times the government encouraged me to tell the truth and only the truth," Rosendorff clarified at the hearing."I don't want to help Ms. Holmes," Rosendorff added. "The only person that can help her is herself. She needs to pay her debt to society."On November 8, the presiding judge denied all three of Holmes' motions for a new trial, paving the way for sentencing.Chris Ryan/GettyDays before her sentencing, Holmes' attorneys asked that she get no more than 18 months, preferably under house arrest. They submitted 130 filings from friends and family also pleading for leniency.In the end, they didn't get their wish. On November 18, Holmes was sentenced to 135 months, or 11.25 years, in prison with 3 years of supervised release.Holmes in a federal court in San Jose, California, on November 18, 2022.Nic Coury/AP"I stand before you taking responsibility for Theranos. I loved Theranos, it was my life's work," Holmes said through tears at the hearing. "I am so, so sorry. I gave everything I had to building and trying to save our company."Judge Edward Davila determined the loss to investors in share value was $21 million. Restitution will be determined at a later date, and Holmes will report to prison on April 27, 2023.Meanwhile, the sentencing hearing for Balwani, who was convicted on all 12 charges brought against him, is set for December 7.Paige Leskin and Maya Kosoff contributed to earlier versions of this story.Read the original article on Business Insider.....»»

Category: worldSource: nytNov 18th, 2022

Revolut pays some senior talent up to $300,000 in base salary and is still hiring. Here are 3 valuable traits in applicants, according to its global head of HR.

Mass layoffs have hit the tech industry in recent months, but Revolut is still hiring with plans to increase its workforce by 20%. Revolut's executive team: Vlad Yatsenko, Nik Storonsky, Mikko SalovaaraRevolut Banking unicorn Revolut is hiring for over 200 positions, as mass layoffs hit the tech industry.  Getting a job at Revolut is a highly competitive process, its global head of HR said.  She offered three valuable traits the firm looks for when hiring including problem-solving.  Mass layoffs are hitting the tech industry in the US and Europe, but unicorn banking startup Revolut announced plans to increase its workforce by 20% in August.Major firms such as Meta, Microsoft, and Tesla have all laid off staff or frozen hiring. Revolut's fintech peers such as Coinbase, Robinhood, and Klarna have also slashed roles. Revolut is growing and "expanding in many countries," global head of HR Alexandra Loi said in an interview. The company is being "cautious" in the downturn about hiring the right people for the right roles, but it is still "fully going on with recruitment." Revolut was launched by founders Nikolay Storonsky and Vlad Yatsenko in 2015, offering banking services globally. Users can make online payments and purchases across various currencies through its apps and debit cards. The firm's valuation has grown to $33 billion, though Storonsky has ruled out an IPO for the time being.In 2019, the firm was accused by then-employees of creating a culture of burnout, unpaid work, high turnover, and tough goals, in an investigation by Wired in 2019. Storonsky published an open letter in 2019 responding to these claims saying "we haven't always gotten things right," but that the company is not the same as it was "12 to 18 months ago when these mistakes were made."  Loi described the culture as "diverse" and "supportive" adding that there remain high expectations and a "high-performance culture."The firm isn't hiring gung-ho, introducing some cost-cutting measures including rescinding offers for four graduate roles in September. Loi said that the company is still hiring for over 200 roles, primarily in engineering, sales, and other corporate functions. She emphasized that people with STEM-related degrees or degrees from top universities are strong candidates. There's a range of open roles currently on Revolut's website including for a 3D designer, a backend software engineer in crypto, and a growth marketing manager in Europe. Loi said the firm received more than 250,000 applications in the first three months of the year across 576 positions.Senior staff at the company are compensated with six-figure base salaries depending on location, according to previous Insider reporting on the company's foreign-disclosure-hire data in the US between 2019 and 2021. The highest paid salary in the data set was $300,000 for an operations partner. A head of crypto made $250,000 and a senior backend engineer made $175,000. The hiring process includes sending a résumé and Linkedin profile; a phone screening; three interviews to check technical skills, problem-solving skills, and cultural fit. Loi explained three traits the firm looks for when hiring. 1. People who get things done Two of the firm's most "critical" values are "get it done," and "delivering wow," according to Loi. "This means we know what we're after, we push through, we don't have roadblocks and we make things happen," Loi said. "So we don't use excuses, we do not go with 'I cannot do it,' we find a way, and we have the determination to deliver, finding the ways and breaking through."Storonsky said the company is about "getting s**t done," he told Insider in 2017."Delivering wow" means finding ways to create "seamless or amazing," products and experiences for customers. Specific skills are required to embody these values and this includes 'problem-solving,' Loi added. "It's about being open-minded, using your logic, reason, common sense, and being able to think deeper about problems and come up with the right solutions," she said. "We need people that will not say, 'Okay, that's fine,' but will always ask, 'What can we do more? How can we strive for excellence? How can we be the best at what we do?'" 2. Authenticity is valued The best way to impress Revolut recruiters is just "being yourself," because they can then really judge if you're "the right fit" for the job. "If I go into an interview and try to impress by over-emphasizing some aspects that are not necessarily true or underemphasize some others, and I get accepted to get the job, then what we have seen out of statistics is that the probability that this person doesn't stay long is higher than someone who has fully been themselves in the interview," Loi explained. She advises candidates to be confident and share their knowledge, aspirations, interests, and who they really are. "Show us who you are, not who you want us to think you are," Loi said.3. An understanding of the company One of the most common reasons job applications get rejected in any industry is not preparing for the interview and researching the company in advance.Loi urges applicants "to do a bit of research" and have a "concrete reason" for wanting to join the company. "Know why you want to go into a company apart from the fact that it's a great brand name," she said.Loi said candidates should "check out the product" and assess whether they actually like the app and services. Additionally, research the company culture to figure out if it aligns with your values and if you can really see yourself fitting there.She added: "My overall advice to every person who would want to be part of this journey is to be themselves. Are you hungry? Are you motivated? Do you like to solve problems? Most probably it's a great place for you. So we're really looking forward to more applications, more people coming in, and developing strong talents. We're very open." Read the original article on Business Insider.....»»

Category: topSource: businessinsiderNov 3rd, 2022

Why Illinois Is In Trouble – 132,188 Public Employees With $100,000+ Paychecks Cost Taxpayers $17 Billion

Why Illinois Is In Trouble – 132,188 Public Employees With $100,000+ Paychecks Cost Taxpayers $17 Billion By Adam Andrzejewski of Open The Books substack So, just who is making all of this money? Meet the Illinois government employee $100,000 Club. It's comprised of 132,188 public employees and retirees who earned a new ‘minimum wage’ of $100,000 or more. While crime skyrockets in the neighborhoods, test scores plummet in the public schools, and inflation decimates private-sector paychecks, the Illinois public employee class is living the good life. Our auditors at OpenTheBooks.com found nearly 500 educators in the public schools with salaries between $200,000 and $439,000. In small towns, city managers made up to $341,300. Three doctors at the University of Illinois at Chicago earned incomes between $1 million and $2.1 million. Barbers trimmed off $104,000 at State Corrections; janitors at the Chicago Transit Authority cleaned up $143,634; bus drivers in Chicago picked up $242,812; and suburban community college presidents made $418,677. Use Our Quick Search Tool Using our interactive mapping tool, quickly review (by employer ZIP code) the 132,188 public employees and retirees across Illinois making more than $100,000. Just click a pin (ZIP Code) and scroll down to see the results in your hometown rendered in the chart beneath the map. Following The Money Public schools (43,500) – Last year, 26,904 educators earned six-figure salaries while 16,592 retirees pocketed $100,000+ pensions. However, test scores plummeted with only 31-percent of students reading at grade level. Big salaries: Eighteen school superintendents made $300,000+, among them Edward Mansfield (Homewood Flossmoor D233— $434,323); Michael Lubelfeld (North Shore School D112— $392,952); Gregory Jackson (Ford Heights D169—$379,465); Kevin Nohelty (Dolton School D148—$373,626); and Blair Nuccio (Indian Springs D109—$355,154). Big pensions: Eighteen retired school superintendents received $300,000+ in retirement pensions, among them Lawrence A. Wyllie (Lincoln-Way CHSD 210 – $361,787.64); Henry Bangser (New Trier Township HSD 203 – $351,676); Gary Catalani (Wheaton-Warrenville Unit SD 200 – $350,113.08); Laura Murray (Homewood-Flossmoor CHSD 233 – $344,450); and Mary Curley (Hinsdale CCSD 181 – $334,540.20). In 2021, the Top 10 most highly compensation City of Chicago employees. Chicago (28,000) – Why is crime out of control in Chicago? It’s a matter of political will— not pay. The Chicago police and fire departments paid 600 employees between $200,000 and $480,000 in cash compensation last year. In Chicago, 41 ‘street light repair’ workers made between $100,000 and $196,123 and 61 city ‘sign painters’ made six-figures up to $145,341. The boss at the city auto pound reaped $124,783 while the janitors at the auto pound made six-figures too. ‘Sanitation laborers’ made up to $125,783. In Chicago Public Schools (CPS), CEO, Janice K. Jackson made $361,762: $298,923 in salary with $62,839 in benefits. Jackson’s salary alone exceeded the pay of the U.S. Secretary of Education ($203,500) --  a cabinet-level position – by $95,423. However, student scores plummeted. Just 26-percent of eleventh graders perform at grade level in math and seven in ten students could not read at grade level. No matter, we found the average teacher in the Chicago Public Schools made $108,730 last year when including benefits. In addition, there were 1,823 employees across six departments – outside the classroom – now dedicated to diversity, equity, inclusion efforts. The Chicago Transit Authority, operator of trains and busses, paid rail service supervisors up to $294,609;  ironworkers as much as $251,376; and line workers $240,835. A signal maintainer took home $302,075, a telephone line worker was paid $247,677 and a customer service representative made $207,202. Incredibly, 378 CTA bus drivers took home $100,000+ and top earner Yolanda Harris picked up $242,812. Colleges & universities (18,000) – University of Illinois basketball coach Bradley Underwood earned $3.2 million last year. Fady Toufic Charbel ($2.029 million); Mark Gonzalez ($1.059 million); and Konstantin Slavin ($1.041 million) are million-dollar doctors at the University of Illinois at Chicago (UIC). Universities: Highly compensated employees included those that work for the University of Illinois Foundation—a private fundraising foundation for the university. A staggering 42 employees cleaned off nearly $7 million in cash compensation making between $100,000 and $294,700 each. The top-paid employee, Edward Wald ($294,700), out-earned the president at Northern Illinois University and every other state university (except Illinois State). Retired professors have some of the biggest pensions: University of Illinois at Chicago professor Wolodymyr Minkowycz ($426,656), University of Illinois at Urbana-Champaign physics prof Gordon Baym ($285,669) and engineering prof Vernon Snoeyink ($274,664). Junior colleges: The top paid presidents included Christine Jean Sobek (Waubonsee Community College — $418,677) and Thomas Ramage (Parkland College—$339,000). Top retirees included Zelema Harris (Parkland College—$253,297); John Swalec (Waubonsee Community College—$239,871); and Vernon Crawley (Moraine Valley Community College— $239,851). State of Illinois (16,500) – Eight barbers at Corrections made between $102,300 and $104,000. Veterans, Human Services, and Corrections paid 484 nurses between $100,100 and $255,300. The top paid sergeants at the State Police earned $309,600. We found more state police officers retired on six-figure pensions (1,555) than officers currently paid on six-figure salaries (1,540)! Gov. Pritzker appointed Cecelia Abundis ($147,500) as Director of Professional Regulations at the Department of Financial and Professional Regulation (IDFPR). It was an odd pick. Years ago, we exposed Abundis billing taxpayers for her 250-mile one-way “commute” from her home in Michigan to Chicago as she “managed” cases after she was promoted to supervisor in Attorney General Lisa Madigan’s office.   A court-ordered monitor, Dr. Stewart Pablo, was paid $321,500 by taxpayers to report on the barriers to access mental healthcare within the prison system – his pay amounts to approximately $1.7 million during the past five years. The Big Dogs of Illinois municipal government (2021). Cities & villages (14,500) – Small town managers collect high pay, along with perks and pension benefits. Top paid managers were Michael J. Ellis (Village of Grayslake –- $302,408); Reid Ottesen (Village of Palatine — $300,900); Richard Nahrstadt (Village of Northbrook – $280,516); and Stephanie Hannon (Village of Bannockburn – $252,360). Most local six-figure employees are in the police and fire departments. The top-paid local police officer worked in Deerfield, John Sliozis ($226,241) although the next five officers making more than $200,000 worked for the Aurora department. The small town of Rosemont (pop. 4,200), near O’Hare International Airport, has three highly compensated officials: Patrick Nagle ($282,304—head of the Allstate Arena entertainment venue), Christopher R. Stephens ($278,227—Executive Director of the Donald E. Stephens Convention Center), and Christopher’s uncle mayor Bradley A. Stephens ($225,652) – who also made $70,100 as an elected state rep. (Bradley is the son of Rosemont’s founding mayor, Donald Stephens, whom the convention center is named after.) Private associations, nonprofits and retired lawmakers There are several legal loopholes for individuals to access state funding through private associations, nonprofit organizations, and state legislative bodies. Retired Chicago Mayor Richard M. Daley (D) double dipped pension systems for nearly $249,636. Daley made $158,076 per year in pension payouts after a short eight-year career as a state senator plus another $91,560 per year in city pension payouts for his 22 years as the mayor of Chicago. Three top paid earners within the municipal-government pension system work for private associations – not government. Brad Cole of the Illinois Municipal League pulled down $437,447, up from $407,656, (2020). Peter Murphy, executive director of Illinois Association of Park Districts, made $357,816, while Brett Davis, executive director of the Park District Risk management Agency, brought in $342,405. Former Illinois Governor Jim Edgar (R) double dipped pension systems: General Assembly pension ($186,660 per year) and University Retirement System pension ($90,336). Last year, Edgar’s total payout in pension heaven? $276,996 Since Edgar left the governorship in 1999, we estimate that he earned $2.4 million in compensation from the University of Illinois (2000-2013) and another $2.5 million in pension payments from his career as legislator, secretary of state and governor. Highly compensated locals DuPage County employees have a history of hefty salaries and pensions. In fact, the old county Republican guard are all retired on golden-parachute public pensions including former state’s attorney Joe Birkett ($182,910); former sheriff John Zaruba ($165,293); and former county clerk Gary King ($157,513). Local park district administrators out earned the state director of parks ($158,100). These included James Pilmer ($256,447 at Fox Valley); Raymond McGury ($227,470 at Naperville); Michael Benard ($213,158 at Wheaton). The top pension payments for park retirees also exceeded $200,000 per year: Steven Messerli and Robert Vaughan, each of Fox Valley Park District, respectively took home $225,664 and $219,559 in retirement pension. Even water district employees tapped into the largess: David Miller (North Shore Water Reclamation District — $235,615); Mark Eddington (Kishwaukee Water Reclamation District— $189,085); and John Spatz (DuPage Water Commission— $225,000). And retirees again received top payments—Albin Pagorski and Gregory Hergenroeder respectively got $226,817 and $216,795 in pensions from the Fox River Water Reclamation District. In 2021, there were 132,188 public employees and retirees making $100,000 or more—up from 94,000 just four years earlier. Soon—It Could Get A Lot Worse Two years ago, Illinois Governor J.B. Pritzker wanted to hike the income tax during pandemic and pushed for a state constitutional amendment to allow for a progressive income tax. However, the voters shot it down, 55-45. This year, Pritzker is pushing Amendment 1 – which would enshrine long-term employment contracts for government workers, multi-year salary increases, constitutional backed lifetime pensions, the power to strike, and much more. It would essentially make Illinois “unreformable.” A recent Wall Street Journal editorial by Wirepoints was headlined, “Unions Ask Illinois Voters To Sign Over Control Of The State.” Already, updated analysis by the American Legislative Exchange Council shows that an Illinois family of four now owes two and a half times more in unfunded government pension liabilities ($168,000) than they earn in household income ($63,585). In a state of 13 million residents, every man, woman, and child owes $42,000 — on an estimated $533 billion pension liability for public employees. Illinois may have already crossed the Rubicon. And now the public-sector unions are giving the state the last push off the cliff. Note: all compensation amounts listed are cash compensation, or pensionable compensation and do not incorporate the cost of benefits, i.e. health insurance, etc., unless otherwise cited. Tyler Durden Sun, 10/30/2022 - 13:00.....»»

Category: dealsSource: nytOct 30th, 2022

Why Sol Trujillo’s L’Attitude Ventures Sees Latino-Owned Businesses as a Growth Market

Trujillo is working to circulate data to help convince leaders they should invest in Latino businesses and appoint more Latino execs Barack Obama and Lin-Manuel Miranda were just a few of the thousands of people who gathered in San Diego this week for the fifth annual L’Attitude conference, an event helping executives understand the potential of Latinos in the U.S. economy. L’Attitude is the brainchild of Solomon “Sol” Trujillo, who has served as CEO of international companies including US West, Orange, and Telestra, the Australian telecoms company. Trujillo has focused, since his return to the U.S. from Australia in 2009, on changing negative perceptions of Latinos in the U.S. Through the Latino Donor Collaborative, a nonprofit he co-founded in 2010, Trujillo is working to circulate data that can help convince leaders that they should invest in Latino businesses and appoint more Latino executives. The total economic output of Latinos in the U.S. was $2.8 trillion in 2020, according to a report released Sept. 22 by L’Attitude. That’s a figure that is higher than the GDP of the U.K., India, or France, and one that he hopes will turn executives’ heads. [time-brightcove not-tgx=”true”] Trujillo is also CEO of L’Attitude Ventures, a venture capital (VC) firm he founded in 2019 to invest in businesses led by Latinos. He says he’s tired of seeing Latino founders coming out of good schools that people don’t recognize and then struggling to secure the funding they need. “The punchline is, they’re hungry,” he tells TIME. “They have ideas and they’re willing to do what’s needed. They just need fuel for their business.” It’s not all that different from how he had to hustle when he graduated from the University of Wyoming in 1974, he says. This interview has been condensed and edited for clarity. CO2.com enables every business to maximize their impact through high-quality climate action portfolios. Created by experts, backed by science and verified by independent third parties. For more information, and to accelerate your climate journey, go to co2.com You were a longtime CEO when you decided to start a nonprofit, the Latino Donor Collaborative. Tell me what motivated that shift. I’ve operated companies all over the world, but I was born in the United States. My family’s roots go back about 500 years. I feel a lot of pride in what our country stands for. But when I was living abroad, I saw people [in the U.S.] talking about building walls, deporting people. I thought, number one, that’s not what our country is about. I was a young business person when Ronald Reagan was telling the Russian President to take down walls. We believed in opening things up. And number two, it doesn’t make sense economically. As a country, we’re aging, and we need workers. Once you start cutting off immigration, then you start running into the problems that we now have in today’s economy. The reason why we have inflation—the driving variable that nobody wants to talk about—is that we don’t have enough workers. The wage inflation drives pricing inflation, which then creates disruptions all over. So when I was coming back in 2009, I decided to start gathering data and create a nonprofit, which was called the Latino Donor Collaborative. I co-founded it with (former San Antonio mayor) Henry Cisneros—he was the Democrat, I was the Republican. We decided to start thinking about the Latino brand, and why the perception was that Latinos are all bad people. We knew the perceptions were wrong. We wanted to get the data so we can help people understand it. What were the perceptions at the time and how did that differ from the reality shown in the data you gathered? A poll we commissioned then found that two thirds of Americans believed that Latinos were here as takers, tying up schools, tying up hospitals, with everyone going on welfare. And only a third thought that they were here as productive, contributing citizens. But we found the Latino cohort is the most productive of all cohorts in the United States. Because people came here to essentially pursue the American dream. They disproportionately serve in the military, protecting our country. They’re the most entrepreneurial—the highest percentage of net new business formations were being developed by Latinos. Our recent study found that out of all net new small businesses with employees, 52% were created by Latinos. Where do those negative perceptions come from? Everywhere in the world we live with perceptions of others. If you’re the most common cohort in a country, you understand that cohort, but then when there’s other people that are different, you make assumptions about them. Part of this stems from the media. Our most recent study shows that although Latinos are 25% of all American youth, Latinos have only 3.1% of lead roles in shows, are only 1.5% of showrunners, and less than 1.3% of directors. In many of these shows, portrayals of Latinos are as gangbangers, drug dealers, criminals. The few that are positive, you have a Latino nanny or maid—or Pablo, the trusted gardener who speaks with an accent and does low paid work. So perceptions develop. Part of your work is trying to change the perceptions that Americans have of Latinos. How do you run that advertising campaign for people who are getting bombarded with the opposite images in the media? We live in a capitalist economy. And one of the common things I’ve seen around the world is those who create wealth have the most influence. And so you need to think about how you help people understand how core the Latino cohort is to the economy, and also show that they’re creating a lot of wealth. That’s why I came up with the idea of this GDP report that shows the total economic output of Latinos in the United States. Between 2010 and 2020, the U.S. Latino GDP was the third fastest growing among the 10 largest GDPs. The broader U.S. economy ranked fifth. If everybody understood that, as we did when we were looking at China 25 years ago or India 20 years ago, it would really help. There’s all this growth, you create funds, you go after it, you allocate capital to grow. So it’s always about capital flow. You make money by investing where the growth is. So it’s not only that this is an economic force that helps the economy but that you, the person reading this message, can benefit from it. Kind of the capitalist pitch almost. Well you know, I’m a believer that capitalism works 92.5% of the time. If capital is flowing properly, you can grow an economy which benefits everybody. And you can help the most productive cohorts become wealth creators. We have a youthful Latino cohort. They’re very entrepreneurial. They’re very productive. So let’s feed capital to them and that will grow the economy for the next 20 years or so. You mentioned that the U.S. economy needs Latinos for demographic reasons too. Can you elaborate on that? If you think about it, the highest periods of GDP growth in our economy in modern times were during two presidential terms—Ronald Reagan’s and Bill Clinton’s. We had 16 years, basically of 3.5% GDP growth. We found the single most explanatory variable in terms of GDP growth was not the unemployment rate or some of the things that you hear Fed chairs talk about. It is basically the labor force growth rate. If you look at it. It’s really logical. GDP is a function of outputs of goods and services that workers produce. If you’re not increasing the numbers of workers, your outputs of your goods and services are flat. Both the Baby Boomer cohort and the Gen Xers that were such a disproportionate share of our economy didn’t replace themselves with high birth rates. And they aren’t running as many businesses anymore. So now, we have a natural phenomenon that’s happening, a youthful cohort called the Latino cohort. So the future success of our economy and the success of the Latino cohort are intertwined. If this part of our economy doesn’t grow, the whole economy is not going to grow. You recently started a venture firm to feed capital to Latino entrepreneurs. What was the motivation behind targeting that demographic? Latinos are creating 50% of all employer-based companies. But I wanted to look and see how well these Latino firms were doing. They’re doing well in terms of growth—to a point. Once you get to be about $1 million in revenue, then you’re really accelerating, you need capital. And, there’s no capital availability. We had Bain & Company do a study and we found that less than 1% of all invested capital by private equity and VCs was flowing into this cohort. I decided rather than continue to try to explain to people that it’s a problem and an opportunity, we’re going to create a prototype called L’Attitude Ventures, in order to show people there’s a lot of companies out there that need capital, and that can create growth. We’ll show you how you should do it. A lot of the leadership of many companies are well intentioned, and they give a lot of good speeches about ESG and diversity and inclusion. But sometimes people don’t know quite how to do it. We are creating the prototype so that people can see and say: “oh, okay. We can start flowing capital like L’Attitude Ventures does.” Why do you think a mismatch exists if these Latino-owned firms have so much potential and there’s money out there looking for places to invest? These firms collect capital, and then put it to work, but they put it to work in the same places as they did in the ’80s and the ’90s. So the same structures have only gotten bigger, but they keep on investing in the same way. And they’re not looking in these other places to grow. A corollary would be—people talk about talent, where do I find talent? Do I keep on going to the same universities and the same places where you used to hire people? The answer is, you start looking in other places, because there’s talent almost everywhere. You really need to start thinking differently in the 21st century. I think a lot of Americans have been taught that this is a zero sum game: If this younger Latino cohort gains, then some other group is losing, and they were taught to fear this. Do you think there’s a way to reverse those perceptions? I think the more we’re educated through news media, through entertainment media, people will learn. We’ve seen a shift in perceptions. A decade ago, two thirds of Americans had negative perceptions of Latinos. Today, two thirds have positive perceptions. What we found was that if you had a neighbor, or if you work with somebody who is Latino, your perceptions were a lot different than if you never did and your perceptions came from entertainment media. So the more we provide data and information, the more people will learn. Which is why I co founded L’Attitude. We’re creating a platform where we invite in what I would call resource allocators of the country. CEOs, public leaders, venture capital funds and private equity funds. So you create that new conversation. You create that new set of data, and you share it and people talk about it and understand how they benefit from it. Now you’ll start seeing changes in boards and changes in senior leadership. For example, Target, which just appointed their third Latina to the board (PepsiCo COO Grace Puma). If you look at their growth in the company, a very high percentage of net sales growth is tied to the Latina mom. So they need people on their boards and in their senior management to help understand that cohort, just like they did the Anglo mom in the ’50s and ’60s, as this country’s demographics looked dramatically different than they do today. Speaking of boards, some states like California have mandated that companies have a certain number of women on their boards. Do you think that mandating a certain number of Latino executives on boards would be an effective policy? Well, I’m not a big believer in mandates, because I like how markets work. So one of the things that I like to do is look at structural reasons why things aren’t happening. What do I mean by that? If capital is flowing, there’s going to be a lot of growth. It will be a natural phenomenon that Latinos are going to be starting businesses more and more frequently and grow to be larger sizes. People are going to see Latinos as entrepreneurs. Elon Musk or Mark Zuckerberg were getting capital even pre-revenue from people that say we don’t invest in startups. Name a Latina that has been able to do that. You’ve worked abroad, in Australia and in Europe as well. Do you think the perception of immigrants is different there? Or is it difficult everywhere if you’re not the majority? Life is the same around the world. When I went to Australia, that first day, on the front page of one of the financial newspapers there was a caricature of me, the new Telstra CEO. It was a Mexican on a burro with a sombrero. That was different. They’d never had anybody like me there. Was that discouraging to you? Actually, those kinds of things charged me up. Because that said that people don’t understand who this cohort was. They found out that their perception was wrong. We were dynamic, we dramatically transformed the company. Rather than being discouraged, you become charged up because you want to help people understand. When I first started in business, I knew I wanted to be the CEO. I graduated from the University of Wyoming. Not Harvard, not Stanford, not any of the elite colleges. So I knew I had to be five times better or 10 times better than the next person to me. But I didn’t carry that as a chip on my shoulder. I carried it as a challenge that said, “Okay, those are the rules of the game.” Once you understand the rules of the game, you play by the rules. If you have to score 10 more goals to be considered a winner. I’ll do it. (For coverage of the future of work, visit TIME.com/charter and sign up for the free Charter newsletter.).....»»

Category: topSource: timeSep 25th, 2022

Forget ‘Quiet Quitting.’ Here’s How to Actually Set Boundaries at Work

How to set boundaries at work before getting to the point of disengaging completely. The idea of quiet quitting has been getting a lot of attention on social media recently, and could be more widespread than you think—around half of American workers are quiet quitters, according to a recent survey by Gallup. These employees are embracing the idea of no longer going above and beyond at work, in many cases in response to feeling overworked. Proponents have commandeered the phrase “act your wage” to encourage workers to do just what they are paid to in an attempt at setting boundaries at work. Company executives and some careers experts warn that checking out at work could have serious long-term consequences for employees’ careers, as well as their employers. [time-brightcove not-tgx=”true”] Anita Williams Woolley, an associate professor of organizational behavior and theory at Carnegie Mellon University, encourages workers to take a more active role in improving their work lives, rather than a passive one. “If you’re really upset about something, you can often overestimate how unsolvable it is,” she says. “I don’t think you need to quiet quit to get out of a situation.” Here are ways Wooolley, and other experts, suggest setting boundaries at work, before getting to the point of disengaging completely. Be vocal about what’s not working and what is Employees that check out at work typically make the decision to switch their pace quietly, suggesting they will not directly communicate with their employer about their decision. The most simple step you can take to setting boundaries at work is to be anything but quiet. Speaking to your manager about what isn’t working and what your personal goals are can make all the difference, says Jim Harter, Chief Scientist for Gallup’s workplace management practice. Try having those meaningful conversations often to set up a system of accountability, says Harter. “That builds some equity into the culture. That feels good for you, your well-being and it’s good for the company.” If you are dissatisfied with the work you are expected to do for what you earn, it may be time for a conversation about your salary, too. Mary Nice, a career and workplace consultant, says having a conversation with your manager, advocating for higher pay by clearly articulating your points for why you deserve a raise could be very constructive. “Conversations about money are going to be uncomfortable, but they are also completely expected and deserved,” she says. Take time off For many, requesting time off can seem daunting, even when paid time off (PTO) days are written into your work contract. In 2020, Americans left an average of 33% of paid time off days unused, according to the U.S. Travel Association. Not taking a necessary break from work can lead to burnout, chronic stress and other health problems. “It’s tough to gain perspective when we’re in our normal routines,” says career advisor Nice. “PTO allows us the chance to break our routine and get through our stress cycle.” Prioritizing yourself means rightfully requesting your days off (with advanced notice to your manager) so that you can rest and come back to work recharged. Remember: the days are there to be used! Limit notifications outside of work hours The last several years of remote work has blurred the lines of the usual work-life balance, leading to a build up of resentment with every after-hours email or Slack message. Ana Goehner, a career strategist with nearly five years experience in human resources, says limiting your availability outside of work hours can make those lines much clearer. But the key is communicating with your team on what those boundaries will look like, says Goehner. “Managers are not mind readers, so you need to communicate your availability.” If you plan on setting your phone on ‘Do Not Disturb’ or are limiting your time-frame of answering emails after a certain hour, be sure to clearly relay that to the rest of your team to manage their expectations of you. Prioritize your mental and physical health The state of your mental and physical health is core to your well-being and how you show up at work. Educators are among those struggling most with this balance. K-12 workers and those who work at colleges and universities surveyed in February were found to be suffering the highest levels of burnout in the U.S. compared to other industries, according to a recently published Gallup poll. In the journalism industry, burnout is becoming an increasing problem and the pandemic has led many journalists to leave due to an increase of stress and anxiety. (The Bureau of Labor Statistics estimates journalism jobs will decline by 4.8% by 2030). There are some small steps workers can take to help alleviate stress. Leslie Rangel, an anchor at FOX 7 Austin, also known as “The News Yogi,” is combating burnout of the news industry by leading over 500 journalists in yoga and meditation sessions to help manage their stress levels. Rangel believes taking steps in your personal life like yoga and thought work can drastically impact your state of mind during work hours. “There’s a common misconception that yoga means you have to roll out a mat and do this whole thing, but in reality yoga can be as simple as intentional breathing,” says Rangel. “Sprinkle that throughout your day.” Try to find meaning in your work One of the main factors contributing to burnout at work is increased mental distance or negativity related to one’s job, according to the World Health Organization. Feeling passion, purpose and variety in the work you do can make a great impact. “It’s meaningful when you feel like you’re doing something that has an impact, that you care about, or that feels important to the company,” says Carnegie Mellon’s Woolley. That mindset can be difficult to embrace when your work feels mundane, but Woolley argues that even the simple task of filing cabinets “plays a role in a company’s bigger outcome.” Nice says that finding meaning at work can go beyond your contributions for a company. Factors that improve your life, like making connections with coworkers, securing financial stability or gains, or getting access to healthcare, can be motivators too, she says. So before “quiet quitting” your job, or flat out quitting, try making your current workplace work for you and your goals. “If you haven’t set boundaries and communicated what you need, when you go to another job you’re just taking all of that lack of clarity into a different setting,” says Rangel. “You can get rid of the stressor, but not get rid of the stress.”.....»»

Category: topSource: timeSep 9th, 2022

The rise and fall of Elizabeth Holmes, the former Theranos CEO found guilty of wire fraud and conspiracy, whose sentencing has now been delayed

Elizabeth Holmes' sentencing hearing was originally slated for September 26. On Monday it was delayed, without a reason provided, until October 17. Elizabeth Holmes leaves after a hearing at a federal court in San Jose, California, on July 17, 2019.Reuters/Stephen Lam Elizabeth Holmes dropped out of Stanford at 19 to start Theranos and grew its value to $9 billion. Later, technology flaws were exposed, resulting in a months-long trial where Holmes was found guilty on three counts of wire fraud and one count of conspiracy. Now, Holmes' sentencing hearing has been delayed. Visit Business Insider's homepage for more stories. In 2014, blood-testing startup Theranos and its founder, Elizabeth Holmes, were on top of the world.Back then, Theranos was a revolutionary idea thought up by a woman hailed as a genius who styled herself as a female Steve Jobs. Holmes was the world's youngest female self-made billionaire, and Theranos was one of Silicon Valley's unicorn startups, valued at an estimated $9 billion. But then it all came crashing down.The shortcomings and inaccuracies of Theranos's technology were exposed, along with the role Holmes played in covering it all up. Holmes was ousted as CEO and charged with "massive fraud," and the company was forced to close its labs and testing centers, ultimately shuttering operations altogether.As she awaited trial, Holmes reportedly found the time to get engaged — and married — to a hotel heir named Billy Evans.Holmes has since been convicted of fraud in federal court. In January, jurors found Holmes guilty on three counts of wire fraud and one count of conspiracy to commit wire fraud. They found her not guilty on four other counts and failed to reach a unanimous verdict on the remaining three counts against her.On Thursday, Holmes' former romantic and business partner Ramesh "Sunny" Balwani, was also convicted of fraud. He was found guilty on all 12 fraud-related charges.Since her conviction, Holmes has become the subject of a Hulu limited series, "The Dropout," based on the ABC News podcast of the same name. The show stars Amanda Seyfried as Holmes as it chronicles the meteoric rise and fall of Theranos and Holmes herself.Holmes has asked the presiding judge in her case to overturn her conviction. In a filing on May 27, Holmes' attorneys argued evidence was "insufficient to sustain the convictions.""Because no rational juror could have found the elements of wire fraud and conspiracy to commit wire fraud beyond a reasonable doubt on this record, the Court should grant Ms. Holmes' motion for judgment of acquittal," they wrote. The judge has set a date to consider Holmes' appeal in July.In the meantime, Holmes' sentencing hearing has been delayed. On Monday, it was moved from its originally scheduled date, September 26, to October 17, though no reason was provided for the change.Here's how Holmes went from precocious child, to ambitious Stanford dropout, to an embattled startup founder convicted of fraud: Elizabeth Holmes was born on February 3, 1984 in Washington, D.C. Her mom, Noel, was a Congressional committee staffer, and her dad, Christian Holmes, worked for Enron before moving to government agencies like USAID.@eholmes2003/TwitterSource: Elizabeth Holmes/Twitter, CNN, Vanity FairHolmes' family moved when she was young, from Washington, D.C. to Houston.Washington, D.C.Getty ImagesSource: FortuneWhen she was 7, Holmes tried to invent her own time machine, filling up an entire notebook with detailed engineering drawings. At the age of 9, Holmes told relatives she wanted to be a billionaire when she grew up. Her relatives described her as saying it with the "utmost seriousness and determination."Theranos CEO Elizabeth Holmes.REUTERS/Carlo AllegriSource: CBS News, Bad Blood: Secrets and Lies in a Silicon Valley StartupHolmes had an "intense competitive streak" from a young age. She often played Monopoly with her younger brother and cousin, and she would insist on playing until the end, collecting the houses and hotels until she won. If Holmes was losing, she would often storm off. More than once, she ran directly through a screen on the door.Elizabeth Holmes, CEO of Theranos, attends a panel discussion during the Clinton Global Initiative's annual meeting in New York, September 29, 2015.REUTERS/Brendan McDermidSource: Bad Blood: Secrets and Lies in a Silicon Valley StartupIt was during high school that Holmes developed her work ethic, often staying up late to study. She quickly became a straight-A student, and even started her own business: she sold C++ compilers, a type of software that translates computer code, to Chinese schools.Tyrone Siu/ReutersSource: Fortune, Bad Blood: Secrets and Lies in a Silicon Valley StartupHolmes started taking Mandarin lessons, and part-way through high school, talked her way into being accepted by Stanford University’s summer program, which culminated in a trip to Beijing.Yepoka Yeebo / Business InsiderSource: Bad Blood: Secrets and Lies in a Silicon Valley StartupInspired by her great-great-grandfather Christian Holmes, a surgeon, Holmes decided she wanted to go into medicine. But she discovered early on that she was terrified of needles. Later, she said this influenced her to start Theranos.Hollis Johnson/Business InsiderSource: San Francisco Business TimesHolmes went to Stanford to study chemical engineering. When she was a freshman, she became a "president's scholar," an honor which came with a $3,000 stipend to go toward a research project.STANFORD, CA - MAY 22: People ride bikes past Hoover Tower on the Stanford University campus on May 22, 2014 in Stanford, California. According to the Academic Ranking of World Universities by China's Shanghai Jiao Tong University, Stanford University ranked second behind Harvard University as the top universities in the world. UC Berkeley ranked third. (Photo by Justin Sullivan/Getty Images)Justin Sullivan/GettySource: FortuneHolmes spent the summer after her freshman year interning at the Genome Institute in Singapore. She got the job partly because she spoke Mandarin.An office worker walks along the Singapore River front during the lunch hour.Wong Maye-E/APSource: FortuneAs a sophomore, Holmes went to one of her professors, Channing Robertson, and said: "Let's start a company." With his blessing, she founded Real-Time Cures, later changing the company's name to Theranos. Thanks to a typo, early employees’ paychecks actually said "Real-Time Curses."Getty ImagesSource: Bad Blood: Secrets and Lies in a Silicon Valley StartupHolmes soon filed a patent application for a "medical device for analyte monitoring and drug delivery," a wearable device that would administer medication, monitor patients' blood, and adjust the dosage as needed.Reuters/Brian SnyderSource: Fortune, US Patent OfficeBy the next semester, Holmes had dropped out of Stanford altogether, and was working on Theranos in the basement of a college house.Jeff Chiu/APSource: Wall Street JournalTheranos's business model was based around the idea that it could run blood tests, using proprietary technology that required only a finger pinprick and a small amount of blood. Holmes said the tests would be able to detect medical conditions like cancer and high cholesterol.Theranos Chairman, CEO and Founder Elizabeth Holmes (L) and TechCrunch Writer and Moderator Jonathan Shieber speak onstage at TechCrunch Disrupt at Pier 48 on September 8, 2014 in San Francisco, CaliforniaSteve Jennings/Getty ImagesSource: Wall Street JournalHolmes started raising money for Theranos from prominent investors like Oracle founder Larry Ellison and Tim Draper, the father of a childhood friend and the founder of prominent VC firm Draper Fisher Jurvetson. Theranos raised more than $700 million, and Draper has continued to defend Holmes.Investor Tim Draper (right).CNBCSource: SEC, CrunchbaseHolmes took investors' money on the condition that she wouldn't have to reveal how Theranos' technology worked. Plus, she would have final say over everything having to do with the company.JP Yim/GettySource: Vanity FairThat obsession with secrecy extended to every aspect of Theranos. For the first decade Holmes spent building her company, Theranos operated in stealth mode. She even took three former Theranos employees to court, claiming they had misused Theranos trade secrets.Kimberly White/GettySource: San Francisco Business TimesHolmes' attitude toward secrecy and running a company was borrowed from a Silicon Valley hero of hers: former Apple CEO Steve Jobs. Holmes started dressing in black turtlenecks like Jobs, decorated her office with his favorite furniture, and like Jobs, never took vacations.Steve Jobs.Justin Sullivan/Getty ImagesSource: Vanity FairEven Holmes's uncharacteristically deep voice may have been part of a carefully crafted image intended to help her fit in in the male-dominated business world. In ABC's podcast on Holmes called "The Dropout," former Theranos employees said the CEO sometimes "fell out of character," particularly after drinking, and would speak in a higher voice.Former U.S. President Bill Clinton and Elizabeth Holmes, CEO of Theranos, during the Clinton Global Initiative's annual meeting in New York.Lucas Jackson/ReutersSource: Bad Blood: Secrets and Lies in a Silicon Valley Startup, The CutHolmes was a demanding boss, and wanted her employees to work as hard as she did. She had her assistants track when employees arrived and left each day. To encourage people to work longer hours, she started having dinner catered to the office around 8 p.m. each night.TheranosSource: Bad Blood: Secrets and Lies in a Silicon Valley StartupMore behind-the-scenes footage of what life was like at Theranos was revealed in leaked videos obtained by the team behind the HBO documentary "The Inventor: Out for Blood in Silicon Valley." The more than 100 hours of footage showed Holmes walking around the office, scenes from company parties, speeches from Holmes and Balwani, and Holmes dancing to "U Can't Touch This" by MC Hammer.Theranos founder Elizabeth Holmes at the company's headquarters.Courtesy HBOSource: Business InsiderShortly after Holmes dropped out of Stanford at age 19, she began dating Theranos president and COO Sunny Balwani, who was 20 years her senior. The two met during Holmes' third year in Stanford’s summer Mandarin program, the summer before she went to college. She was bullied by some of the other students, and Balwani had come to her aid.Footage of Sunny Balwani presenting."60 Minutes"Source: Bad Blood: Secrets and Lies in a Silicon Valley StartupBalwani became Holmes' No. 2 at Theranos despite having little experience. He was said to be a bully, and often tracked his employees' whereabouts. Holmes and Balwani eventually broke up in spring 2016 when Holmes pushed him out of the company.Sunny Balwani pictured in January 2019.Justin Sullivan/Getty ImagesSource: Bad Blood: Secrets and Lies in a Silicon Valley StartupIn 2008, the Theranos board decided to remove Holmes as CEO in favor of someone more experienced. But over the course of a two-hour meeting, Holmes convinced them to let her stay in charge of her company.Jamie McCarthy / GettySource: Bad Blood: Secrets and Lies in a Silicon Valley StartupAs Theranos started to rake in millions of funding, Holmes became the subject of media attention and acclaim in the tech world. She graced the covers of Fortune and Forbes, gave a TED Talk, and spoke on panels with Bill Clinton and Alibaba's Jack Ma.Elizabeth Holmes with former President Bill Clinton, left, and Alibaba cofounder Jack Ma.Andrew Burton/Getty ImagesSource: Vanity FairTheranos quickly began securing outside partnerships. Capital Blue Cross and Cleveland Clinic signed on to offer Theranos tests to their patients, and Walgreens made a deal to open Theranos testing centers in their stores. Theranos also formed a secret partnership with Safeway worth $350 million.A Theranos testing center inside a Walgreens.Melia Robinson/Business InsiderSource: Wired, Business InsiderIn 2011, Holmes hired her younger brother, Christian, to work at Theranos, although he didn’t have a medical or science background. Christian Holmes spent his early days at Theranos reading about sports online and recruiting his Duke University fraternity brothers to join the company. People dubbed Holmes and his crew the "Frat Pack" and "Therabros."Elizabeth Holmes and her brother, Christian.Andrew Harrer/Bloomberg via Getty ImagesSource: Bad Blood: Secrets and Lies in a Silicon Valley StartupAt one point, Holmes was the world's youngest self-made female billionaire with a net worth of around $4.5 billion.Kimberly White/Getty Images for Breakthrough PrizeSource: ForbesHolmes was obsessed with security at Theranos. She asked anyone who visited the company’s headquarters to sign non-disclosure agreements before being allowed in the building, and had security guards escort visitors everywhere — even to the bathroom.Michael Dalder/Reuters Holmes hired bodyguards to drive her around in a black Audi sedan. Her nickname was "Eagle One." The windows in her office had bulletproof glass.Source: Bad Blood: Secrets and Lies in a Silicon Valley StartupAround the same time, questions were being raised about Theranos' technology. Ian Gibbons — chief scientist at Theranos and one of the company's first hires — warned Holmes that the tests weren't ready for the public to take, and that there were inaccuracies in the technology. Outside scientists began voicing their concerns about Theranos, too.Melia Robinson/Tech InsiderSource: Vanity Fair, Business InsiderBy August 2015, the FDA began investigating Theranos, and regulators from the government body that oversees laboratories found "major inaccuracies" in the testing Theranos was doing on patients.Mike Segar/ReutersSource: Vanity FairBy October 2015, Wall Street Journal reporter John Carreyrou published his investigation into Theranos's struggles with its technology. Carreyrou's reporting sparked the beginning of the company's downward spiral.Wall Street Journal reporter John Carreyrou.CBS "60 Minutes"Source: Wall Street JournalCarreyrou found that Theranos' blood-testing machine, named Edison, couldn't give accurate results, so Theranos was running its samples through the same machines used by traditional blood-testing companies.Carlos Osorio/APSource: Wall Street JournalHolmes appeared on CNBC's "Mad Money" shortly after the WSJ published its story to defend herself and Theranos. "This is what happens when you work to change things, and first they think you're crazy, then they fight you, and then all of a sudden you change the world," Holmes said.CNBC/YouTubeSource: CNBCBy 2016, the FDA, Centers for Medicare & Medicaid Services, and SEC were all looking into Theranos.GettySource: Wall Street Journal, WiredIn July 2016, Holmes was banned from the lab-testing industry for two years. By October, Theranos had shut down its lab operations and wellness centers.Mike Blake/ReutersSource: Business InsiderIn March 2018, Theranos, Holmes, and Balwani were charged with "massive fraud" by the SEC. Holmes agreed to give up financial and voting control of the company, pay a $500,000 fine, and return 18.9 million shares of Theranos stock. She also isn't allowed to be the director or officer of a publicly traded company for 10 years.Jeff Chiu/APSource: Business InsiderDespite the charges, Holmes was allowed to stay on as CEO of Theranos, since it's a private company. The company had been hanging on by a thread, and Holmes wrote to investors asking for more money to save Theranos. "In light of where we are, this is no easy ask," Holmes wrote.Kimberly White/Getty Images for FortuneSource: Business InsiderIn Theranos' final days, Holmes reportedly got a Siberian husky puppy named Balto that she brought into the office. However, the dog wasn't potty trained, and would go to the bathroom inside the company's office and during meetings.A Siberian husky (not Holmes' dog).Kateryna Orlova/ShutterstockSource: Vanity FairIn June 2018, Theranos announced that Holmes was stepping down as CEO. On the same day, the Department of Justice announced that a federal grand jury had charged Holmes, along with Balwani, with nine counts of wire fraud and two counts of conspiracy to commit wire fraud.Elizabeth Holmes, founder and CEO of Theranos, speaks at the Wall Street Journal Digital Live (WSJDLive) conference at the Montage hotel in Laguna Beach, California, October 21, 2015.Mike Blake/ReutersSource: Business Insider, CNBCTheranos sent an email to shareholders in September 2018 announcing that the company was shutting down. Theranos reportedly said it planned to spend the next few months repaying creditors with its remaining resources.Mike Blake/ReutersSource: Wall Street JournalAround the time Theranos' time was coming to an end, Holmes made her first public appearance alongside William "Billy" Evans, a 27-year-old heir to a hospitality property management company in California. The two reportedly first met in 2017, and were seen together in 2018 at Burning Man, the art festival in the Nevada desert.Jim Rankin/Toronto Star via Getty ImagesSource: Daily MailHolmes is said to wear Evans' MIT "signet ring" on a chain around her neck, and the couple reportedly posts photos "professing their love for each other" on a private Instagram account. Evans' parents are reportedly "flabbergasted" at their son's decision to marry Holmes.—Nick Bilton (@nickbilton) February 21, 2019Source: Vanity Fair, New York PostIt's unclear where Holmes and Evans currently reside, but they were previously living in a $5,000-a-month apartment in San Francisco until April 2019. The apartment was located just a few blocks from one of the city's top tourist attractions, the famously crooked block of Lombard Street.Lombard Place Apartments, where Holmes used to live.Rent SF NowSource: Business InsiderIt was later reported that Holmes and Evans got engaged in early 2019, then married in June in a secretive wedding ceremony. Former Theranos employees were reportedly not invited to the wedding, according to Vanity Fair.Gilbert Carrasquillo/Getty Images; Samantha Lee/Business InsiderSource: Vanity Fair, New York PostHolmes' and Balwani's cases have since been separated.Justin Silva/Getty, Stephen Lam/Reuters, Business InsiderSource: Department of Justice, Business InsiderBesides the criminal case, Holmes was also involved in a number of civil lawsuits, including one in Arizona brought by former Theranos patients over inaccurate blood tests. The lawyers representing her in the Arizona case said in late 2019 they hadn't been paid over a year and asked to be removed from Holmes' legal team.Former Theranos CEO Elizabeth Holmes leaves after a hearing at a federal court.Reuters/Stephen LamSource: Business InsiderHolmes' lawyers in the federal case had tried to get the government's entire case thrown out. In February 2020, Holmes caught a break after some of the charges against her were dropped when a judge ruled that some patients didn't suffer financial loss.Brendan McDermid/ReutersSource: Business InsiderAmid the coronavirus outbreak, Holmes' lawyers asked the judge in April 2020 to deem the case "essential" so the defense team could defy lockdown orders and continue to travel and meet face-to-face. The judge said he was "taken aback" by the defense's pleas to violate lockdown.Reuters/Robert GalbraithSource: Business Insider It soon become clear that the pandemic — and the health risks associated with assembling a trial in one — would make the July trial date unrealistic. Through hearings held on Zoom, the presiding judge initially pushed the trial back to October 2020 and later postponed it further to March 2021.Passengers wear masks as they walk through LAX airport.Reuters/Lucy NicholsonSource: Business Insider In March 2021, Holmes requested another delay to the trial because she was pregnant. She asked to push back the trial to August 31, and her request was granted. Holmes reportedly gave birth to the child in July.Nhat V. Meyer/MediaNews Group/Mercury News via Getty ImagesSource: Business Insider, CNBCHeading into the trial, Holmes felt "wronged, like Salem-witch-trial wronged," says a person who used to work with her closely.Holmes, right, leaving the Robert F. Peckham Federal Building in San Jose, California with her defense team on May 4, 2021.Nhat V. Meyer/MediaNews Group/Mercury News via Getty ImagesSource: Business InsiderThe trial kicked off in September. In opening statements, prosecutors argued that, "Out of time and out of money, Elizabeth Holmes decided to lie." Meanwhile, the defense argued that although Theranos ultimately crumbled, "Failure is not a crime. Trying your hardest and coming up short is not a crime."Theranos founder Elizabeth Holmes arrives at the Robert F. Peckham Federal Building with her defense team on August 31, 2021 in San Jose, California.Ethan Swope/Getty ImagesSource: Business Insider The list of possible witnesses for the trial named roughly 200 people, including the likes of Rupert Murdoch, Henry Kissinger, James Mattis, and Holmes herself.Theranos founder Elizabeth Holmes leaves the Robert F. Peckham U.S. Courthouse with her mother, Noel Holmes, during her trial.Brittany Hosea-Small/ReutersSource: Business InsiderIn the end, the trial featured testimony from just over 30 witnesses.Vicki Behringer/ReutersSource: Business InsiderOver the course of 11 weeks, prosecutors called 29 witnesses to testify — including former Theranos employees, investors, patients, and doctors — before resting their case in November.Vicki BehringerSource: Business Insider The defense then began making its case, calling just three witnesses, including Holmes herself.Jane Tyska/Digital First Media/The Mercury News via Getty ImagesSource: Business InsiderOn the stand, Holmes said Balwani emotionally and sexually abused her during their relationship.Former Theranos COO Ramesh "Sunny' Balwani leaves the Robert F. Peckham U.S. Federal Court on June 28, 2019 in San Jose, California.Justin Sullivan/Getty ImagesSource: Business InsiderHolmes also admitted that she added some pharmaceutical companies' logos to Theranos' reports without authorization. Investors previously said they took some reassurance in those reports because, based on the logos, they thought major pharmaceutical companies had validated Theranos' technology. Holmes said she added the logos to convey that work was done in partnership with those companies, but in hindsight she wishes she had "done it differently."Justin Sullivan/Getty ImagesSource: Business InsiderHolmes also acknowledged on the stand that she hid Theranos' use of modified commercial devices from investors. She said she did this because company counsel told her that alterations the company made to the machines were trade secrets and needed to be protected as such.Brittany Hosea-Small/ReutersSource: Business InsiderHolmes spent seven days on the stand before the defense rested its case in early December.Theranos founder Elizabeth Holmes arrives to attend her fraud trial at federal court in San Jose, California, U.S., December 16, 2021.Peter DaSilva/ReutersSource: Business InsiderIn closing arguments, prosecutors argued that Holmes "chose fraud over business failure" while the defense argued she was "building a business, not a criminal enterprise."Elizabeth Holmes walks into federal court in San Jose, Calif., Friday, Dec. 17, 2021.Nic Coury/Associated PressSource: Business InsiderAfter 15 weeks of trial, Holmes' case headed to a jury of eight men and four women on December 17.Elizabeth Holmes, founder and former CEO of blood testing and life sciences company Theranos, leaves the courthouse with her husband Billy Evans after the first day of her fraud trial in San Jose, California on September 8, 2021.Nick Otto/AFP/Getty ImagesSource: Business InsiderJurors deliberated for a total of seven days over the next few weeks before telling the court on January 3 that they were deadlocked on three of the 11 charges against Holmes. The judge read off some jury instructions to the group in court before instructing them to go back and deliberate further.Kate Munsch/ReutersSource: Business InsiderHours later, the jury returned a mixed verdict for Holmes, finding her guilty on one count of conspiracy to defraud investors and three counts of wire fraud. They found her not guilty on four other counts and failed to reach a verdict on the remaining three counts.Justin Sullivan/Getty ImagesSource: Business InsiderThe counts Holmes was found guilty of were all related to investments; she wasn't convicted on any of the charges involving patients who received inaccurate test results.David Odisho/Getty ImagesSource: Business InsiderHolmes now faces the possibility of decades in prison. Each count carries a maximum 20-year prison sentence, a $250,000 fine, and a requirement to pay victims restitution.AP Photo/Nic Coury, FileSource: Business Insider Legal experts told Insider it's unlikely Holmes will get 20 years at sentencing, but she probably won't get off without serving any time either.Justin Sullivan/Getty ImagesSource: Business InsiderHolmes was not taken into custody following the verdict and will remain free until her sentencing on a $500,000 bond secured by property.Peter DaSilva/ReutersSource: Business InsiderSince the conviction, Holmes and Theranos have been the focus of a Hulu limited series, "The Dropout," based on the ABC News podcast of the same name.Amanda Seyfried in "The Dropout" (left); Elizabeth Holmes (right)Beth Dubber/Hulu; Steve Jennings/Getty Images for TechCrunchSource: Business InsiderHolmes is played by Amanda Seyfried in the dramatized series, which asks the question, "How did the world's youngest self-made female billionaire lose it all in the blink of an eye?"Amanda Seyfried in "The Dropout."HuluSource: HuluThe show premiered March 3 and also stars Naveen Andrews as Balwani, Holmes' right-hand man at Theranos. Balwani's fraud trial began in March.Beth Dubber/Hulu; Michael Short/Bloomberg via Getty ImagesSource: Business Insider Now, Holmes is pleading with a judge to toss her conviction.APSource: Business Insider In a 24-page filing on May 27, Holmes' attorneys argued for her acquittal, saying the evidence was "insufficient to sustain the convictions."Nick Otto/AFP via Getty ImagesSource: Business InsiderThey wrote, "Because no rational juror could have found the elements of wire fraud and conspiracy to commit wire fraud beyond a reasonable doubt on this record, the Court should grant Ms. Holmes' motion for judgment of acquittal."David Odisho/Getty ImagesSource: Business Insider"Even if Ms. Holmes committed wire fraud against an investor (she did not) and even if Mr. Balwani committed wire fraud against an investor, that does not prove a conspiratorial agreement between them, nor does it prove that Ms. Holmes willfully joined any agreement," the attorneys continued in the filing.Justin Sullivan/Getty ImagesSource: Business InsiderSuch appeals are common in cases like these, and legal experts expected Holmes would try to get her conviction overturned.Dai Sugano/MediaNews Group/The Mercury News via Getty ImagesSource: Business InsiderThe judge in Holmes' case set a hearing for July to weigh her request.David Odisho/Getty ImagesSource: Business Insider Meanwhile, Balwani was convicted on 12 fraud-related charges. The jury came back with a conviction after deliberating for five days.Former Theranos COO Ramesh "Sunny" Balwani goes through a security checkpoint as he arrives at the Robert F. Peckham U.S. Federal Court on March 10, 2022 in San Jose, California.Justin Sullivan/Getty ImagesSource: Business InsiderBoth of them now await sentencing. Balwani's sentencing hearing is set for November 15. Holmes' sentencing date was originally slated for September 26, but it has since been delayed to October 17. No reason was provided for the delay.Chris Ryan/GettySource: Law360Paige Leskin and Maya Kosoff contributed to earlier versions of this story.Read the original article on Business Insider.....»»

Category: topSource: businessinsiderJul 13th, 2022

We"ve got nearly 50 pitch decks that helped fintechs disrupting trading, investing, and banking raise millions in funding

Looking for examples of real fintech pitch decks? Check out pitch decks that Qolo, Lance, and other startups used to raise money from VCs. Check out these pitch decks for examples of fintech founders sold their vision.Yulia Reznikov/Getty Images Insider has been tracking the next wave of hot new startups that are blending finance and tech.  Check out these pitch decks to see how fintech founders sold their vision. See more stories on Insider's business page. Fintech funding has been on a tear.In 2021, fintech funding hit a record $132 billion globally, according to CB Insights, more than double 2020's mark.Insider has been tracking the next wave of hot new startups that are blending finance and tech. Check out these pitch decks to see how fintech founders are selling their vision and nabbing big bucks in the process. You'll see new financial tech geared at freelancers, fresh twists on digital banking, and innovation aimed at streamlining customer onboarding. New twists on digital bankingZach Bruhnke, cofounder and CEO of HMBradleyHMBradleyConsumers are getting used to the idea of branch-less banking, a trend that startup digital-only banks like Chime, N26, and Varo have benefited from. The majority of these fintechs target those who are underbanked, and rely on usage of their debit cards to make money off interchange. But fellow startup HMBradley has a different business model. "Our thesis going in was that we don't swipe our debit cards all that often, and we don't think the customer base that we're focusing on does either," Zach Bruhnke, cofounder and CEO of HMBradley, told Insider. "A lot of our customer base uses credit cards on a daily basis."Instead, the startup is aiming to build clientele with stable deposits. As a result, the bank is offering interest-rate tiers depending on how much a customer saves of their direct deposit.Notably, the rate tiers are dependent on the percentage of savings, not the net amount. "We'll pay you more when you save more of what comes in," Bruhnke said. "We didn't want to segment customers by how much money they had. So it was always going to be about a percentage of income. That was really important to us."Check out the 14-page pitch deck fintech HMBradley, a neobank offering interest rates as high as 3%, used to raise an $18.25 million Series APersonal finance is only a text awayYinon Ravid, the chief executive and cofounder of Albert.AlbertThe COVID-19 pandemic has underscored the growing preference of mobile banking as customers get comfortable managing their finances online.The financial app Albert has seen a similar jump in activity. Currently counting more than six million members, deposits in Albert's savings offering doubled from the start of the pandemic in March 2020 to May of this year, from $350 million to $700 million, according to new numbers released by the company. Founded in 2015, Albert offers automated budgeting and savings tools alongside guided investment portfolios. It's looked to differentiate itself through personalized features, like the ability for customers to text human financial experts.Budgeting and saving features are free on Albert. But for more tailored financial advice, customers pay a subscription fee that's a pay-what-you-can model, between $4 and $14 a month. And Albert's now banking on a new tool to bring together its investing, savings, and budgeting tools.Fintech Albert used this 10-page pitch deck to raise a $100 million Series C from General Atlantic and CapitalG 'A bank for immigrants'Priyank Singh and Rohit Mittal are the cofounders of Stilt.StiltRohit Mittal remembers the difficulties he faced when he first arrived in the United States a decade ago as a master's student at Columbia University.As an immigrant from India, Mittal had no credit score in the US and had difficulty integrating into the financial system. Mittal even struggled to get approved to rent an apartment and couch-surfed until he found a roommate willing to offer him space in his apartment in the New York neighborhood Morningside Heights.That roommate was Priyank Singh, who would go on to become Mittal's cofounder when the two started Stilt, a financial-technology company designed to address the problems Mittal faced when he arrived in the US.Stilt, which calls itself "a bank for immigrants," does not require a social security number or credit history to access its offerings, including unsecured personal loans.Instead of relying on traditional metrics like a credit score, Stilt uses data such as education and employment to predict an individual's future income stability and cash flow before issuing a loan. Stilt has seen its loan volume grow by 500% in the past 12 months, and the startup has loaned to immigrants from 160 countries since its launch. Here are the 15 slides Stilt, which calls itself 'a bank for immigrants,' used to raise a $14 million Series AAn IRA for alternativesHenry Yoshida is the co-founder and CEO of retirement fintech startup Rocket Dollar.Rocket DollarFintech startup Rocket Dollar, which helps users invest their individual retirement account (IRA) dollars into alternative assets, just raised $8 million for its Series A round, the company announced on Thursday.Park West Asset Management led the round, with participation from investors including Hyphen Capital, which focuses on backing Asian American entrepreneurs, and crypto exchange Kraken's venture arm. Co-founded in 2018 by CEO Henry Yoshida, CTO Rick Dude, and VP of marketing Thomas Young, Rocket Dollar now has over $350 million in assets under management on its platform. Yoshida sold his first startup, a roboadvisor called Honest Dollar, to Goldman Sachs' investment management division for an estimated $20 million.Yoshida told Insider that while ultra-high net worth investors have been investing self-directed retirement account dollars into alternative assets like real estate, private equity, and cryptocurrency, average investors have not historically been able to access the same opportunities to invest IRA dollars in alternative assets through traditional platforms.Here's the 34-page pitch deck a fintech that helps users invest their retirement savings in crypto and real estate assets used to nab $8 millionA trading app for activismAntoine Argouges, CEO and founder of TulipshareTulipshareAn up-and-coming fintech is taking aim at some of the world's largest corporations by empowering retail investors to push for social and environmental change by pooling their shareholder rights.London-based Tulipshare lets individuals in the UK invest as little as one pound in publicly-traded company stocks. The upstart combines individuals' shareholder rights with other like-minded investors to advocate for environmental, social, and corporate governance change at firms like JPMorgan, Apple, and Amazon.The goal is to achieve a higher number of shares to maximize the number of votes that can be submitted at shareholder meetings. Already a regulated broker-dealer in the UK, Tulipshare recently applied for registration as a broker-dealer in the US. "If you ask your friends and family if they've ever voted on shareholder resolutions, the answer will probably be close to zero," CEO and founder Antoine Argouges told Insider. "I started Tulipshare to utilize shareholder rights to bring about positive corporate change that has an impact on people's lives and our planet — what's more powerful than money to change the system we live in?"Check out the 14-page pitch deck from Tulipshare, a trading app that lets users pool their shareholder votes for activism campaignsDigital tools for independent financial advisorsJason Wenk, founder and CEO of AltruistAltruistJason Wenk started his career at Morgan Stanley in investment research over 20 years ago. Now, he's running a company that is hoping to broaden access to financial advice for less-wealthy individuals. The startup raised $50 million in Series B funding led by Insight Partners with participation from investors Vanguard and Venrock. The round brings the Los Angeles-based startup's total funding to just under $67 million.Founded in 2018, Altruist is a digital brokerage built for independent financial advisors, intended to be an "all-in-one" platform that unites custodial functions, portfolio accounting, and a client-facing portal. It allows advisors to open accounts, invest, build models, report, trade (including fractional shares), and bill clients through an interface that can advisors time by eliminating mundane operational tasks.Altruist aims to make personalized financial advice less expensive, more efficient, and more inclusive through the platform, which is designed for registered investment advisors (RIAs), a growing segment of the wealth management industry. Here's the pitch deck for Altruist, a wealth tech challenging custodians Fidelity and Charles Schwab, that raised $50 million from Vanguard and InsightRethinking debt collection Jason Saltzman, founder and CEO of ReliefReliefFor lenders, debt collection is largely automated. But for people who owe money on their credit cards, it can be a confusing and stressful process.  Relief is looking to change that. Its app automates the credit-card debt collection process for users, negotiating with lenders and collectors to settle outstanding balances on their behalf. The fintech just launched and closed a $2 million seed round led by Collaborative Ventures. Relief's fundraising experience was a bit different to most. Its pitch deck, which it shared with one investor via Google Slides, went viral. It set out to raise a $1 million seed round, but ended up doubling that and giving some investors money back to make room for others.Check out a 15-page pitch deck that went viral and helped a credit-card debt collection startup land a $2 million seed roundHelping small banks lendTKCollateralEdgeFor large corporations with a track record of tapping the credit markets, taking out debt is a well-structured and clear process handled by the nation's biggest investment banks and teams of accountants. But smaller, middle-market companies — typically those with annual revenues ranging up to $1 billion — are typically served by regional and community banks that don't always have the capacity to adequately measure the risk of loans or price them competitively. Per the National Center for the Middle Market, 200,000 companies fall into this range, accounting for roughly 33% of US private sector GDP and employment.Dallas-based fintech CollateralEdge works with these banks — typically those with between $1 billion and $50 billion in assets — to help analyze and price slices of commercial and industrial loans that previously might have gone unserved by smaller lenders.On October 20th, CollateralEdge announced a $3.5 million seed round led by Dallas venture fund Perot Jain with participation from Kneeland Youngblood (a founder of the healthcare-focused private-equity firm Pharos Capital) and other individual investors.Here's the 10-page deck CollateralEdge, a fintech streamlining how small banks lend to businesses, used to raise a $3.5 million seed roundA new way to assess creditworthinessPinwheel founders Curtis Lee, Kurt Lin, and Anish Basu.PinwheelGrowing up, Kurt Lin never saw his father get frustrated. A "traditional, stoic figure," Lin said his father immigrated to the United States in the 1970s. Becoming part of the financial system proved even more difficult than assimilating into a new culture.Lin recalled visiting bank after bank with his father as a child, watching as his father's applications for a mortgage were denied due to his lack of credit history. "That was the first time in my life I really saw him crack," Lin told Insider. "The system doesn't work for a lot of people — including my dad," he added. Lin would find a solution to his father's problem years later while working with Anish Basu, and Curtis Lee on an automated health savings account. The trio realized the payroll data integrations they were working on could be the basis of a product that would help lenders work with consumers without strong credit histories."That's when the lightbulb hit," said Lin, Pinwheel's CEO.In 2018, Lin, Basu, and Lee founded Pinwheel, an application-programming interface that shares payroll data to help both fintechs and traditional lenders serve consumers with limited or poor credit, who have historically struggled to access financial products. Here's the 9-page deck that Pinwheel, a fintech helping lenders tap into payroll data to serve consumers with little to no credit, used to raise a $50 million Series BAn alternative auto lenderTricolorAn alternative auto lender that caters to thin- and no-credit Hispanic borrowers is planning a national expansion after scoring a $90 million investment from BlackRock-managed funds. Tricolor is a Dallas-based auto lender that is a community development financial institution. It uses a proprietary artificial-intelligence engine that decisions each customer based on more than 100 data points, such as proof of income. Half of Tricolor's customers have a FICO score, and less than 12% have scores above 650, yet the average customer has lived in the US for 15 years, according to the deck.A 2017 survey by the Federal Deposit Insurance Corporation found 31.5% of Hispanic households had no mainstream credit compared to 14.4% of white households. "For decades, the deck has been stacked against low income or credit invisible Hispanics in the United States when it comes to the purchase and financing of a used vehicle," Daniel Chu, founder and CEO of Tricolor, said in a statement announcing the raise.An auto lender that caters to underbanked Hispanics used this 25-page deck to raise $90 million from BlackRock investors A new way to access credit The TomoCredit teamTomoCreditKristy Kim knows first-hand the challenge of obtaining credit in the US without an established credit history. Kim, who came to the US from South Korea, couldn't initially get access to credit despite having a job in investment banking after graduating college. "I was in my early twenties, I had a good income, my job was in investment banking but I could not get approved for anything," Kim told Insider. "Many young professionals like me, we deserve an opportunity to be considered but just because we didn't have a Fico, we weren't given a chance to even apply," she added.Kim started TomoCredit in 2018 to help others like herself gain access to consumer credit. TomoCredit spent three years building an internal algorithm to underwrite customers based on cash flow, rather than a credit score.TomoCredit, a fintech that lends to thin- and no-credit borrowers, used this 17-page pitch deck to raise its $10 million Series AHelping streamline how debts are repaidMethod Financial cofounders Jose Bethancourt and Marco del Carmen.Method FinancialWhen Jose Bethancourt graduated from the University of Texas at Austin in May 2019, he faced the same question that confronts over 43 million Americans: How would he repay his student loans?The problem led Bethancourt on a nearly two-year journey that culminated in the creation of a startup aimed at making it easier for consumers to more seamlessly pay off all kinds of debt.  Initially, Bethancourt and fellow UT grad Marco del Carmen built GradJoy, an app that helped users better understand how to manage student loan repayment and other financial habits. GradJoy was accepted into Y Combinator in the summer of 2019. But the duo quickly realized the real benefit to users would be helping them move money to make payments instead of simply offering recommendations."When we started GradJoy, we thought, 'Oh, we'll just give advice — we don't think people are comfortable with us touching their student loans,' and then we realized that people were saying, 'Hey, just move the money — if you think I should pay extra, then I'll pay extra.' So that's kind of the movement that we've seen, just, everybody's more comfortable with fintechs doing what's best for them," Bethancourt told Insider. Here is the 11-slide pitch deck Method Financial, a Y Combinator-backed fintech making debt repayment easier, used to raise $2.5 million in pre-seed fundingQuantum computing made easyQC Ware CEO Matt Johnson.QC WareEven though banks and hedge funds are still several years out from adding quantum computing to their tech arsenals, that hasn't stopped Wall Street giants from investing time and money into the emerging technology class. And momentum for QC Ware, a startup looking to cut the time and resources it takes to use quantum computing, is accelerating. The fintech secured a $25 million Series B on September 29 co-led by Koch Disruptive Technologies and Covestro with participation from D.E. Shaw, Citi, and Samsung Ventures.QC Ware, founded in 2014, builds quantum algorithms for the likes of Goldman Sachs (which led the fintech's Series A), Airbus, and BMW Group. The algorithms, which are effectively code bases that include quantum processing elements, can run on any of the four main public-cloud providers.Quantum computing allows companies to do complex calculations faster than traditional computers by using a form of physics that runs on quantum bits as opposed to the traditional 1s and 0s that computers use. This is especially helpful in banking for risk analytics or algorithmic trading, where executing calculations milliseconds faster than the competition can give firms a leg up. Here's the 20-page deck QC Ware, a fintech making quantum computing more accessible, used to raised its $25 million Series BAnalyzing financial contractsEric Chang and Alex Schumacher, co-founders of ClairaClairaIt was a match made in heaven — at least the Wall Street type.Joseph Squeri, a former CIO at Citadel and Barclays, had always struggled with the digitization of financial documents. When he was tapped by Brady Dougan, the former chief executive of Credit Suisse, to build out an all-digital investment bank in Exos, Squeri spent the first year getting let down by more than a dozen tools that lacked a depth in financial legal documents. His solution came in the form of Alex Schumacher and Eric Chang who had the tech and financial expertise, respectively, to build the tool he needed.Schumacher is an expert in natural-language processing and natural-language understanding, having specialized in turning unstructured text into useful business information.Chang spent a decade as a trader and investment strategist at Goldman Sachs, BlackRock, and AQR. He developed a familiarity with the kinds of financial documents Squeri wanted to digitize, such as the terms and conditions information from SEC filings and publicly traded securities and transactions, like municipal bonds and collateralized loan obligations (CLOs). The three converged at Exos, Squeri as its COO and CTO, Schumacher as the lead data scientist, and Chang as head of tech and strategy. See the 14-page pitch deck that sold Citi on Claira, a startup using AI to help firms read through financial contracts in a fraction of the timeSimplifying quant modelsKirat Singh and Mark Higgins, Beacon's cofounders.BeaconA fintech that helps financial institutions use quantitative models to streamline their businesses and improve risk management is catching the attention, and capital, of some of the country's biggest investment managers.Beacon Platform, founded in 2014, is a fintech that builds applications and tools to help banks, asset managers, and trading firms quickly integrate quantitative models that can help with analyzing risk, ensuring compliance, and improving operational efficiency. The company raised its Series C on Wednesday, scoring a $56 million investment led by Warburg Pincus with support from Blackstone Innovations Investments, PIMCO, and Global Atlantic. Blackstone, PIMCO, and Global Atlantic are also users of Beacon's tech, as are the Commonwealth Bank of Australia and Shell New Energies, a division of Royal Dutch Shell, among others.The fintech provides a shortcut for firms looking to use quantitative modelling and data science across various aspects of their businesses, a process that can often take considerable resources if done solo.Here's the 20-page pitch deck Beacon, a fintech helping Wall Street better analyze risk and data, used to raise $56 million from Warburg Pincus, Blackstone, and PIMCOSussing out bad actorsFrom left to right: Cofounders CTO David Movshovitz, CEO Doron Hendler, and chief architect Adi DeGaniRevealSecurityAn encounter with an impersonation hacker led Doron Hendler to found RevealSecurity, a Tel Aviv-based cybersecurity startup that monitors for insider threats.Two years ago, a woman impersonating an insurance-agency representative called Hendler and convinced him that he made a mistake with his recent health insurance policy upgrade. She got him to share his login information for his insurer's website, even getting him to give the one-time passcode sent to his phone. Once the hacker got what she needed, she disconnected the call, prompting Hendler to call back. When no one picked up the phone, he realized he had been conned.He immediately called his insurance company to check on his account. Nothing seemed out of place to the representative. But Hendler, who was previously a vice president of a software company, suspected something intangible could have been collected, so he reset his credentials."The chief of information security, who was on the call, he asked me, 'So, how do you want me to identify you? You gave your credentials; you gave your ID; you gave the one time password. How the hell can I identify that it's not you?' And I told him, 'But I never behave like this,'" Hendler recalled of the conversation.RevealSecurity, a Tel Aviv-based cyber startup that tracks user behavior for abnormalities, used this 27-page deck to raise its Series AA new data feed for bond tradingMark Lennihan/APFor years, the only way investors could figure out the going price of a corporate bond was calling up a dealer on the phone. The rise of electronic trading has streamlined that process, but data can still be hard to come by sometimes. A startup founded by a former Goldman Sachs exec has big plans to change that. BondCliQ is a fintech that provides a data feed of pre-trade pricing quotes for the corporate bond market. Founded by Chris White, the creator of Goldman Sachs' defunct corporate-bond-trading system, BondCliQ strives to bring transparency to a market that has traditionally kept such data close to the vest. Banks, which typically serve as the dealers of corporate bonds, have historically kept pre-trade quotes hidden from other dealers to maintain a competitive advantage.But tech advancements and the rise of electronic marketplaces have shifted power dynamics into the hands of buy-side firms, like hedge funds and asset managers. The investors are now able to get a fuller picture of the market by aggregating price quotes directly from dealers or via vendors.Here's the 9-page pitch deck that BondCliQ, a fintech looking to bring more data and transparency to bond trading, used to raise its Series AFraud prevention for lenders and insurersFiordaliso/Getty ImagesOnboarding new customers with ease is key for any financial institution or retailer. The more friction you add, the more likely consumers are to abandon the entire process.But preventing fraud is also a priority, and that's where Neuro-ID comes in. The startup analyzes what it calls "digital body language," or, the way users scroll, type, and tap. Using that data, Neuro-ID can identify fraudulent users before they create an account. It's built for banks, lenders, insurers, and e-commerce players."The train has left the station for digital transformation, but there's a massive opportunity to try to replicate all those communications that we used to have when we did business in-person, all those tells that we would get verbally and non-verbally on whether or not someone was trustworthy," Neuro-ID CEO Jack Alton told Insider.Founded in 2014, the startup's pitch is twofold: Neuro-ID can save companies money by identifying fraud early, and help increase user conversion by making the onboarding process more seamless. In December Neuro-ID closed a $7 million Series A, co-led by Fin VC and TTV Capital, with participation from Canapi Ventures. With 30 employees, Neuro-ID is using the fresh funding to grow its team and create additional tools to be more self-serving for customers.Here's the 11-slide pitch deck a startup that analyzes consumers' digital behavior to fight fraud used to raise a $7 million Series AAI-powered tools to spot phony online reviews FakespotMarketplaces like Amazon and eBay host millions of third-party sellers, and their algorithms will often boost items in search based on consumer sentiment, which is largely based on reviews. But many third-party sellers use fake reviews often bought from click farms to boost their items, some of which are counterfeit or misrepresented to consumers.That's where Fakespot comes in. With its Chrome extension, it warns users of sellers using potentially fake reviews to boost sales and can identify fraudulent sellers. Fakespot is currently compatible with Amazon, BestBuy, eBay, Sephora, Steam, and Walmart."There are promotional reviews written by humans and bot-generated reviews written by robots or review farms," Fakespot founder and CEO Saoud Khalifah told Insider. "Our AI system has been built to detect both categories with very high accuracy."Fakespot's AI learns via reviews data available on marketplace websites, and uses natural-language processing to identify if reviews are genuine. Fakespot also looks at things like whether the number of positive reviews are plausible given how long a seller has been active.Fakespot, a startup that helps shoppers detect robot-generated reviews and phony sellers on Amazon and Shopify, used this pitch deck to nab a $4 million Series AHelping fintechs manage dataProper Finance co-founders Travis Gibson (left) and Kyle MaloneyProper FinanceAs the flow of data becomes evermore crucial for fintechs, from the strappy startup to the established powerhouse, a thorny issue in the back office is becoming increasingly complex.Even though fintechs are known for their sleek front ends, the back end is often quite the opposite. Behind that streamlined interface can be a mosaic of different partner integrations — be it with banks, payments players and networks, or software vendors — with a channel of data running between them. Two people who know that better than the average are Kyle Maloney and Travis Gibson, two former employees of Marqeta, a fintech that provides other fintechs with payments processing and card issuance. "Take an established neobank for example. They'll likely have one or two card issuers, two to three bank partners, ACH processing for direct deposits and payouts, mobile check deposits, peer-to-peer payments, and lending," Gibson told Insider. Here's the 12-page pitch deck a startup helping fintechs manage their data used to score a $4.3 million seed from investors like Redpoint Ventures and Y CombinatorE-commerce focused business bankingMichael Rangel, cofounder and CEO, and Tyler McIntyre, cofounder and CTO of Novo.Kristelle Boulos PhotographyBusiness banking is a hot market in fintech. And it seems investors can't get enough.Novo, the digital banking fintech aimed at small e-commerce businesses, raised a $40.7 million Series A led by Valar Ventures in June. Since its launch in 2018, Novo has signed up 100,000 small businesses. Beyond bank accounts, it offers expense management, a corporate card, and integrates with e-commerce infrastructure players like Shopify, Stripe, and Wise.Founded in 2018, Novo was based in New York City, but has since moved its headquarters to Miami. Here's the 12-page pitch deck e-commerce banking startup Novo used to raise its $40 million Series AShopify for embedded financeProductfy CEO and founder, Duy VoProductfyProductfy is looking to break into embedded finance by becoming the Shopify of back-end banking services.Embedded finance — integrating banking services in non-financial settings — has taken hold in the e-commerce world. But Productfy is going after a different kind of customer in churches, universities, and nonprofits.The San Jose, Calif.-based upstart aims to help non-finance companies offer their own banking products. Productfy can help customers launch finance features in as little as a week and without additional engineering resources or background knowledge of banking compliance or legal requirements, Productfy founder and CEO Duy Vo told Insider. "You don't need an engineer to stand up Shopify, right? You can be someone who's just creating art and you can use Shopify to build your own online store," Vo said, adding that Productfy is looking to take that user experience and replicate it for banking services.Here's the 15-page pitch deck Productfy, a fintech looking to be the Shopify of embedded finance, used to nab a $16 million Series ADeploying algorithms and automation to small-business financingJustin Straight and Bernard Worthy, LoanWell co-foundersLoanWellBernard Worthy and Justin Straight, the founders of LoanWell, want to break down barriers to financing for small and medium-size businesses — and they've got algorithms and automation in their tech arsenals that they hope will do it.Worthy, the company's CEO, and Straight, its chief operating and financial officer, are powering community-focused lenders to fill a gap in the SMB financing world by boosting access to loans under $100,000. And the upstart is known for catching the attention, and dollars, of mission-driven investors. LoanWell closed a $3 million seed financing round in December led by Impact America Fund with participation from SoftBank's SB Opportunity Fund and Collab Capital.LoanWell automates the financing process — from underwriting and origination, to money movement and servicing — which shaves down an up-to-90-day process to 30 days or even same-day with some LoanWell lenders, Worthy said. SMBs rely on these loans to process quickly after two years of financial uncertainty. But the pandemic illustrated how time-consuming and expensive SMB financing can be, highlighted by efforts like the federal government's Paycheck Protection Program.Community banks, once the lifeline to capital for many local businesses, continue to shutter. And demands for smaller loan amounts remain largely unmet. More than half of business-loan applicants sought $100,000 or less, according to 2018 data from the Federal Reserve. But the average small-business bank loan was closer to six times that amount, according to the latest data from a now discontinued Federal Reserve survey.Here's the 14-page pitch deck LoanWell used to raise $3 million from investors like SoftBank.Branded cards for SMBsJennifer Glaspie-Lundstrom is the cofounder and CEO of Tandym.TandymJennifer Glaspie-Lundstrom is no stranger to the private-label credit-card business. As a former Capital One exec, she worked in both the card giant's co-brand partnerships division and its tech organization during her seven years at the company.Now, Glaspie-Lundstrom is hoping to use that experience to innovate a sector that was initially created in malls decades ago.Glaspie-Lundstrom is the cofounder and CEO of Tandym, which offers private-label digital credit cards to merchants. Store and private-label credit cards aren't a new concept, but Tandym is targeting small- and medium-sized merchants with less than $1 billion in annual revenue. Glaspie-Lundstrom said that group often struggles to offer private-label credit due to the expense of working with legacy players."What you have is this example of a very valuable product type that merchants love and their customers love, but a huge, untapped market that has heretofore been unserved, and so that's what we're doing with Tandym," Glaspi-Lundstrom told Insider.A former Capital One exec used this deck to raise $60 million for a startup helping SMBs launch their own branded credit cardsCatering to 'micro businesses'Stefanie Sample is the founder and CEO of FundidFundidStartups aiming to simplify the often-complex world of corporate cards have boomed in recent years.Business-finance management startup Brex was last valued at $12.3 billion after raising $300 million last year. Startup card provider Ramp announced an $8.1 billion valuation in March after growing its revenue nearly 10x in 2021. Divvy, a small business card provider, was acquired by Bill.com in May 2021 for approximately $2.5 billion.But despite how hot the market has gotten, Stefanie Sample said she ended up working in the space by accident. Sample is the founder and CEO of Fundid, a new fintech that provides credit and lending products to small businesses.This May, Fundid announced a $3.25 million seed round led by Nevcaut Ventures. Additional investors include the Artemis Fund and Builders and Backers. The funding announcement capped off the company's first year: Sample introduced the Fundid concept in April 2021, launched its website in May, and began raising capital in August."I never meant to do Fundid," Sample told Insider. "I never meant to do something that was venture-backed."Read the 12-page deck used by Fundid, a fintech offering credit and lending tools for 'micro businesses'Embedded payments for SMBsThe Highnote teamHighnoteBranded cards have long been a way for merchants with the appropriate bank relationships to create additional revenue and build customer loyalty. The rise of embedded payments, or the ability to shop and pay in a seamless experience within a single app, has broadened the number of companies looking to launch branded cards.Highnote is a startup that helps small to mid-sized merchants roll out their own debit and pre-paid digital cards. The fintech emerged from stealth on Tuesday to announce it raised $54 million in seed and Series A funding.Here's the 12-page deck Highnote, a startup helping SMBs embed payments, used to raise $54 million in seed and Series A fundingSpeeding up loans for government contractors OppZo cofounders Warren Reed and Randy GarrettOppZoThe massive market for federal government contracts approached $700 billion in 2020, and it's likely to grow as spending accelerates amid an ongoing push for investment in the nation's infrastructure. Many of those dollars flow to small-and-medium sized businesses, even though larger corporations are awarded the bulk of contracts by volume. Of the roughly $680 billion in federal contracts awarded in 2020, roughly a quarter, according to federal guidelines, or some $146 billion that year, went to smaller businesses.But peeking under the hood of the procurement process, the cofounders of OppZo — Randy Garrett and Warren Reed — saw an opportunity to streamline how smaller-sized businesses can leverage those contracts to tap in to capital.  Securing a deal is "a government contractor's best day and their worst day," as Garrett, OppZo's president, likes to put it."At that point they need to pay vendors and hire folks to start the contract. And they may not get their first contract payment from the government for as long as 120 days," Reed, the startup's CEO,  told Insider. Check out the 12-page pitch deck OppZo, a fintech that has figured out how to speed up loans to small government contractors, used to raise $260 million in equity and debtHelping small businesses manage their taxesComplYant's founder Shiloh Jackson wants to help people be present in their bookkeeping.ComplYantAfter 14 years in tax accounting, Shiloh Johnson had formed a core philosophy around corporate accounting: everyone deserves to understand their business's money and business owners need to be present in their bookkeeping process.She wanted to help small businesses understand "this is why you need to do what you're doing and why you have to change the way you think about tax and be present in your bookkeeping process," she told Insider. The Los Angeles native wanted small businesses to not only understand business tax no matter their size but also to find the tools they needed to prepare their taxes in one spot. So Johnson developed a software platform that provides just that.The 13-page pitch deck ComplYant used to nab $4 million that details the tax startup's plan to be Turbotax, Quickbooks, and Xero rolled into one for small business ownersAutomating accounting ops for SMBsDecimal CEO Matt Tait.DecimalSmall- and medium-sized businesses can rely on any number of payroll, expense management, bill pay, and corporate-card startups promising to automate parts of their financial workflow. Smaller firms have adopted this corporate-financial software en masse, boosting growth throughout the pandemic for relatively new entrants like Ramp and massive, industry stalwarts like Intuit. But it's no easy task to connect all of those tools into one, seamless process. And while accounting operations might be far from where many startup founders want to focus their time, having efficient back-end finances does mean time — and capital — freed up to spend elsewhere. For Decimal CEO Matt Tait, there's ample opportunity in "the boring stuff you have to do to survive as a company," he told Insider. Launched in 2020, Decimal provides a back-end tech layer that small- and medium-sized businesses can use to integrate their accounting and business-management software tools in one place.On Wednesday, Decimal announced a $9 million seed fundraising round led by Minneapolis-based Arthur Ventures, alongside Service Providers Capital and other angel investors. See the 13-page pitch deck for Decimal, a startup automating accounting ops for small businessesInvoice financing for SMBsStacey Abrams and Lara Hodgson, Now co-foundersNowAbout a decade ago, politician Stacey Abrams and entrepreneur Lara Hodgson were forced to fold their startup because of a kink in the supply chain — but not in the traditional sense.Nourish, which made spill-proof bottled water for children, had grown quickly from selling to small retailers to national ones. And while that may sound like a feather in the small business' cap, there was a hang-up."It was taking longer and longer to get paid, and as you can imagine, you deliver the product and then you wait and you wait, but meanwhile you have to pay your employees and you have to pay your vendors," Hodgson told Insider. "Waiting to get paid was constraining our ability to grow."While it's not unusual for small businesses to grapple with working capital issues, the dust was still settling from the Great Recession. Abrams and Hodgson couldn't secure a line of credit or use financing tools like factoring to solve their problem. The two entrepreneurs were forced to close Nourish in 2012, but along the way they recognized a disconnect in the system.  "Why are we the ones borrowing money, when in fact we're the lender here because every time you send an invoice to a customer, you've essentially extended a free loan to that customer by letting them pay later," Hodgson said. "And the only reason why we were going to need to possibly borrow money was because we had just given ours away for free to Whole Foods," she added.Check out the 7-page deck that Now, Stacey Abrams' fintech that wants to help small businesses 'grow fearlessly', used to raise $29 millionCheckout made easyRyan Breslow.Ryan BreslowAmazon has long dominated e-commerce with its one-click checkout flows, offering easier ways for consumers to shop online than its small-business competitors.Bolt gives small merchants tools to offer the same easy checkouts so they can compete with the likes of Amazon.The startup raised its $393 million Series D to continue adding its one-click checkout feature to merchants' own websites in October.Bolt markets to merchants themselves. But a big part of Bolt's pitch is its growing network of consumers — currently over 5.6 million — that use its features across multiple Bolt merchant customers. Roughly 5% of Bolt's transactions were network-driven in May, meaning users that signed up for a Bolt account on another retailer's website used it elsewhere. The network effects were even more pronounced in verticals like furniture, where 49% of transactions were driven by the Bolt network."The network effect is now unleashed with Bolt in full fury, and that triggered the raise," Bolt's founder and CEO Ryan Breslow told Insider.Here's the 12-page deck that one-click checkout Bolt used to outline its network of 5.6 million consumers and raise its Series DPayments infrastructure for fintechsQolo CEO and co-founder Patricia MontesiQoloThree years ago, Patricia Montesi realized there was a disconnect in the payments world. "A lot of new economy companies or fintech companies were looking to mesh up a lot of payment modalities that they weren't able to," Montesi, CEO and co-founder of Qolo, told Insider.Integrating various payment capabilities often meant tapping several different providers that had specializations in one product or service, she added, like debit card issuance or cross-border payments. "The way people were getting around that was that they were creating this spider web of fintech," she said, adding that "at the end of it all, they had this mess of suppliers and integrations and bank accounts."The 20-year payments veteran rounded up a group of three other co-founders — who together had more than a century of combined industry experience — to start Qolo, a business-to-business fintech that sought out to bundle back-end payment rails for other fintechs.Here's the 11-slide pitch deck a startup that provides payments infrastructure for other fintechs used to raise a $15 million Series ABetter use of payroll dataAtomic's Head of Markets, Lindsay DavisAtomicEmployees at companies large and small know the importance — and limitations — of how firms manage their payrolls. A new crop of startups are building the API pipes that connect companies and their employees to offer a greater level of visibility and flexibility when it comes to payroll data and employee verification. On Thursday, one of those names, Atomic, announced a $40 million Series B fundraising round co-led by Mercato Partners and Greylock, alongside Core Innovation Capital, Portage, and ATX Capital. The round follows Atomic's Series A round announced in October, when the startup raised a $22 million Series A from investors including Core Innovation Capital, Portage, and Greylock.Payroll startup Atomic just raised a $40 million Series B. Here's an internal deck detailing the fintech's approach to the red-hot payments space.Saving on vendor invoicesHoward Katzenberg, Glean's CEO and cofounderGleanWhen it comes to high-flying tech startups, headlines and investors typically tend to focus on industry "disruption" and the total addressable market a company is hoping to reach. Expense cutting as a way to boost growth typically isn't part of the conversation early on, and finance teams are viewed as cost centers relative to sales teams. But one fast-growing area of business payments has turned its focus to managing those costs. Startups like Ramp and established names like Bill.com have made their name offering automated expense-management systems. Now, one new fintech competitor, Glean, is looking to take that further by offering both automated payment services and tailored line-item accounts-payable insights driven by machine-learning models. Glean's CFO and founder, Howard Katzenberg, told Insider that the genesis of Glean was driven by his own personal experience managing the finance teams of startups, including mortgage lender Better.com, which Katzenberg left in 2019, and online small-business lender OnDeck. "As a CFO of high-growth companies, I spent a lot of time focused on revenue and I had amazing dashboards in real time where I could see what is going on top of the funnel, what's going on with conversion rates, what's going on in terms of pricing and attrition," Katzenberg told Insider. See the 15-slide pitch deck Glean, a startup using machine learning to find savings in vendor invoices, used to raise $10.8 million in seed fundingReal-estate management made easyAgora founders Noam Kahan, CTO, Bar Mor, CEO, and Lior Dolinski, CPOAgoraFor alternative asset managers of any type, the operations underpinning sales and investor communications are a crucial but often overlooked part of the business. Fund managers love to make bets on markets, not coordinate hundreds of wire transfers to clients each quarter or organize customer-relationship-management databases.Within the $10.6 trillion global market for professionally managed real-estate investing, that's where Tel Aviv and New York-based startup Agora hopes to make its mark.Founded in 2019, Agora offers a set of back-office, investor relations, and sales software tools that real-estate investment managers can plug into their workflows. On Wednesday, Agora announced a $9 million seed round, led by Israel-based venture firm Aleph, with participation from River Park Ventures and Maccabee Ventures. The funding comes on the heels of an October 2020 pre-seed fund raise worth $890,000, in which Maccabee also participated.Here's the 15-slide pitch deck that Agora, a startup helping real-estate investors manage communications and sales with their clients, used to raise a $9 million seed roundAccess to commercial real-estate investing LEX Markets cofounders and co-CEOs Drew Sterrett and Jesse Daugherty.LEX MarketsDrew Sterrett was structuring real-estate deals while working in private equity when he realized the inefficiencies that existed in the market. Only high-net worth individuals or accredited investors could participate in commercial real-estate deals. If they ever wanted to leave a partnership or sell their stake in a property, it was difficult to find another investor to replace them. Owners also struggled to sell minority stakes in their properties and didn't have many good options to recapitalize an asset if necessary.In short, the market had a high barrier to entry despite the fact it didn't always have enough participants to get deals done quickly. "Most investors don't have access to high-quality commercial real-estate investments. How do we have the oldest and largest asset class in the world and one of the largest wealth creators with no public and liquid market?" Sterrett told Insider. "It sort of seems like a no-brainer, and that this should have existed 50 or 60 years ago."This 15-page pitch deck helped LEX Markets, a startup making investing in commercial real estate more accessible, raise $15 millionInsurance goes digitalJamie Hale, CEO and cofounder of LadderLadderFintechs looking to transform how insurance policies are underwritten, issued, and experienced by customers have grown as new technology driven by digital trends and artificial intelligence shape the market. And while verticals like auto, homeowner's, and renter's insurance have seen their fair share of innovation from forward-thinking fintechs, one company has taken on the massive life-insurance market. Founded in 2017, Ladder uses a tech-driven approach to offer life insurance with a digital, end-to-end service that it says is more flexible, faster, and cost-effective than incumbent players.Life, annuity, and accident and health insurance within the US comprise a big chunk of the broader market. In 2020, premiums written on those policies totaled some $767 billion, compared to $144 billion for auto policies and $97 billion for homeowner's insurance.Here's the 12-page deck that Ladder, a startup disrupting the 'crown jewel' of the insurance market, used to nab $100 millionData science for commercial insuranceTanner Hackett, founder and CEO of CounterpartCounterpartThere's been no shortage of funds flowing into insurance-technology companies over the past few years. Private-market funding to insurtechs soared to $15.4 billion in 2021, a 90% increase compared to 2020. Some of the most well-known consumer insurtech names — from Oscar (which focuses on health insurance) to Metromile (which focuses on auto) — launched on the public markets last year, only to fall over time or be acquired as investors questioned the sustainability of their business models. In the commercial arena, however, the head of one insurtech company thinks there is still room to grow — especially for those catering to small businesses operating in an entirely new, pandemic-defined environment. "The bigger opportunity is in commercial lines," Tanner Hackett, the CEO of management liability insurer Counterpart, told Insider."Everywhere I poke, I'm like, 'Oh my goodness, we're still in 1.0, and all the other businesses I've built were on version three.' Insurance is still in 1.0, still managing from spreadsheets and PDFs," added Hackett, who also previously co-founded Button, which focuses on mobile marketing. See the 8-page pitch deck Counterpart, a startup disrupting commercial insurance with data science, used to raise a $30 million Series BSmarter insurance for multifamily propertiesItai Ben-Zaken, cofounder and CEO of Honeycomb.HoneycombA veteran of the online-insurance world is looking to revolutionize the way the industry prices risk for commercial properties with the help of artificial intelligence.Insurance companies typically send inspectors to properties before issuing policies to better understand how the building is maintained and identify potential risks or issues with it. It's a process that can be time-consuming, expensive, and inefficient, making it hard to justify for smaller commercial properties, like apartment and condo buildings.Insurtech Honeycomb is looking to fix that by using AI to analyze a combination of third-party data and photos submitted by customers through the startup's app to quickly identify any potential risks at a property and more accurately price policies."That whole physical inspection thing had really good things in it, but it wasn't really something that is scalable and, it's also expensive," Itai Ben-Zaken, Honeycomb's cofounder and CEO, told Insider. "The best way to see a property right now is Google street view. Google street view is usually two years old."Here's the 10-page Series A pitch deck used by Honeycomb, a startup that wants to revolutionize the $26 billion market for multifamily property insuranceHelping freelancers with their taxesJaideep Singh is the CEO and co-founder of FlyFin, an AI-driven tax preparation software program for freelancers.FlyFinSome people, particularly those with families or freelancing businesses, spend days searching for receipts for tax season, making tax preparation a time consuming and, at times, taxing experience. That's why in 2020 Jaideep Singh founded FlyFin, an artificial-intelligence tax preparation program for freelancers that helps people, as he puts it, "fly through their finances." FlyFin is set up to connect to a person's bank accounts, allowing the AI program to help users monitor for certain expenses that can be claimed on their taxes like business expenditures, the interest on mortgages, property taxes, or whatever else that might apply. "For most individuals, people have expenses distributed over multiple financial institutions. So we built an AI platform that is able to look at expenses, understand the individual, understand your profession, understand the freelance population at large, and start the categorization," Singh told Insider.Check out the 7-page pitch deck a startup helping freelancers manage their taxes used to nab $8 million in fundingDigital banking for freelancersJGalione/Getty ImagesLance is a new digital bank hoping to simplify the life of those workers by offering what it calls an "active" approach to business banking. "We found that every time we sat down with the existing tools and resources of our accountants and QuickBooks and spreadsheets, we just ended up getting tangled up in the whole experience of it," Lance cofounder and CEO Oona Rokyta told Insider. Lance offers subaccounts for personal salaries, withholdings, and savings to which freelancers can automatically allocate funds according to custom preset levels. It also offers an expense balance that's connected to automated tax withholdings.In May, Lance announced the closing of a $2.8 million seed round that saw participation from Barclays, BDMI, Great Oaks Capital, Imagination Capital, Techstars, DFJ Frontier, and others.Here's the 21-page pitch deck Lance, a digital bank for freelancers, used to raise a $2.8 million seed round from investors including BarclaysSoftware for managing freelancersWorksome cofounder and CEO Morten Petersen.WorksomeThe way people work has fundamentally changed over the past year, with more flexibility and many workers opting to freelance to maintain their work-from-home lifestyles.But managing a freelance or contractor workforce is often an administrative headache for employers. Worksome is a startup looking to eliminate all the extra work required for employers to adapt to more flexible working norms.Worksome started as a freelancer marketplace automating the process of matching qualified workers with the right jobs. But the team ultimately pivoted to a full suite of workforce management software, automating administrative burdens required to hire, pay, and account for contract workers.In May, Worksome closed a $13 million Series A backed by European angel investor Tommy Ahlers and Danish firm Lind & Risør.Here's the 21-slide pitch deck used by a startup that helps firms like Carlsberg and Deloitte manage freelancersPayments and operations support HoneyBook cofounders Dror Shimoni, Oz Alon, and Naama Alon.HoneyBookWhile countless small businesses have been harmed by the pandemic, self-employment and entrepreneurship have found ways to blossom as Americans started new ventures.Half of the US population may be freelance by 2027, according to a study commissioned by remote-work hiring platform Upwork. HoneyBook, a fintech startup that provides payment and operations support for freelancers, in May raised $155 million in funding and achieved unicorn status with its $1 billion-plus valuation.Durable Capital Partners led the Series D funding with other new investors including renowned hedge fund Tiger Global, Battery Ventures, Zeev Ventures, and 01 Advisors. Citi Ventures, Citigroup's startup investment arm that also backs fintech robo-advisor Betterment, participated as an existing investor in the round alongside Norwest Venture partners. The latest round brings the company's fundraising total to $227 million to date.Here's the 21-page pitch deck a Citi-backed fintech for freelancers used to raise $155 million from investors like hedge fund Tiger GlobalPay-as-you-go compliance for banks, fintechs, and crypto startupsNeepa Patel, Themis' founder and CEOThemisWhen Themis founder and CEO Neepa Patel set out to build a new compliance tool for banks, fintech startups, and crypto companies, she tapped into her own experience managing risk at some of the nation's biggest financial firms. Having worked as a bank regulator at the Office of the Comptroller of the Currency and in compliance at Morgan Stanley, Deutsche Bank, and the enterprise blockchain company R3, Patel was well-placed to assess the shortcomings in financial compliance software. But Patel, who left the corporate world to begin work on Themis in 2020, drew on more than just her own experience and frustrations to build the startup."It's not just me building a tool based on my personal pain points. I reached out to regulators. I reached out to bank compliance officers and members in the fintech community just to make sure that we're building it exactly how they do their work," Patel told Insider. "That was the biggest problem: No one built a tool that was reflective of how people do their work."Check out the 9-page pitch deck Themis, which offers pay-as-you-go compliance for banks, fintechs, and crypto startups, used to raise $9 million in seed fundingConnecting startups and investorsHum Capital cofounder and CEO Blair SilverbergHum CapitalBlair Silverberg is no stranger to fundraising.For six years, Silverberg was a venture capitalist at Draper Fisher Jurvetson and Private Credit Investments making bets on startups."I was meeting with thousands of founders in person each year, watching them one at a time go through this friction where they're meeting a ton of investors, and the investors are all asking the same questions," Silverberg told Insider. He switched gears about three years ago, moving to the opposite side of the metaphorical table, to start Hum Capital, which uses artificial intelligence to match investors with startups looking to fundraise.On August 31, the New York-based fintech announced its $9 million Series A. The round was led by Future Ventures with participation from Webb Investment Network, Wavemaker Partners, and Partech. This 11-page pitch deck helped Hum Capital, a fintech using AI to match investors with startups, raise a $9 million Series A.Helping LatAm startups get up to speedKamino cofounders Gut Fragoso, Rodrigo Perenha, Benjamin Gleason, and Gonzalo ParejoKaminoThere's more venture capital flowing into Latin America than ever before, but getting the funds in founders' hands is not exactly a simple process.In 2021, investors funneled $15.3 billion into Latin American companies, more than tripling the previous record of $4.9 billion in 2019. Fintech and e-commerce sectors drove funding, accounting for 39% and 25% of total funding, respectively.  However, for many startup founders in the region who have successfully sold their ideas and gotten investors on board, there's a patchwork of corporate structuring that's needed to access the funds, according to Benjamin Gleason, who was the chief financial officer at Groupon LatAm prior to cofounding Brazil-based fintech Kamino.It's a process Gleason and his three fellow Kamino cofounders have been through before as entrepreneurs and startup execs themselves. Most often, startups have to set up offshore financial accounts outside of Brazil, which "entails creating a Cayman [Islands] holding company, a Delaware LLC, and then connecting it to a local entity here and also opening US bank accounts for the Cayman entity, which is not trivial from a KYC perspective," said Gleason, who founded open-banking fintech Guiabolso in Sao Paulo. His partner, Gonzalo Parejo, experienced the same toils when he founded insurtech Bidu."Pretty much any international investor will usually ask for that," Gleason said, adding that investors typically cite liability issues."It's just a massive amount of bureaucracy, complexity, a lot of time from the founders. All of this just to get the money from the investor that wants to give them the money," he added.Here's the 8-page pitch deck Kamino, a fintech helping LatAm startups with everything from financing to corporate credit cards, used to raise a $6.1M pre-seed roundThe back-end tech for beautyDanielle Cohen-Shohet, CEO and founder of GlossGeniusGlossGeniusDanielle Cohen-Shohet might have started as a Goldman Sachs investment analyst, but at her core she was always a coder.After about three years at Goldman Sachs, Cohen-Shohet left the world of traditional finance to code her way into starting her own company in 2016. "There was a period of time where I did nothing, but eat, sleep, and code for a few weeks," Cohen-Shohet told Insider. Her technical edge and knowledge of the point-of-sale payment space led her to launch a software company focused on providing behind-the-scenes tech for beauty and wellness small businesses.Cohen-Shohet launched GlossGenius in 2017 to provide payments tech for hair stylists, nail technicians, blow-out bars, and other small businesses in the space.Here's the 11-page deck GlossGenius, a startup that provides back-end tech for the beauty industry, used to raise $16 millionRead the original article on Business Insider.....»»

Category: topSource: businessinsiderJul 11th, 2022

Is Special Insurance For Abortion Travel Coming?

Is Special Insurance For Abortion Travel Coming? It Might Assure Funding Despite Restrictive State Laws Special Insurance For Abortion Travel WASHINGTON, D.C. (July 5, 2022) – While the loss of constitutional protection for abortions has raised many insurance-related questions which are now being actively explored, one issue which so far seems not to be under […] Is Special Insurance For Abortion Travel Coming? It Might Assure Funding Despite Restrictive State Laws Special Insurance For Abortion Travel WASHINGTON, D.C. (July 5, 2022) – While the loss of constitutional protection for abortions has raised many insurance-related questions which are now being actively explored, one issue which so far seems not to be under discussion is whether there is sufficient need for insurance policies to provide funding for out-of-state abortions to women who live and/or work in states where such procedures are severely restricted if not outlawed. if (typeof jQuery == 'undefined') { document.write(''); } .first{clear:both;margin-left:0}.one-third{width:31.034482758621%;float:left;margin-left:3.448275862069%}.two-thirds{width:65.51724137931%;float:left}form.ebook-styles .af-element input{border:0;border-radius:0;padding:8px}form.ebook-styles .af-element{width:220px;float:left}form.ebook-styles .af-element.buttonContainer{width:115px;float:left;margin-left: 6px;}form.ebook-styles .af-element.buttonContainer input.submit{width:115px;padding:10px 6px 8px;text-transform:uppercase;border-radius:0;border:0;font-size:15px}form.ebook-styles .af-body.af-standards input.submit{width:115px}form.ebook-styles .af-element.privacyPolicy{width:100%;font-size:12px;margin:10px auto 0}form.ebook-styles .af-element.privacyPolicy p{font-size:11px;margin-bottom:0}form.ebook-styles .af-body input.text{height:40px;padding:2px 10px !important} form.ebook-styles .error, form.ebook-styles #error { color:#d00; } form.ebook-styles .formfields h1, form.ebook-styles .formfields #mg-logo, form.ebook-styles .formfields #mg-footer { display: none; } form.ebook-styles .formfields { font-size: 12px; } form.ebook-styles .formfields p { margin: 4px 0; } Get Our Activist Investing Case Study! Get the entire 10-part series on our in-depth study on activist investing in PDF. Save it to your desktop, read it on your tablet, or print it out to read anywhere! Sign up below! (function($) {window.fnames = new Array(); window.ftypes = new Array();fnames[0]='EMAIL';ftypes[0]='email';}(jQuery));var $mcj = jQuery.noConflict(true); Q1 2022 hedge fund letters, conferences and more Find A Qualified Financial Advisor Finding a qualified financial advisor doesn't have to be hard. SmartAsset's free tool matches you with up to 3 fiduciary financial advisors in your area in 5 minutes. Each advisor has been vetted by SmartAsset and is held to a fiduciary standard to act in your best interests. If you're ready to be matched with local advisors that can help you achieve your financial goals, get started now. This could come up in at least two common situations - business corporations and institutions of higher education - suggests public interest law professor John Banzhaf. First, many businesses have already pledged to cover - for employees in states where abortions are restricted - the transportation and other expenses to travel to a nearby state for the procedure. Indeed, some see access to reproductive health care as another health-care employment benefit, akin to dental expenses or egg-freezing coverage. But since the corporation is doing business in the abortion-restricting state and has employees there, legislators in some situations may be able to prevent any such payments, and/or punish the in-state corporation for aiding and abetting an abortion, even if the procedure itself occurs in another state where it is legal. This may not be a major concern for many large corporations which have self-insured ERISA [Employment Retirement Income Security Act] health plans - i.e., those where the employer itself covers the costs of providing health-care benefits to its workers directly - since ERISA in many situations preempts state law. However, this federal statute doesn't offer protection regarding violations of criminal law. Thus an employer with a self-insured plan might still be concerned about prosecution if its benefits involved something which is regarded as criminal. In any event, at this stage, things are far from crystal clear, so litigation is possible if not likely. On the other hand, the types of plans favored by smaller companies - i.e., fully insured group health plans where the employer purchases its employees' health insurance through a state-regulated commercial insurance carrier - are likely to be covered by state law, and therefore present legal and other problems for companies which try to offer such an abortion benefit, suggests Banzhaf. This could occur even if the employer did not explicitly single out abortions, but rather simply provided that the plan would cover medical travel for care not available near an employee's home. Abortion Coverage Prohibited It appears that only 11 states now prohibit abortion coverage from being included in fully-funded private insurance policies. So at this time there are some states that ban abortions, but do not yet ban coverage for it, but this is likely to change soon, notes Banzhaf. Some have suggested another workaround for fully-insured plans which don't cover abortion-related travel expenses. An integrated health insurance reimbursement arrangement [HRA] is an employer-funded group health insurance plan which is used to reimburse employees in the company's group medical insurance plan for qualifying expenses not paid by the traditional plan. Similar benefits might even be provided in some instances through a health flexible spending account [health FSA]; or a health savings account [HSA]. Second, there is already talk and speculation that many women will be reluctant to attend a college or university in an abortion-restricting state since they may not be able to obtain the procedure should it become necessary. This seems to be true even for young women who don't necessarily plan to be sexually active and/or do plan to use protection while away from home, as well as parents who may not be so trusting. Institutions of higher education would obviously be reluctant to lose the financial and other opportunities to have such women enrolled. Moreover, if there were to occur a significant decline in the number of females studying at any institution, male students may likewise be reluctant to apply since many young men would hope and expect the number of females in their schools to be roughly the same as the number of males. In such situations, since the college or university is physically located in an abortion-restricting state, the state probably will prohibit both private and public colleges and universities from aiding and abetting their students in obtaining an abortion in another state. One way to overcome these twin problems might be for an insurance company located in an abortion-supportive state, such as New York or California, to begin offering policies designed to provide funding should the insured in any abortion-restricting state find it necessary to travel to a neighboring state for an abortion. Since the insurance company would be located beyond the borders of the abortion-restricting state, that state's restrictive laws probably would not apply. In any event. authorities in Texas or Florida, for example, would hardly be able to impose penalties on an insurance company located in New York or California. While probably not completely impossible, it would be much harder for an abortion-restricting state to crack down on companies, colleges, or universities doing business within its borders that simply provide funding for such insurance - which might or might not ever be used by any particular employee. That's because, without knowing the name of any woman who received payment for an out-of-state abortion from an insurance company in an abortion-supportive state, it would be hard to prove that payment of the insurance premiums actually aided or abetted any specifically prohibited abortion. It would also be illegal, because of the First Amendment, for an abortion-restricting state to seek to prohibit or punish a company, college, or university simply because it advised the availability of such insurance, argues Banzhaf, a noted First Amendment scholar. In short, the Supreme Court's recent decision, as well as the various laws, court stays, and other developments which continue to occur, have created lots of uncertainties, including possible opportunities for one or more insurance companies, especially if they wish to actively support abortion rights though their policies, as well as take advantage of what might seem to be a new lucrative business opportunity, suggests the law professor. Updated on Jul 6, 2022, 1:38 pm (function() { var sc = document.createElement("script"); sc.type = "text/javascript"; sc.async = true;sc.src = "//mixi.media/data/js/95481.js"; sc.charset = "utf-8";var s = document.getElementsByTagName("script")[0]; s.parentNode.insertBefore(sc, s); }()); window._F20 = window._F20 || []; _F20.push({container: 'F20WidgetContainer', placement: '', count: 3}); _F20.push({finish: true});.....»»

Category: blogSource: valuewalkJul 6th, 2022

A UK company testing out a 4-day work week to attract employees says it"s seen a boost in productivity, profits, and morale

Girling Jones staff rotate days off, and are all in the office on Mondays and Fridays. It's seen a 29% increase in profits from this time last year. Girling Jones staff take off rotating days of the week, but on Mondays and Fridays, they’re all in the office.Girling Jones A UK pilot program is testing out a four-day work week for 3,300 employees at 70 companies.  One of the companies involved started early — it's been testing out a four-day week since January.  The associate director of the firm said that productivity, profits, and morale have all increased this year.  A year ago, leaders at Girling Jones — a construction-recruitment firm in Devon, England — brainstormed ways to make their company more appealing to potential workers. Fiona Blackwell, associate director of the firm, told Insider that the group debated a number of different ideas, such as raising pay or reducing working hours. But one idea kept popping up: a four-day work week.Blackwell, 34, said that a recent successful trial of a four-day week in Iceland inspired her team to implement its own year-long test this past January, in which Girling Jones' dozen employees would get paid the same amount of money for fewer days of work. Although it started out as an endeavor to make hiring and retaining employees easier, Blackwell said that it "became something much bigger," creating a more productive environment during working hours and improving the mood among staff, in addition to seeing a boost in profits. "The reason we're doing it now is that people are happier," Blackwell said. "If your home life is great and you're balancing home life and hobbies, you're going to come into work happier and that's a direct link there… that's why we're doing it now, more than the original reason." Girling Jones joined about 70 other British companies this month in trying out the four-day work week, in a pilot program that will last six months and involve 3,300 workers across many industries, including food production, marketing, and tech. The program, called 4 Day Work Week Global, is a collaboration between three non-profit organizations, a labor think-tank, and researchers at three universities in the United Kingdom and United States. Girling Jones was asked to be a part of the program, months after instituting a four-day week test on its own. 4 Day Week Global proposes a truncated work week in order to improve mental health and well-being among the global workforce — but as Blackwell points out, a shorter week might also be just what employers need to entice workers to join and stay on the payroll. That's because workers in both the US and the UK have been quitting their jobs in droves over the past year as a part of "the Great Resignation." Workers have been seeking better pay, safer working conditions, and a better work-life balance, with many saying they would quit if they were forced to come back into the office full-time. With all the job hopping and workers resisting a return to the office, companies like Blackwell's have been searching for ways to keep their employees happy — and a four-day work week might be the answer. "We're trying to ensure that people stay, because we're the first recruitment agency to do it here," Blackwell said. "Doing their job in this environment would make it hard for people to go back to a five-day week at a different office."  'In four days we're being more thorough with our work'Girling Jones staff take off rotating days of the week, but on Mondays and Fridays, they're all in the office. "In four days we're being more thorough with our work," she said. She added that despite fewer clocked hours, employees at Girling Jones have actually been more productive overall in the past few months — and her theory is that it's because there's less time to waste. "If you don't complete something you need to complete, say on a Tuesday, what's the point of stressing on Wednesday that you have to do it on Thursday?" she said. "So you finish it on Tuesday so you can enjoy your day off… This isn't to say that any of us were lazy before, but you definitely get more out of people from the eight-hour day than you would have previously." Plus, profits are up. Documents shown to Insider confirm that the company has seen about a 29% increase in profits, after taxes, from last June. While correlation doesn't necessarily equal causation, Blackwell said leaders are pleased the shorter week hasn't gotten in the way of growth. In addition to profits and increased productivity, Blackwell also said that she and her employees are getting more out of their free time. "A lot of people have mentioned that they've taken up a new hobby — one of the girls out there is learning to play the piano on her day off." Blackwell spends her Wednesdays off doing chores so that she can spend more time with her family on the weekends. "We do paddleboarding, we're kind of active like that," she said. "If the weather permits, we just get out and about." Generational attitudes about work Blackwell said that when she told her father about Girling Jones' plan to cut out a day of the work week, he was dubious that it would be effective. "My parents have this stoicism about them," she said, saying that her father's view was that "the more people work, the more they're deserving of promotions and results." Her father worked in sales at an electrical company, and Blackwell said that his mentality was "the more you work, the more you get out of a job." But 4 Day Week Global is betting that it's time for a shift in that sort of thinking. "A hundred years ago, we moved from working six day weeks to five," the organization says on its website. "And we're overdue for an update." Read the original article on Business Insider.....»»

Category: dealsSource: nytJul 4th, 2022

These 46 pitch decks helped fintechs disrupting trading, investing, and banking raise millions in funding

Looking for examples of real fintech pitch decks? Check out pitch decks that Qolo, Lance, and other startups used to raise money from VCs. Check out these pitch decks for examples of fintech founders sold their vision.Yulia Reznikov/Getty Images Insider has been tracking the next wave of hot new startups that are blending finance and tech.  Check out these pitch decks to see how fintech founders sold their vision. See more stories on Insider's business page. Fintech funding has been on a tear.In 2021, fintech funding hit a record $132 billion globally, according to CB Insights, more than double 2020's mark.Insider has been tracking the next wave of hot new startups that are blending finance and tech. Check out these pitch decks to see how fintech founders are selling their vision and nabbing big bucks in the process. You'll see new financial tech geared at freelancers, fresh twists on digital banking, and innovation aimed at streamlining customer onboarding. New twists on digital bankingZach Bruhnke, cofounder and CEO of HMBradleyHMBradleyConsumers are getting used to the idea of branch-less banking, a trend that startup digital-only banks like Chime, N26, and Varo have benefited from. The majority of these fintechs target those who are underbanked, and rely on usage of their debit cards to make money off interchange. But fellow startup HMBradley has a different business model. "Our thesis going in was that we don't swipe our debit cards all that often, and we don't think the customer base that we're focusing on does either," Zach Bruhnke, cofounder and CEO of HMBradley, told Insider. "A lot of our customer base uses credit cards on a daily basis."Instead, the startup is aiming to build clientele with stable deposits. As a result, the bank is offering interest-rate tiers depending on how much a customer saves of their direct deposit.Notably, the rate tiers are dependent on the percentage of savings, not the net amount. "We'll pay you more when you save more of what comes in," Bruhnke said. "We didn't want to segment customers by how much money they had. So it was always going to be about a percentage of income. That was really important to us."Check out the 14-page pitch deck fintech HMBradley, a neobank offering interest rates as high as 3%, used to raise an $18.25 million Series APersonal finance is only a text awayYinon Ravid, the chief executive and cofounder of Albert.AlbertThe COVID-19 pandemic has underscored the growing preference of mobile banking as customers get comfortable managing their finances online.The financial app Albert has seen a similar jump in activity. Currently counting more than six million members, deposits in Albert's savings offering doubled from the start of the pandemic in March 2020 to May of this year, from $350 million to $700 million, according to new numbers released by the company. Founded in 2015, Albert offers automated budgeting and savings tools alongside guided investment portfolios. It's looked to differentiate itself through personalized features, like the ability for customers to text human financial experts.Budgeting and saving features are free on Albert. But for more tailored financial advice, customers pay a subscription fee that's a pay-what-you-can model, between $4 and $14 a month. And Albert's now banking on a new tool to bring together its investing, savings, and budgeting tools.Fintech Albert used this 10-page pitch deck to raise a $100 million Series C from General Atlantic and CapitalG 'A bank for immigrants'Priyank Singh and Rohit Mittal are the cofounders of Stilt.StiltRohit Mittal remembers the difficulties he faced when he first arrived in the United States a decade ago as a master's student at Columbia University.As an immigrant from India, Mittal had no credit score in the US and had difficulty integrating into the financial system. Mittal even struggled to get approved to rent an apartment and couch-surfed until he found a roommate willing to offer him space in his apartment in the New York neighborhood Morningside Heights.That roommate was Priyank Singh, who would go on to become Mittal's cofounder when the two started Stilt, a financial-technology company designed to address the problems Mittal faced when he arrived in the US.Stilt, which calls itself "a bank for immigrants," does not require a social security number or credit history to access its offerings, including unsecured personal loans.Instead of relying on traditional metrics like a credit score, Stilt uses data such as education and employment to predict an individual's future income stability and cash flow before issuing a loan. Stilt has seen its loan volume grow by 500% in the past 12 months, and the startup has loaned to immigrants from 160 countries since its launch. Here are the 15 slides Stilt, which calls itself 'a bank for immigrants,' used to raise a $14 million Series AAn IRA for alternativesHenry Yoshida is the co-founder and CEO of retirement fintech startup Rocket Dollar.Rocket DollarFintech startup Rocket Dollar, which helps users invest their individual retirement account (IRA) dollars into alternative assets, just raised $8 million for its Series A round, the company announced on Thursday.Park West Asset Management led the round, with participation from investors including Hyphen Capital, which focuses on backing Asian American entrepreneurs, and crypto exchange Kraken's venture arm. Co-founded in 2018 by CEO Henry Yoshida, CTO Rick Dude, and VP of marketing Thomas Young, Rocket Dollar now has over $350 million in assets under management on its platform. Yoshida sold his first startup, a roboadvisor called Honest Dollar, to Goldman Sachs' investment management division for an estimated $20 million.Yoshida told Insider that while ultra-high net worth investors have been investing self-directed retirement account dollars into alternative assets like real estate, private equity, and cryptocurrency, average investors have not historically been able to access the same opportunities to invest IRA dollars in alternative assets through traditional platforms.Here's the 34-page pitch deck a fintech that helps users invest their retirement savings in crypto and real estate assets used to nab $8 millionA trading app for activismAntoine Argouges, CEO and founder of TulipshareTulipshareAn up-and-coming fintech is taking aim at some of the world's largest corporations by empowering retail investors to push for social and environmental change by pooling their shareholder rights.London-based Tulipshare lets individuals in the UK invest as little as one pound in publicly-traded company stocks. The upstart combines individuals' shareholder rights with other like-minded investors to advocate for environmental, social, and corporate governance change at firms like JPMorgan, Apple, and Amazon.The goal is to achieve a higher number of shares to maximize the number of votes that can be submitted at shareholder meetings. Already a regulated broker-dealer in the UK, Tulipshare recently applied for registration as a broker-dealer in the US. "If you ask your friends and family if they've ever voted on shareholder resolutions, the answer will probably be close to zero," CEO and founder Antoine Argouges told Insider. "I started Tulipshare to utilize shareholder rights to bring about positive corporate change that has an impact on people's lives and our planet — what's more powerful than money to change the system we live in?"Check out the 14-page pitch deck from Tulipshare, a trading app that lets users pool their shareholder votes for activism campaignsDigital tools for independent financial advisorsJason Wenk, founder and CEO of AltruistAltruistJason Wenk started his career at Morgan Stanley in investment research over 20 years ago. Now, he's running a company that is hoping to broaden access to financial advice for less-wealthy individuals. The startup raised $50 million in Series B funding led by Insight Partners with participation from investors Vanguard and Venrock. The round brings the Los Angeles-based startup's total funding to just under $67 million.Founded in 2018, Altruist is a digital brokerage built for independent financial advisors, intended to be an "all-in-one" platform that unites custodial functions, portfolio accounting, and a client-facing portal. It allows advisors to open accounts, invest, build models, report, trade (including fractional shares), and bill clients through an interface that can advisors time by eliminating mundane operational tasks.Altruist aims to make personalized financial advice less expensive, more efficient, and more inclusive through the platform, which is designed for registered investment advisors (RIAs), a growing segment of the wealth management industry. Here's the pitch deck for Altruist, a wealth tech challenging custodians Fidelity and Charles Schwab, that raised $50 million from Vanguard and InsightRethinking debt collection Jason Saltzman, founder and CEO of ReliefReliefFor lenders, debt collection is largely automated. But for people who owe money on their credit cards, it can be a confusing and stressful process.  Relief is looking to change that. Its app automates the credit-card debt collection process for users, negotiating with lenders and collectors to settle outstanding balances on their behalf. The fintech just launched and closed a $2 million seed round led by Collaborative Ventures. Relief's fundraising experience was a bit different to most. Its pitch deck, which it shared with one investor via Google Slides, went viral. It set out to raise a $1 million seed round, but ended up doubling that and giving some investors money back to make room for others.Check out a 15-page pitch deck that went viral and helped a credit-card debt collection startup land a $2 million seed roundHelping small banks lendTKCollateralEdgeFor large corporations with a track record of tapping the credit markets, taking out debt is a well-structured and clear process handled by the nation's biggest investment banks and teams of accountants. But smaller, middle-market companies — typically those with annual revenues ranging up to $1 billion — are typically served by regional and community banks that don't always have the capacity to adequately measure the risk of loans or price them competitively. Per the National Center for the Middle Market, 200,000 companies fall into this range, accounting for roughly 33% of US private sector GDP and employment.Dallas-based fintech CollateralEdge works with these banks — typically those with between $1 billion and $50 billion in assets — to help analyze and price slices of commercial and industrial loans that previously might have gone unserved by smaller lenders.On October 20th, CollateralEdge announced a $3.5 million seed round led by Dallas venture fund Perot Jain with participation from Kneeland Youngblood (a founder of the healthcare-focused private-equity firm Pharos Capital) and other individual investors.Here's the 10-page deck CollateralEdge, a fintech streamlining how small banks lend to businesses, used to raise a $3.5 million seed roundA new way to assess creditworthinessPinwheel founders Curtis Lee, Kurt Lin, and Anish Basu.PinwheelGrowing up, Kurt Lin never saw his father get frustrated. A "traditional, stoic figure," Lin said his father immigrated to the United States in the 1970s. Becoming part of the financial system proved even more difficult than assimilating into a new culture.Lin recalled visiting bank after bank with his father as a child, watching as his father's applications for a mortgage were denied due to his lack of credit history. "That was the first time in my life I really saw him crack," Lin told Insider. "The system doesn't work for a lot of people — including my dad," he added. Lin would find a solution to his father's problem years later while working with Anish Basu, and Curtis Lee on an automated health savings account. The trio realized the payroll data integrations they were working on could be the basis of a product that would help lenders work with consumers without strong credit histories."That's when the lightbulb hit," said Lin, Pinwheel's CEO.In 2018, Lin, Basu, and Lee founded Pinwheel, an application-programming interface that shares payroll data to help both fintechs and traditional lenders serve consumers with limited or poor credit, who have historically struggled to access financial products. Here's the 9-page deck that Pinwheel, a fintech helping lenders tap into payroll data to serve consumers with little to no credit, used to raise a $50 million Series BAn alternative auto lenderTricolorAn alternative auto lender that caters to thin- and no-credit Hispanic borrowers is planning a national expansion after scoring a $90 million investment from BlackRock-managed funds. Tricolor is a Dallas-based auto lender that is a community development financial institution. It uses a proprietary artificial-intelligence engine that decisions each customer based on more than 100 data points, such as proof of income. Half of Tricolor's customers have a FICO score, and less than 12% have scores above 650, yet the average customer has lived in the US for 15 years, according to the deck.A 2017 survey by the Federal Deposit Insurance Corporation found 31.5% of Hispanic households had no mainstream credit compared to 14.4% of white households. "For decades, the deck has been stacked against low income or credit invisible Hispanics in the United States when it comes to the purchase and financing of a used vehicle," Daniel Chu, founder and CEO of Tricolor, said in a statement announcing the raise.An auto lender that caters to underbanked Hispanics used this 25-page deck to raise $90 million from BlackRock investors A new way to access credit The TomoCredit teamTomoCreditKristy Kim knows first-hand the challenge of obtaining credit in the US without an established credit history. Kim, who came to the US from South Korea, couldn't initially get access to credit despite having a job in investment banking after graduating college. "I was in my early twenties, I had a good income, my job was in investment banking but I could not get approved for anything," Kim told Insider. "Many young professionals like me, we deserve an opportunity to be considered but just because we didn't have a Fico, we weren't given a chance to even apply," she added.Kim started TomoCredit in 2018 to help others like herself gain access to consumer credit. TomoCredit spent three years building an internal algorithm to underwrite customers based on cash flow, rather than a credit score.TomoCredit, a fintech that lends to thin- and no-credit borrowers, used this 17-page pitch deck to raise its $10 million Series AHelping streamline how debts are repaidMethod Financial cofounders Jose Bethancourt and Marco del Carmen.Method FinancialWhen Jose Bethancourt graduated from the University of Texas at Austin in May 2019, he faced the same question that confronts over 43 million Americans: How would he repay his student loans?The problem led Bethancourt on a nearly two-year journey that culminated in the creation of a startup aimed at making it easier for consumers to more seamlessly pay off all kinds of debt.  Initially, Bethancourt and fellow UT grad Marco del Carmen built GradJoy, an app that helped users better understand how to manage student loan repayment and other financial habits. GradJoy was accepted into Y Combinator in the summer of 2019. But the duo quickly realized the real benefit to users would be helping them move money to make payments instead of simply offering recommendations."When we started GradJoy, we thought, 'Oh, we'll just give advice — we don't think people are comfortable with us touching their student loans,' and then we realized that people were saying, 'Hey, just move the money — if you think I should pay extra, then I'll pay extra.' So that's kind of the movement that we've seen, just, everybody's more comfortable with fintechs doing what's best for them," Bethancourt told Insider. Here is the 11-slide pitch deck Method Financial, a Y Combinator-backed fintech making debt repayment easier, used to raise $2.5 million in pre-seed fundingQuantum computing made easyQC Ware CEO Matt Johnson.QC WareEven though banks and hedge funds are still several years out from adding quantum computing to their tech arsenals, that hasn't stopped Wall Street giants from investing time and money into the emerging technology class. And momentum for QC Ware, a startup looking to cut the time and resources it takes to use quantum computing, is accelerating. The fintech secured a $25 million Series B on September 29 co-led by Koch Disruptive Technologies and Covestro with participation from D.E. Shaw, Citi, and Samsung Ventures.QC Ware, founded in 2014, builds quantum algorithms for the likes of Goldman Sachs (which led the fintech's Series A), Airbus, and BMW Group. The algorithms, which are effectively code bases that include quantum processing elements, can run on any of the four main public-cloud providers.Quantum computing allows companies to do complex calculations faster than traditional computers by using a form of physics that runs on quantum bits as opposed to the traditional 1s and 0s that computers use. This is especially helpful in banking for risk analytics or algorithmic trading, where executing calculations milliseconds faster than the competition can give firms a leg up. Here's the 20-page deck QC Ware, a fintech making quantum computing more accessible, used to raised its $25 million Series BSimplifying quant modelsKirat Singh and Mark Higgins, Beacon's cofounders.BeaconA fintech that helps financial institutions use quantitative models to streamline their businesses and improve risk management is catching the attention, and capital, of some of the country's biggest investment managers.Beacon Platform, founded in 2014, is a fintech that builds applications and tools to help banks, asset managers, and trading firms quickly integrate quantitative models that can help with analyzing risk, ensuring compliance, and improving operational efficiency. The company raised its Series C on Wednesday, scoring a $56 million investment led by Warburg Pincus with support from Blackstone Innovations Investments, PIMCO, and Global Atlantic. Blackstone, PIMCO, and Global Atlantic are also users of Beacon's tech, as are the Commonwealth Bank of Australia and Shell New Energies, a division of Royal Dutch Shell, among others.The fintech provides a shortcut for firms looking to use quantitative modelling and data science across various aspects of their businesses, a process that can often take considerable resources if done solo.Here's the 20-page pitch deck Beacon, a fintech helping Wall Street better analyze risk and data, used to raise $56 million from Warburg Pincus, Blackstone, and PIMCOSussing out bad actorsFrom left to right: Cofounders CTO David Movshovitz, CEO Doron Hendler, and chief architect Adi DeGaniRevealSecurityAn encounter with an impersonation hacker led Doron Hendler to found RevealSecurity, a Tel Aviv-based cybersecurity startup that monitors for insider threats.Two years ago, a woman impersonating an insurance-agency representative called Hendler and convinced him that he made a mistake with his recent health insurance policy upgrade. She got him to share his login information for his insurer's website, even getting him to give the one-time passcode sent to his phone. Once the hacker got what she needed, she disconnected the call, prompting Hendler to call back. When no one picked up the phone, he realized he had been conned.He immediately called his insurance company to check on his account. Nothing seemed out of place to the representative. But Hendler, who was previously a vice president of a software company, suspected something intangible could have been collected, so he reset his credentials."The chief of information security, who was on the call, he asked me, 'So, how do you want me to identify you? You gave your credentials; you gave your ID; you gave the one time password. How the hell can I identify that it's not you?' And I told him, 'But I never behave like this,'" Hendler recalled of the conversation.RevealSecurity, a Tel Aviv-based cyber startup that tracks user behavior for abnormalities, used this 27-page deck to raise its Series AA new data feed for bond tradingMark Lennihan/APFor years, the only way investors could figure out the going price of a corporate bond was calling up a dealer on the phone. The rise of electronic trading has streamlined that process, but data can still be hard to come by sometimes. A startup founded by a former Goldman Sachs exec has big plans to change that. BondCliQ is a fintech that provides a data feed of pre-trade pricing quotes for the corporate bond market. Founded by Chris White, the creator of Goldman Sachs' defunct corporate-bond-trading system, BondCliQ strives to bring transparency to a market that has traditionally kept such data close to the vest. Banks, which typically serve as the dealers of corporate bonds, have historically kept pre-trade quotes hidden from other dealers to maintain a competitive advantage.But tech advancements and the rise of electronic marketplaces have shifted power dynamics into the hands of buy-side firms, like hedge funds and asset managers. The investors are now able to get a fuller picture of the market by aggregating price quotes directly from dealers or via vendors.Here's the 9-page pitch deck that BondCliQ, a fintech looking to bring more data and transparency to bond trading, used to raise its Series AFraud prevention for lenders and insurersFiordaliso/Getty ImagesOnboarding new customers with ease is key for any financial institution or retailer. The more friction you add, the more likely consumers are to abandon the entire process.But preventing fraud is also a priority, and that's where Neuro-ID comes in. The startup analyzes what it calls "digital body language," or, the way users scroll, type, and tap. Using that data, Neuro-ID can identify fraudulent users before they create an account. It's built for banks, lenders, insurers, and e-commerce players."The train has left the station for digital transformation, but there's a massive opportunity to try to replicate all those communications that we used to have when we did business in-person, all those tells that we would get verbally and non-verbally on whether or not someone was trustworthy," Neuro-ID CEO Jack Alton told Insider.Founded in 2014, the startup's pitch is twofold: Neuro-ID can save companies money by identifying fraud early, and help increase user conversion by making the onboarding process more seamless. In December Neuro-ID closed a $7 million Series A, co-led by Fin VC and TTV Capital, with participation from Canapi Ventures. With 30 employees, Neuro-ID is using the fresh funding to grow its team and create additional tools to be more self-serving for customers.Here's the 11-slide pitch deck a startup that analyzes consumers' digital behavior to fight fraud used to raise a $7 million Series AAI-powered tools to spot phony online reviews FakespotMarketplaces like Amazon and eBay host millions of third-party sellers, and their algorithms will often boost items in search based on consumer sentiment, which is largely based on reviews. But many third-party sellers use fake reviews often bought from click farms to boost their items, some of which are counterfeit or misrepresented to consumers.That's where Fakespot comes in. With its Chrome extension, it warns users of sellers using potentially fake reviews to boost sales and can identify fraudulent sellers. Fakespot is currently compatible with Amazon, BestBuy, eBay, Sephora, Steam, and Walmart."There are promotional reviews written by humans and bot-generated reviews written by robots or review farms," Fakespot founder and CEO Saoud Khalifah told Insider. "Our AI system has been built to detect both categories with very high accuracy."Fakespot's AI learns via reviews data available on marketplace websites, and uses natural-language processing to identify if reviews are genuine. Fakespot also looks at things like whether the number of positive reviews are plausible given how long a seller has been active.Fakespot, a startup that helps shoppers detect robot-generated reviews and phony sellers on Amazon and Shopify, used this pitch deck to nab a $4 million Series AHelping fintechs manage dataProper Finance co-founders Travis Gibson (left) and Kyle MaloneyProper FinanceAs the flow of data becomes evermore crucial for fintechs, from the strappy startup to the established powerhouse, a thorny issue in the back office is becoming increasingly complex.Even though fintechs are known for their sleek front ends, the back end is often quite the opposite. Behind that streamlined interface can be a mosaic of different partner integrations — be it with banks, payments players and networks, or software vendors — with a channel of data running between them. Two people who know that better than the average are Kyle Maloney and Travis Gibson, two former employees of Marqeta, a fintech that provides other fintechs with payments processing and card issuance. "Take an established neobank for example. They'll likely have one or two card issuers, two to three bank partners, ACH processing for direct deposits and payouts, mobile check deposits, peer-to-peer payments, and lending," Gibson told Insider. Here's the 12-page pitch deck a startup helping fintechs manage their data used to score a $4.3 million seed from investors like Redpoint Ventures and Y CombinatorE-commerce focused business bankingMichael Rangel, cofounder and CEO, and Tyler McIntyre, cofounder and CTO of Novo.Kristelle Boulos PhotographyBusiness banking is a hot market in fintech. And it seems investors can't get enough.Novo, the digital banking fintech aimed at small e-commerce businesses, raised a $40.7 million Series A led by Valar Ventures in June. Since its launch in 2018, Novo has signed up 100,000 small businesses. Beyond bank accounts, it offers expense management, a corporate card, and integrates with e-commerce infrastructure players like Shopify, Stripe, and Wise.Founded in 2018, Novo was based in New York City, but has since moved its headquarters to Miami. Here's the 12-page pitch deck e-commerce banking startup Novo used to raise its $40 million Series AShopify for embedded financeProductfy CEO and founder, Duy VoProductfyProductfy is looking to break into embedded finance by becoming the Shopify of back-end banking services.Embedded finance — integrating banking services in non-financial settings — has taken hold in the e-commerce world. But Productfy is going after a different kind of customer in churches, universities, and nonprofits.The San Jose, Calif.-based upstart aims to help non-finance companies offer their own banking products. Productfy can help customers launch finance features in as little as a week and without additional engineering resources or background knowledge of banking compliance or legal requirements, Productfy founder and CEO Duy Vo told Insider. "You don't need an engineer to stand up Shopify, right? You can be someone who's just creating art and you can use Shopify to build your own online store," Vo said, adding that Productfy is looking to take that user experience and replicate it for banking services.Here's the 15-page pitch deck Productfy, a fintech looking to be the Shopify of embedded finance, used to nab a $16 million Series ADeploying algorithms and automation to small-business financingJustin Straight and Bernard Worthy, LoanWell co-foundersLoanWellBernard Worthy and Justin Straight, the founders of LoanWell, want to break down barriers to financing for small and medium-size businesses — and they've got algorithms and automation in their tech arsenals that they hope will do it.Worthy, the company's CEO, and Straight, its chief operating and financial officer, are powering community-focused lenders to fill a gap in the SMB financing world by boosting access to loans under $100,000. And the upstart is known for catching the attention, and dollars, of mission-driven investors. LoanWell closed a $3 million seed financing round in December led by Impact America Fund with participation from SoftBank's SB Opportunity Fund and Collab Capital.LoanWell automates the financing process — from underwriting and origination, to money movement and servicing — which shaves down an up-to-90-day process to 30 days or even same-day with some LoanWell lenders, Worthy said. SMBs rely on these loans to process quickly after two years of financial uncertainty. But the pandemic illustrated how time-consuming and expensive SMB financing can be, highlighted by efforts like the federal government's Paycheck Protection Program.Community banks, once the lifeline to capital for many local businesses, continue to shutter. And demands for smaller loan amounts remain largely unmet. More than half of business-loan applicants sought $100,000 or less, according to 2018 data from the Federal Reserve. But the average small-business bank loan was closer to six times that amount, according to the latest data from a now discontinued Federal Reserve survey.Here's the 14-page pitch deck LoanWell used to raise $3 million from investors like SoftBank.Branded cards for SMBsJennifer Glaspie-Lundstrom is the cofounder and CEO of Tandym.TandymJennifer Glaspie-Lundstrom is no stranger to the private-label credit-card business. As a former Capital One exec, she worked in both the card giant's co-brand partnerships division and its tech organization during her seven years at the company.Now, Glaspie-Lundstrom is hoping to use that experience to innovate a sector that was initially created in malls decades ago.Glaspie-Lundstrom is the cofounder and CEO of Tandym, which offers private-label digital credit cards to merchants. Store and private-label credit cards aren't a new concept, but Tandym is targeting small- and medium-sized merchants with less than $1 billion in annual revenue. Glaspie-Lundstrom said that group often struggles to offer private-label credit due to the expense of working with legacy players."What you have is this example of a very valuable product type that merchants love and their customers love, but a huge, untapped market that has heretofore been unserved, and so that's what we're doing with Tandym," Glaspi-Lundstrom told Insider.A former Capital One exec used this deck to raise $60 million for a startup helping SMBs launch their own branded credit cardsCatering to 'micro businesses'Stefanie Sample is the founder and CEO of FundidFundidStartups aiming to simplify the often-complex world of corporate cards have boomed in recent years.Business-finance management startup Brex was last valued at $12.3 billion after raising $300 million last year. Startup card provider Ramp announced an $8.1 billion valuation in March after growing its revenue nearly 10x in 2021. Divvy, a small business card provider, was acquired by Bill.com in May 2021 for approximately $2.5 billion.But despite how hot the market has gotten, Stefanie Sample said she ended up working in the space by accident. Sample is the founder and CEO of Fundid, a new fintech that provides credit and lending products to small businesses.This May, Fundid announced a $3.25 million seed round led by Nevcaut Ventures. Additional investors include the Artemis Fund and Builders and Backers. The funding announcement capped off the company's first year: Sample introduced the Fundid concept in April 2021, launched its website in May, and began raising capital in August."I never meant to do Fundid," Sample told Insider. "I never meant to do something that was venture-backed."Read the 12-page deck used by Fundid, a fintech offering credit and lending tools for 'micro businesses'Embedded payments for SMBsThe Highnote teamHighnoteBranded cards have long been a way for merchants with the appropriate bank relationships to create additional revenue and build customer loyalty. The rise of embedded payments, or the ability to shop and pay in a seamless experience within a single app, has broadened the number of companies looking to launch branded cards.Highnote is a startup that helps small to mid-sized merchants roll out their own debit and pre-paid digital cards. The fintech emerged from stealth on Tuesday to announce it raised $54 million in seed and Series A funding.Here's the 12-page deck Highnote, a startup helping SMBs embed payments, used to raise $54 million in seed and Series A fundingSpeeding up loans for government contractors OppZo cofounders Warren Reed and Randy GarrettOppZoThe massive market for federal government contracts approached $700 billion in 2020, and it's likely to grow as spending accelerates amid an ongoing push for investment in the nation's infrastructure. Many of those dollars flow to small-and-medium sized businesses, even though larger corporations are awarded the bulk of contracts by volume. Of the roughly $680 billion in federal contracts awarded in 2020, roughly a quarter, according to federal guidelines, or some $146 billion that year, went to smaller businesses.But peeking under the hood of the procurement process, the cofounders of OppZo — Randy Garrett and Warren Reed — saw an opportunity to streamline how smaller-sized businesses can leverage those contracts to tap in to capital.  Securing a deal is "a government contractor's best day and their worst day," as Garrett, OppZo's president, likes to put it."At that point they need to pay vendors and hire folks to start the contract. And they may not get their first contract payment from the government for as long as 120 days," Reed, the startup's CEO,  told Insider. Check out the 12-page pitch deck OppZo, a fintech that has figured out how to speed up loans to small government contractors, used to raise $260 million in equity and debtHelping small businesses manage their taxesComplYant's founder Shiloh Jackson wants to help people be present in their bookkeeping.ComplYantAfter 14 years in tax accounting, Shiloh Johnson had formed a core philosophy around corporate accounting: everyone deserves to understand their business's money and business owners need to be present in their bookkeeping process.She wanted to help small businesses understand "this is why you need to do what you're doing and why you have to change the way you think about tax and be present in your bookkeeping process," she told Insider. The Los Angeles native wanted small businesses to not only understand business tax no matter their size but also to find the tools they needed to prepare their taxes in one spot. So Johnson developed a software platform that provides just that.The 13-page pitch deck ComplYant used to nab $4 million that details the tax startup's plan to be Turbotax, Quickbooks, and Xero rolled into one for small business ownersAutomating accounting ops for SMBsDecimal CEO Matt Tait.DecimalSmall- and medium-sized businesses can rely on any number of payroll, expense management, bill pay, and corporate-card startups promising to automate parts of their financial workflow. Smaller firms have adopted this corporate-financial software en masse, boosting growth throughout the pandemic for relatively new entrants like Ramp and massive, industry stalwarts like Intuit. But it's no easy task to connect all of those tools into one, seamless process. And while accounting operations might be far from where many startup founders want to focus their time, having efficient back-end finances does mean time — and capital — freed up to spend elsewhere. For Decimal CEO Matt Tait, there's ample opportunity in "the boring stuff you have to do to survive as a company," he told Insider. Launched in 2020, Decimal provides a back-end tech layer that small- and medium-sized businesses can use to integrate their accounting and business-management software tools in one place.On Wednesday, Decimal announced a $9 million seed fundraising round led by Minneapolis-based Arthur Ventures, alongside Service Providers Capital and other angel investors. See the 13-page pitch deck for Decimal, a startup automating accounting ops for small businessesInvoice financing for SMBsStacey Abrams and Lara Hodgson, Now co-foundersNowAbout a decade ago, politician Stacey Abrams and entrepreneur Lara Hodgson were forced to fold their startup because of a kink in the supply chain — but not in the traditional sense.Nourish, which made spill-proof bottled water for children, had grown quickly from selling to small retailers to national ones. And while that may sound like a feather in the small business' cap, there was a hang-up."It was taking longer and longer to get paid, and as you can imagine, you deliver the product and then you wait and you wait, but meanwhile you have to pay your employees and you have to pay your vendors," Hodgson told Insider. "Waiting to get paid was constraining our ability to grow."While it's not unusual for small businesses to grapple with working capital issues, the dust was still settling from the Great Recession. Abrams and Hodgson couldn't secure a line of credit or use financing tools like factoring to solve their problem. The two entrepreneurs were forced to close Nourish in 2012, but along the way they recognized a disconnect in the system.  "Why are we the ones borrowing money, when in fact we're the lender here because every time you send an invoice to a customer, you've essentially extended a free loan to that customer by letting them pay later," Hodgson said. "And the only reason why we were going to need to possibly borrow money was because we had just given ours away for free to Whole Foods," she added.Check out the 7-page deck that Now, Stacey Abrams' fintech that wants to help small businesses 'grow fearlessly', used to raise $29 millionCheckout made easyRyan Breslow.Ryan BreslowAmazon has long dominated e-commerce with its one-click checkout flows, offering easier ways for consumers to shop online than its small-business competitors.Bolt gives small merchants tools to offer the same easy checkouts so they can compete with the likes of Amazon.The startup raised its $393 million Series D to continue adding its one-click checkout feature to merchants' own websites in October.Bolt markets to merchants themselves. But a big part of Bolt's pitch is its growing network of consumers — currently over 5.6 million — that use its features across multiple Bolt merchant customers. Roughly 5% of Bolt's transactions were network-driven in May, meaning users that signed up for a Bolt account on another retailer's website used it elsewhere. The network effects were even more pronounced in verticals like furniture, where 49% of transactions were driven by the Bolt network."The network effect is now unleashed with Bolt in full fury, and that triggered the raise," Bolt's founder and CEO Ryan Breslow told Insider.Here's the 12-page deck that one-click checkout Bolt used to outline its network of 5.6 million consumers and raise its Series DPayments infrastructure for fintechsQolo CEO and co-founder Patricia MontesiQoloThree years ago, Patricia Montesi realized there was a disconnect in the payments world. "A lot of new economy companies or fintech companies were looking to mesh up a lot of payment modalities that they weren't able to," Montesi, CEO and co-founder of Qolo, told Insider.Integrating various payment capabilities often meant tapping several different providers that had specializations in one product or service, she added, like debit card issuance or cross-border payments. "The way people were getting around that was that they were creating this spider web of fintech," she said, adding that "at the end of it all, they had this mess of suppliers and integrations and bank accounts."The 20-year payments veteran rounded up a group of three other co-founders — who together had more than a century of combined industry experience — to start Qolo, a business-to-business fintech that sought out to bundle back-end payment rails for other fintechs.Here's the 11-slide pitch deck a startup that provides payments infrastructure for other fintechs used to raise a $15 million Series ABetter use of payroll dataAtomic's Head of Markets, Lindsay DavisAtomicEmployees at companies large and small know the importance — and limitations — of how firms manage their payrolls. A new crop of startups are building the API pipes that connect companies and their employees to offer a greater level of visibility and flexibility when it comes to payroll data and employee verification. On Thursday, one of those names, Atomic, announced a $40 million Series B fundraising round co-led by Mercato Partners and Greylock, alongside Core Innovation Capital, Portage, and ATX Capital. The round follows Atomic's Series A round announced in October, when the startup raised a $22 million Series A from investors including Core Innovation Capital, Portage, and Greylock.Payroll startup Atomic just raised a $40 million Series B. Here's an internal deck detailing the fintech's approach to the red-hot payments space.Saving on vendor invoicesHoward Katzenberg, Glean's CEO and cofounderGleanWhen it comes to high-flying tech startups, headlines and investors typically tend to focus on industry "disruption" and the total addressable market a company is hoping to reach. Expense cutting as a way to boost growth typically isn't part of the conversation early on, and finance teams are viewed as cost centers relative to sales teams. But one fast-growing area of business payments has turned its focus to managing those costs. Startups like Ramp and established names like Bill.com have made their name offering automated expense-management systems. Now, one new fintech competitor, Glean, is looking to take that further by offering both automated payment services and tailored line-item accounts-payable insights driven by machine-learning models. Glean's CFO and founder, Howard Katzenberg, told Insider that the genesis of Glean was driven by his own personal experience managing the finance teams of startups, including mortgage lender Better.com, which Katzenberg left in 2019, and online small-business lender OnDeck. "As a CFO of high-growth companies, I spent a lot of time focused on revenue and I had amazing dashboards in real time where I could see what is going on top of the funnel, what's going on with conversion rates, what's going on in terms of pricing and attrition," Katzenberg told Insider. See the 15-slide pitch deck Glean, a startup using machine learning to find savings in vendor invoices, used to raise $10.8 million in seed fundingReal-estate management made easyAgora founders Noam Kahan, CTO, Bar Mor, CEO, and Lior Dolinski, CPOAgoraFor alternative asset managers of any type, the operations underpinning sales and investor communications are a crucial but often overlooked part of the business. Fund managers love to make bets on markets, not coordinate hundreds of wire transfers to clients each quarter or organize customer-relationship-management databases.Within the $10.6 trillion global market for professionally managed real-estate investing, that's where Tel Aviv and New York-based startup Agora hopes to make its mark.Founded in 2019, Agora offers a set of back-office, investor relations, and sales software tools that real-estate investment managers can plug into their workflows. On Wednesday, Agora announced a $9 million seed round, led by Israel-based venture firm Aleph, with participation from River Park Ventures and Maccabee Ventures. The funding comes on the heels of an October 2020 pre-seed fund raise worth $890,000, in which Maccabee also participated.Here's the 15-slide pitch deck that Agora, a startup helping real-estate investors manage communications and sales with their clients, used to raise a $9 million seed roundAccess to commercial real-estate investing LEX Markets cofounders and co-CEOs Drew Sterrett and Jesse Daugherty.LEX MarketsDrew Sterrett was structuring real-estate deals while working in private equity when he realized the inefficiencies that existed in the market. Only high-net worth individuals or accredited investors could participate in commercial real-estate deals. If they ever wanted to leave a partnership or sell their stake in a property, it was difficult to find another investor to replace them. Owners also struggled to sell minority stakes in their properties and didn't have many good options to recapitalize an asset if necessary.In short, the market had a high barrier to entry despite the fact it didn't always have enough participants to get deals done quickly. "Most investors don't have access to high-quality commercial real-estate investments. How do we have the oldest and largest asset class in the world and one of the largest wealth creators with no public and liquid market?" Sterrett told Insider. "It sort of seems like a no-brainer, and that this should have existed 50 or 60 years ago."This 15-page pitch deck helped LEX Markets, a startup making investing in commercial real estate more accessible, raise $15 millionInsurance goes digitalJamie Hale, CEO and cofounder of LadderLadderFintechs looking to transform how insurance policies are underwritten, issued, and experienced by customers have grown as new technology driven by digital trends and artificial intelligence shape the market. And while verticals like auto, homeowner's, and renter's insurance have seen their fair share of innovation from forward-thinking fintechs, one company has taken on the massive life-insurance market. Founded in 2017, Ladder uses a tech-driven approach to offer life insurance with a digital, end-to-end service that it says is more flexible, faster, and cost-effective than incumbent players.Life, annuity, and accident and health insurance within the US comprise a big chunk of the broader market. In 2020, premiums written on those policies totaled some $767 billion, compared to $144 billion for auto policies and $97 billion for homeowner's insurance.Here's the 12-page deck that Ladder, a startup disrupting the 'crown jewel' of the insurance market, used to nab $100 millionData science for commercial insuranceTanner Hackett, founder and CEO of CounterpartCounterpartThere's been no shortage of funds flowing into insurance-technology companies over the past few years. Private-market funding to insurtechs soared to $15.4 billion in 2021, a 90% increase compared to 2020. Some of the most well-known consumer insurtech names — from Oscar (which focuses on health insurance) to Metromile (which focuses on auto) — launched on the public markets last year, only to fall over time or be acquired as investors questioned the sustainability of their business models. In the commercial arena, however, the head of one insurtech company thinks there is still room to grow — especially for those catering to small businesses operating in an entirely new, pandemic-defined environment. "The bigger opportunity is in commercial lines," Tanner Hackett, the CEO of management liability insurer Counterpart, told Insider."Everywhere I poke, I'm like, 'Oh my goodness, we're still in 1.0, and all the other businesses I've built were on version three.' Insurance is still in 1.0, still managing from spreadsheets and PDFs," added Hackett, who also previously co-founded Button, which focuses on mobile marketing. See the 8-page pitch deck Counterpart, a startup disrupting commercial insurance with data science, used to raise a $30 million Series BSmarter insurance for multifamily propertiesItai Ben-Zaken, cofounder and CEO of Honeycomb.HoneycombA veteran of the online-insurance world is looking to revolutionize the way the industry prices risk for commercial properties with the help of artificial intelligence.Insurance companies typically send inspectors to properties before issuing policies to better understand how the building is maintained and identify potential risks or issues with it. It's a process that can be time-consuming, expensive, and inefficient, making it hard to justify for smaller commercial properties, like apartment and condo buildings.Insurtech Honeycomb is looking to fix that by using AI to analyze a combination of third-party data and photos submitted by customers through the startup's app to quickly identify any potential risks at a property and more accurately price policies."That whole physical inspection thing had really good things in it, but it wasn't really something that is scalable and, it's also expensive," Itai Ben-Zaken, Honeycomb's cofounder and CEO, told Insider. "The best way to see a property right now is Google street view. Google street view is usually two years old."Here's the 10-page Series A pitch deck used by Honeycomb, a startup that wants to revolutionize the $26 billion market for multifamily property insuranceHelping freelancers with their taxesJaideep Singh is the CEO and co-founder of FlyFin, an AI-driven tax preparation software program for freelancers.FlyFinSome people, particularly those with families or freelancing businesses, spend days searching for receipts for tax season, making tax preparation a time consuming and, at times, taxing experience. That's why in 2020 Jaideep Singh founded FlyFin, an artificial-intelligence tax preparation program for freelancers that helps people, as he puts it, "fly through their finances." FlyFin is set up to connect to a person's bank accounts, allowing the AI program to help users monitor for certain expenses that can be claimed on their taxes like business expenditures, the interest on mortgages, property taxes, or whatever else that might apply. "For most individuals, people have expenses distributed over multiple financial institutions. So we built an AI platform that is able to look at expenses, understand the individual, understand your profession, understand the freelance population at large, and start the categorization," Singh told Insider.Check out the 7-page pitch deck a startup helping freelancers manage their taxes used to nab $8 million in fundingDigital banking for freelancersJGalione/Getty ImagesLance is a new digital bank hoping to simplify the life of those workers by offering what it calls an "active" approach to business banking. "We found that every time we sat down with the existing tools and resources of our accountants and QuickBooks and spreadsheets, we just ended up getting tangled up in the whole experience of it," Lance cofounder and CEO Oona Rokyta told Insider. Lance offers subaccounts for personal salaries, withholdings, and savings to which freelancers can automatically allocate funds according to custom preset levels. It also offers an expense balance that's connected to automated tax withholdings.In May, Lance announced the closing of a $2.8 million seed round that saw participation from Barclays, BDMI, Great Oaks Capital, Imagination Capital, Techstars, DFJ Frontier, and others.Here's the 21-page pitch deck Lance, a digital bank for freelancers, used to raise a $2.8 million seed round from investors including BarclaysSoftware for managing freelancersWorksome cofounder and CEO Morten Petersen.WorksomeThe way people work has fundamentally changed over the past year, with more flexibility and many workers opting to freelance to maintain their work-from-home lifestyles.But managing a freelance or contractor workforce is often an administrative headache for employers. Worksome is a startup looking to eliminate all the extra work required for employers to adapt to more flexible working norms.Worksome started as a freelancer marketplace automating the process of matching qualified workers with the right jobs. But the team ultimately pivoted to a full suite of workforce management software, automating administrative burdens required to hire, pay, and account for contract workers.In May, Worksome closed a $13 million Series A backed by European angel investor Tommy Ahlers and Danish firm Lind & Risør.Here's the 21-slide pitch deck used by a startup that helps firms like Carlsberg and Deloitte manage freelancersPayments and operations support HoneyBook cofounders Dror Shimoni, Oz Alon, and Naama Alon.HoneyBookWhile countless small businesses have been harmed by the pandemic, self-employment and entrepreneurship have found ways to blossom as Americans started new ventures.Half of the US population may be freelance by 2027, according to a study commissioned by remote-work hiring platform Upwork. HoneyBook, a fintech startup that provides payment and operations support for freelancers, in May raised $155 million in funding and achieved unicorn status with its $1 billion-plus valuation.Durable Capital Partners led the Series D funding with other new investors including renowned hedge fund Tiger Global, Battery Ventures, Zeev Ventures, and 01 Advisors. Citi Ventures, Citigroup's startup investment arm that also backs fintech robo-advisor Betterment, participated as an existing investor in the round alongside Norwest Venture partners. The latest round brings the company's fundraising total to $227 million to date.Here's the 21-page pitch deck a Citi-backed fintech for freelancers used to raise $155 million from investors like hedge fund Tiger GlobalPay-as-you-go compliance for banks, fintechs, and crypto startupsNeepa Patel, Themis' founder and CEOThemisWhen Themis founder and CEO Neepa Patel set out to build a new compliance tool for banks, fintech startups, and crypto companies, she tapped into her own experience managing risk at some of the nation's biggest financial firms. Having worked as a bank regulator at the Office of the Comptroller of the Currency and in compliance at Morgan Stanley, Deutsche Bank, and the enterprise blockchain company R3, Patel was well-placed to assess the shortcomings in financial compliance software. But Patel, who left the corporate world to begin work on Themis in 2020, drew on more than just her own experience and frustrations to build the startup."It's not just me building a tool based on my personal pain points. I reached out to regulators. I reached out to bank compliance officers and members in the fintech community just to make sure that we're building it exactly how they do their work," Patel told Insider. "That was the biggest problem: No one built a tool that was reflective of how people do their work."Check out the 9-page pitch deck Themis, which offers pay-as-you-go compliance for banks, fintechs, and crypto startups, used to raise $9 million in seed fundingConnecting startups and investorsHum Capital cofounder and CEO Blair SilverbergHum CapitalBlair Silverberg is no stranger to fundraising.For six years, Silverberg was a venture capitalist at Draper Fisher Jurvetson and Private Credit Investments making bets on startups."I was meeting with thousands of founders in person each year, watching them one at a time go through this friction where they're meeting a ton of investors, and the investors are all asking the same questions," Silverberg told Insider. He switched gears about three years ago, moving to the opposite side of the metaphorical table, to start Hum Capital, which uses artificial intelligence to match investors with startups looking to fundraise.On August 31, the New York-based fintech announced its $9 million Series A. The round was led by Future Ventures with participation from Webb Investment Network, Wavemaker Partners, and Partech. This 11-page pitch deck helped Hum Capital, a fintech using AI to match investors with startups, raise a $9 million Series A.Helping LatAm startups get up to speedKamino cofounders Gut Fragoso, Rodrigo Perenha, Benjamin Gleason, and Gonzalo ParejoKaminoThere's more venture capital flowing into Latin America than ever before, but getting the funds in founders' hands is not exactly a simple process.In 2021, investors funneled $15.3 billion into Latin American companies, more than tripling the previous record of $4.9 billion in 2019. Fintech and e-commerce sectors drove funding, accounting for 39% and 25% of total funding, respectively.  However, for many startup founders in the region who have successfully sold their ideas and gotten investors on board, there's a patchwork of corporate structuring that's needed to access the funds, according to Benjamin Gleason, who was the chief financial officer at Groupon LatAm prior to cofounding Brazil-based fintech Kamino.It's a process Gleason and his three fellow Kamino cofounders have been through before as entrepreneurs and startup execs themselves. Most often, startups have to set up offshore financial accounts outside of Brazil, which "entails creating a Cayman [Islands] holding company, a Delaware LLC, and then connecting it to a local entity here and also opening US bank accounts for the Cayman entity, which is not trivial from a KYC perspective," said Gleason, who founded open-banking fintech Guiabolso in Sao Paulo. His partner, Gonzalo Parejo, experienced the same toils when he founded insurtech Bidu."Pretty much any international investor will usually ask for that," Gleason said, adding that investors typically cite liability issues."It's just a massive amount of bureaucracy, complexity, a lot of time from the founders. All of this just to get the money from the investor that wants to give them the money," he added.Here's the 8-page pitch deck Kamino, a fintech helping LatAm startups with everything from financing to corporate credit cards, used to raise a $6.1M pre-seed roundThe back-end tech for beautyDanielle Cohen-Shohet, CEO and founder of GlossGeniusGlossGeniusDanielle Cohen-Shohet might have started as a Goldman Sachs investment analyst, but at her core she was always a coder.After about three years at Goldman Sachs, Cohen-Shohet left the world of traditional finance to code her way into starting her own company in 2016. "There was a period of time where I did nothing, but eat, sleep, and code for a few weeks," Cohen-Shohet told Insider. Her technical edge and knowledge of the point-of-sale payment space led her to launch a software company focused on providing behind-the-scenes tech for beauty and wellness small businesses.Cohen-Shohet launched GlossGenius in 2017 to provide payments tech for hair stylists, nail technicians, blow-out bars, and other small businesses in the space.Here's the 11-page deck GlossGenius, a startup that provides back-end tech for the beauty industry, used to raise $16 millionRead the original article on Business Insider.....»»

Category: topSource: businessinsiderJun 30th, 2022

These 44 pitch decks helped fintechs disrupting trading, investing, and banking raise millions in funding

Looking for examples of real fintech pitch decks? Check out pitch decks that Qolo, Lance, and other startups used to raise money from VCs. Check out these pitch decks for examples of fintech founders sold their vision.Yulia Reznikov/Getty Images Insider has been tracking the next wave of hot new startups that are blending finance and tech.  Check out these pitch decks to see how fintech founders sold their vision. See more stories on Insider's business page. Fintech funding has been on a tear.In 2021, fintech funding hit a record $132 billion globally, according to CB Insights, more than double 2020's mark.Insider has been tracking the next wave of hot new startups that are blending finance and tech. Check out these pitch decks to see how fintech founders are selling their vision and nabbing big bucks in the process. You'll see new financial tech geared at freelancers, fresh twists on digital banking, and innovation aimed at streamlining customer onboarding. New twists on digital bankingZach Bruhnke, cofounder and CEO of HMBradleyHMBradleyConsumers are getting used to the idea of branch-less banking, a trend that startup digital-only banks like Chime, N26, and Varo have benefited from. The majority of these fintechs target those who are underbanked, and rely on usage of their debit cards to make money off interchange. But fellow startup HMBradley has a different business model. "Our thesis going in was that we don't swipe our debit cards all that often, and we don't think the customer base that we're focusing on does either," Zach Bruhnke, cofounder and CEO of HMBradley, told Insider. "A lot of our customer base uses credit cards on a daily basis."Instead, the startup is aiming to build clientele with stable deposits. As a result, the bank is offering interest-rate tiers depending on how much a customer saves of their direct deposit.Notably, the rate tiers are dependent on the percentage of savings, not the net amount. "We'll pay you more when you save more of what comes in," Bruhnke said. "We didn't want to segment customers by how much money they had. So it was always going to be about a percentage of income. That was really important to us."Check out the 14-page pitch deck fintech HMBradley, a neobank offering interest rates as high as 3%, used to raise an $18.25 million Series APersonal finance is only a text awayYinon Ravid, the chief executive and cofounder of Albert.AlbertThe COVID-19 pandemic has underscored the growing preference of mobile banking as customers get comfortable managing their finances online.The financial app Albert has seen a similar jump in activity. Currently counting more than six million members, deposits in Albert's savings offering doubled from the start of the pandemic in March 2020 to May of this year, from $350 million to $700 million, according to new numbers released by the company. Founded in 2015, Albert offers automated budgeting and savings tools alongside guided investment portfolios. It's looked to differentiate itself through personalized features, like the ability for customers to text human financial experts.Budgeting and saving features are free on Albert. But for more tailored financial advice, customers pay a subscription fee that's a pay-what-you-can model, between $4 and $14 a month. And Albert's now banking on a new tool to bring together its investing, savings, and budgeting tools.Fintech Albert used this 10-page pitch deck to raise a $100 million Series C from General Atlantic and CapitalG 'A bank for immigrants'Priyank Singh and Rohit Mittal are the cofounders of Stilt.StiltRohit Mittal remembers the difficulties he faced when he first arrived in the United States a decade ago as a master's student at Columbia University.As an immigrant from India, Mittal had no credit score in the US and had difficulty integrating into the financial system. Mittal even struggled to get approved to rent an apartment and couch-surfed until he found a roommate willing to offer him space in his apartment in the New York neighborhood Morningside Heights.That roommate was Priyank Singh, who would go on to become Mittal's cofounder when the two started Stilt, a financial-technology company designed to address the problems Mittal faced when he arrived in the US.Stilt, which calls itself "a bank for immigrants," does not require a social security number or credit history to access its offerings, including unsecured personal loans.Instead of relying on traditional metrics like a credit score, Stilt uses data such as education and employment to predict an individual's future income stability and cash flow before issuing a loan. Stilt has seen its loan volume grow by 500% in the past 12 months, and the startup has loaned to immigrants from 160 countries since its launch. Here are the 15 slides Stilt, which calls itself 'a bank for immigrants,' used to raise a $14 million Series AAn IRA for alternativesHenry Yoshida is the co-founder and CEO of retirement fintech startup Rocket Dollar.Rocket DollarFintech startup Rocket Dollar, which helps users invest their individual retirement account (IRA) dollars into alternative assets, just raised $8 million for its Series A round, the company announced on Thursday.Park West Asset Management led the round, with participation from investors including Hyphen Capital, which focuses on backing Asian American entrepreneurs, and crypto exchange Kraken's venture arm. Co-founded in 2018 by CEO Henry Yoshida, CTO Rick Dude, and VP of marketing Thomas Young, Rocket Dollar now has over $350 million in assets under management on its platform. Yoshida sold his first startup, a roboadvisor called Honest Dollar, to Goldman Sachs' investment management division for an estimated $20 million.Yoshida told Insider that while ultra-high net worth investors have been investing self-directed retirement account dollars into alternative assets like real estate, private equity, and cryptocurrency, average investors have not historically been able to access the same opportunities to invest IRA dollars in alternative assets through traditional platforms.Here's the 34-page pitch deck a fintech that helps users invest their retirement savings in crypto and real estate assets used to nab $8 millionA trading app for activismAntoine Argouges, CEO and founder of TulipshareTulipshareAn up-and-coming fintech is taking aim at some of the world's largest corporations by empowering retail investors to push for social and environmental change by pooling their shareholder rights.London-based Tulipshare lets individuals in the UK invest as little as one pound in publicly-traded company stocks. The upstart combines individuals' shareholder rights with other like-minded investors to advocate for environmental, social, and corporate governance change at firms like JPMorgan, Apple, and Amazon.The goal is to achieve a higher number of shares to maximize the number of votes that can be submitted at shareholder meetings. Already a regulated broker-dealer in the UK, Tulipshare recently applied for registration as a broker-dealer in the US. "If you ask your friends and family if they've ever voted on shareholder resolutions, the answer will probably be close to zero," CEO and founder Antoine Argouges told Insider. "I started Tulipshare to utilize shareholder rights to bring about positive corporate change that has an impact on people's lives and our planet — what's more powerful than money to change the system we live in?"Check out the 14-page pitch deck from Tulipshare, a trading app that lets users pool their shareholder votes for activism campaignsDigital tools for independent financial advisorsJason Wenk, founder and CEO of AltruistAltruistJason Wenk started his career at Morgan Stanley in investment research over 20 years ago. Now, he's running a company that is hoping to broaden access to financial advice for less-wealthy individuals. The startup raised $50 million in Series B funding led by Insight Partners with participation from investors Vanguard and Venrock. The round brings the Los Angeles-based startup's total funding to just under $67 million.Founded in 2018, Altruist is a digital brokerage built for independent financial advisors, intended to be an "all-in-one" platform that unites custodial functions, portfolio accounting, and a client-facing portal. It allows advisors to open accounts, invest, build models, report, trade (including fractional shares), and bill clients through an interface that can advisors time by eliminating mundane operational tasks.Altruist aims to make personalized financial advice less expensive, more efficient, and more inclusive through the platform, which is designed for registered investment advisors (RIAs), a growing segment of the wealth management industry. Here's the pitch deck for Altruist, a wealth tech challenging custodians Fidelity and Charles Schwab, that raised $50 million from Vanguard and InsightRethinking debt collection Jason Saltzman, founder and CEO of ReliefReliefFor lenders, debt collection is largely automated. But for people who owe money on their credit cards, it can be a confusing and stressful process.  Relief is looking to change that. Its app automates the credit-card debt collection process for users, negotiating with lenders and collectors to settle outstanding balances on their behalf. The fintech just launched and closed a $2 million seed round led by Collaborative Ventures. Relief's fundraising experience was a bit different to most. Its pitch deck, which it shared with one investor via Google Slides, went viral. It set out to raise a $1 million seed round, but ended up doubling that and giving some investors money back to make room for others.Check out a 15-page pitch deck that went viral and helped a credit-card debt collection startup land a $2 million seed roundHelping small banks lendTKCollateralEdgeFor large corporations with a track record of tapping the credit markets, taking out debt is a well-structured and clear process handled by the nation's biggest investment banks and teams of accountants. But smaller, middle-market companies — typically those with annual revenues ranging up to $1 billion — are typically served by regional and community banks that don't always have the capacity to adequately measure the risk of loans or price them competitively. Per the National Center for the Middle Market, 200,000 companies fall into this range, accounting for roughly 33% of US private sector GDP and employment.Dallas-based fintech CollateralEdge works with these banks — typically those with between $1 billion and $50 billion in assets — to help analyze and price slices of commercial and industrial loans that previously might have gone unserved by smaller lenders.On October 20th, CollateralEdge announced a $3.5 million seed round led by Dallas venture fund Perot Jain with participation from Kneeland Youngblood (a founder of the healthcare-focused private-equity firm Pharos Capital) and other individual investors.Here's the 10-page deck CollateralEdge, a fintech streamlining how small banks lend to businesses, used to raise a $3.5 million seed roundA new way to assess creditworthinessPinwheel founders Curtis Lee, Kurt Lin, and Anish Basu.PinwheelGrowing up, Kurt Lin never saw his father get frustrated. A "traditional, stoic figure," Lin said his father immigrated to the United States in the 1970s. Becoming part of the financial system proved even more difficult than assimilating into a new culture.Lin recalled visiting bank after bank with his father as a child, watching as his father's applications for a mortgage were denied due to his lack of credit history. "That was the first time in my life I really saw him crack," Lin told Insider. "The system doesn't work for a lot of people — including my dad," he added. Lin would find a solution to his father's problem years later while working with Anish Basu, and Curtis Lee on an automated health savings account. The trio realized the payroll data integrations they were working on could be the basis of a product that would help lenders work with consumers without strong credit histories."That's when the lightbulb hit," said Lin, Pinwheel's CEO.In 2018, Lin, Basu, and Lee founded Pinwheel, an application-programming interface that shares payroll data to help both fintechs and traditional lenders serve consumers with limited or poor credit, who have historically struggled to access financial products. Here's the 9-page deck that Pinwheel, a fintech helping lenders tap into payroll data to serve consumers with little to no credit, used to raise a $50 million Series BAn alternative auto lenderTricolorAn alternative auto lender that caters to thin- and no-credit Hispanic borrowers is planning a national expansion after scoring a $90 million investment from BlackRock-managed funds. Tricolor is a Dallas-based auto lender that is a community development financial institution. It uses a proprietary artificial-intelligence engine that decisions each customer based on more than 100 data points, such as proof of income. Half of Tricolor's customers have a FICO score, and less than 12% have scores above 650, yet the average customer has lived in the US for 15 years, according to the deck.A 2017 survey by the Federal Deposit Insurance Corporation found 31.5% of Hispanic households had no mainstream credit compared to 14.4% of white households. "For decades, the deck has been stacked against low income or credit invisible Hispanics in the United States when it comes to the purchase and financing of a used vehicle," Daniel Chu, founder and CEO of Tricolor, said in a statement announcing the raise.An auto lender that caters to underbanked Hispanics used this 25-page deck to raise $90 million from BlackRock investors A new way to access credit The TomoCredit teamTomoCreditKristy Kim knows first-hand the challenge of obtaining credit in the US without an established credit history. Kim, who came to the US from South Korea, couldn't initially get access to credit despite having a job in investment banking after graduating college. "I was in my early twenties, I had a good income, my job was in investment banking but I could not get approved for anything," Kim told Insider. "Many young professionals like me, we deserve an opportunity to be considered but just because we didn't have a Fico, we weren't given a chance to even apply," she added.Kim started TomoCredit in 2018 to help others like herself gain access to consumer credit. TomoCredit spent three years building an internal algorithm to underwrite customers based on cash flow, rather than a credit score.TomoCredit, a fintech that lends to thin- and no-credit borrowers, used this 17-page pitch deck to raise its $10 million Series AHelping streamline how debts are repaidMethod Financial cofounders Jose Bethancourt and Marco del Carmen.Method FinancialWhen Jose Bethancourt graduated from the University of Texas at Austin in May 2019, he faced the same question that confronts over 43 million Americans: How would he repay his student loans?The problem led Bethancourt on a nearly two-year journey that culminated in the creation of a startup aimed at making it easier for consumers to more seamlessly pay off all kinds of debt.  Initially, Bethancourt and fellow UT grad Marco del Carmen built GradJoy, an app that helped users better understand how to manage student loan repayment and other financial habits. GradJoy was accepted into Y Combinator in the summer of 2019. But the duo quickly realized the real benefit to users would be helping them move money to make payments instead of simply offering recommendations."When we started GradJoy, we thought, 'Oh, we'll just give advice — we don't think people are comfortable with us touching their student loans,' and then we realized that people were saying, 'Hey, just move the money — if you think I should pay extra, then I'll pay extra.' So that's kind of the movement that we've seen, just, everybody's more comfortable with fintechs doing what's best for them," Bethancourt told Insider. Here is the 11-slide pitch deck Method Financial, a Y Combinator-backed fintech making debt repayment easier, used to raise $2.5 million in pre-seed fundingQuantum computing made easyQC Ware CEO Matt Johnson.QC WareEven though banks and hedge funds are still several years out from adding quantum computing to their tech arsenals, that hasn't stopped Wall Street giants from investing time and money into the emerging technology class. And momentum for QC Ware, a startup looking to cut the time and resources it takes to use quantum computing, is accelerating. The fintech secured a $25 million Series B on September 29 co-led by Koch Disruptive Technologies and Covestro with participation from D.E. Shaw, Citi, and Samsung Ventures.QC Ware, founded in 2014, builds quantum algorithms for the likes of Goldman Sachs (which led the fintech's Series A), Airbus, and BMW Group. The algorithms, which are effectively code bases that include quantum processing elements, can run on any of the four main public-cloud providers.Quantum computing allows companies to do complex calculations faster than traditional computers by using a form of physics that runs on quantum bits as opposed to the traditional 1s and 0s that computers use. This is especially helpful in banking for risk analytics or algorithmic trading, where executing calculations milliseconds faster than the competition can give firms a leg up. Here's the 20-page deck QC Ware, a fintech making quantum computing more accessible, used to raised its $25 million Series BSimplifying quant modelsKirat Singh and Mark Higgins, Beacon's cofounders.BeaconA fintech that helps financial institutions use quantitative models to streamline their businesses and improve risk management is catching the attention, and capital, of some of the country's biggest investment managers.Beacon Platform, founded in 2014, is a fintech that builds applications and tools to help banks, asset managers, and trading firms quickly integrate quantitative models that can help with analyzing risk, ensuring compliance, and improving operational efficiency. The company raised its Series C on Wednesday, scoring a $56 million investment led by Warburg Pincus with support from Blackstone Innovations Investments, PIMCO, and Global Atlantic. Blackstone, PIMCO, and Global Atlantic are also users of Beacon's tech, as are the Commonwealth Bank of Australia and Shell New Energies, a division of Royal Dutch Shell, among others.The fintech provides a shortcut for firms looking to use quantitative modelling and data science across various aspects of their businesses, a process that can often take considerable resources if done solo.Here's the 20-page pitch deck Beacon, a fintech helping Wall Street better analyze risk and data, used to raise $56 million from Warburg Pincus, Blackstone, and PIMCOA new data feed for bond tradingMark Lennihan/APFor years, the only way investors could figure out the going price of a corporate bond was calling up a dealer on the phone. The rise of electronic trading has streamlined that process, but data can still be hard to come by sometimes. A startup founded by a former Goldman Sachs exec has big plans to change that. BondCliQ is a fintech that provides a data feed of pre-trade pricing quotes for the corporate bond market. Founded by Chris White, the creator of Goldman Sachs' defunct corporate-bond-trading system, BondCliQ strives to bring transparency to a market that has traditionally kept such data close to the vest. Banks, which typically serve as the dealers of corporate bonds, have historically kept pre-trade quotes hidden from other dealers to maintain a competitive advantage.But tech advancements and the rise of electronic marketplaces have shifted power dynamics into the hands of buy-side firms, like hedge funds and asset managers. The investors are now able to get a fuller picture of the market by aggregating price quotes directly from dealers or via vendors.Here's the 9-page pitch deck that BondCliQ, a fintech looking to bring more data and transparency to bond trading, used to raise its Series AFraud prevention for lenders and insurersFiordaliso/Getty ImagesOnboarding new customers with ease is key for any financial institution or retailer. The more friction you add, the more likely consumers are to abandon the entire process.But preventing fraud is also a priority, and that's where Neuro-ID comes in. The startup analyzes what it calls "digital body language," or, the way users scroll, type, and tap. Using that data, Neuro-ID can identify fraudulent users before they create an account. It's built for banks, lenders, insurers, and e-commerce players."The train has left the station for digital transformation, but there's a massive opportunity to try to replicate all those communications that we used to have when we did business in-person, all those tells that we would get verbally and non-verbally on whether or not someone was trustworthy," Neuro-ID CEO Jack Alton told Insider.Founded in 2014, the startup's pitch is twofold: Neuro-ID can save companies money by identifying fraud early, and help increase user conversion by making the onboarding process more seamless. In December Neuro-ID closed a $7 million Series A, co-led by Fin VC and TTV Capital, with participation from Canapi Ventures. With 30 employees, Neuro-ID is using the fresh funding to grow its team and create additional tools to be more self-serving for customers.Here's the 11-slide pitch deck a startup that analyzes consumers' digital behavior to fight fraud used to raise a $7 million Series AAI-powered tools to spot phony online reviews FakespotMarketplaces like Amazon and eBay host millions of third-party sellers, and their algorithms will often boost items in search based on consumer sentiment, which is largely based on reviews. But many third-party sellers use fake reviews often bought from click farms to boost their items, some of which are counterfeit or misrepresented to consumers.That's where Fakespot comes in. With its Chrome extension, it warns users of sellers using potentially fake reviews to boost sales and can identify fraudulent sellers. Fakespot is currently compatible with Amazon, BestBuy, eBay, Sephora, Steam, and Walmart."There are promotional reviews written by humans and bot-generated reviews written by robots or review farms," Fakespot founder and CEO Saoud Khalifah told Insider. "Our AI system has been built to detect both categories with very high accuracy."Fakespot's AI learns via reviews data available on marketplace websites, and uses natural-language processing to identify if reviews are genuine. Fakespot also looks at things like whether the number of positive reviews are plausible given how long a seller has been active.Fakespot, a startup that helps shoppers detect robot-generated reviews and phony sellers on Amazon and Shopify, used this pitch deck to nab a $4 million Series AHelping fintechs manage dataProper Finance co-founders Travis Gibson (left) and Kyle MaloneyProper FinanceAs the flow of data becomes evermore crucial for fintechs, from the strappy startup to the established powerhouse, a thorny issue in the back office is becoming increasingly complex.Even though fintechs are known for their sleek front ends, the back end is often quite the opposite. Behind that streamlined interface can be a mosaic of different partner integrations — be it with banks, payments players and networks, or software vendors — with a channel of data running between them. Two people who know that better than the average are Kyle Maloney and Travis Gibson, two former employees of Marqeta, a fintech that provides other fintechs with payments processing and card issuance. "Take an established neobank for example. They'll likely have one or two card issuers, two to three bank partners, ACH processing for direct deposits and payouts, mobile check deposits, peer-to-peer payments, and lending," Gibson told Insider. Here's the 12-page pitch deck a startup helping fintechs manage their data used to score a $4.3 million seed from investors like Redpoint Ventures and Y CombinatorE-commerce focused business bankingMichael Rangel, cofounder and CEO, and Tyler McIntyre, cofounder and CTO of Novo.Kristelle Boulos PhotographyBusiness banking is a hot market in fintech. And it seems investors can't get enough.Novo, the digital banking fintech aimed at small e-commerce businesses, raised a $40.7 million Series A led by Valar Ventures in June. Since its launch in 2018, Novo has signed up 100,000 small businesses. Beyond bank accounts, it offers expense management, a corporate card, and integrates with e-commerce infrastructure players like Shopify, Stripe, and Wise.Founded in 2018, Novo was based in New York City, but has since moved its headquarters to Miami. Here's the 12-page pitch deck e-commerce banking startup Novo used to raise its $40 million Series AShopify for embedded financeProductfy CEO and founder, Duy VoProductfyProductfy is looking to break into embedded finance by becoming the Shopify of back-end banking services.Embedded finance — integrating banking services in non-financial settings — has taken hold in the e-commerce world. But Productfy is going after a different kind of customer in churches, universities, and nonprofits.The San Jose, Calif.-based upstart aims to help non-finance companies offer their own banking products. Productfy can help customers launch finance features in as little as a week and without additional engineering resources or background knowledge of banking compliance or legal requirements, Productfy founder and CEO Duy Vo told Insider. "You don't need an engineer to stand up Shopify, right? You can be someone who's just creating art and you can use Shopify to build your own online store," Vo said, adding that Productfy is looking to take that user experience and replicate it for banking services.Here's the 15-page pitch deck Productfy, a fintech looking to be the Shopify of embedded finance, used to nab a $16 million Series ADeploying algorithms and automation to small-business financingJustin Straight and Bernard Worthy, LoanWell co-foundersLoanWellBernard Worthy and Justin Straight, the founders of LoanWell, want to break down barriers to financing for small and medium-size businesses — and they've got algorithms and automation in their tech arsenals that they hope will do it.Worthy, the company's CEO, and Straight, its chief operating and financial officer, are powering community-focused lenders to fill a gap in the SMB financing world by boosting access to loans under $100,000. And the upstart is known for catching the attention, and dollars, of mission-driven investors. LoanWell closed a $3 million seed financing round in December led by Impact America Fund with participation from SoftBank's SB Opportunity Fund and Collab Capital.LoanWell automates the financing process — from underwriting and origination, to money movement and servicing — which shaves down an up-to-90-day process to 30 days or even same-day with some LoanWell lenders, Worthy said. SMBs rely on these loans to process quickly after two years of financial uncertainty. But the pandemic illustrated how time-consuming and expensive SMB financing can be, highlighted by efforts like the federal government's Paycheck Protection Program.Community banks, once the lifeline to capital for many local businesses, continue to shutter. And demands for smaller loan amounts remain largely unmet. More than half of business-loan applicants sought $100,000 or less, according to 2018 data from the Federal Reserve. But the average small-business bank loan was closer to six times that amount, according to the latest data from a now discontinued Federal Reserve survey.Here's the 14-page pitch deck LoanWell used to raise $3 million from investors like SoftBank.Branded cards for SMBsJennifer Glaspie-Lundstrom is the cofounder and CEO of Tandym.TandymJennifer Glaspie-Lundstrom is no stranger to the private-label credit-card business. As a former Capital One exec, she worked in both the card giant's co-brand partnerships division and its tech organization during her seven years at the company.Now, Glaspie-Lundstrom is hoping to use that experience to innovate a sector that was initially created in malls decades ago.Glaspie-Lundstrom is the cofounder and CEO of Tandym, which offers private-label digital credit cards to merchants. Store and private-label credit cards aren't a new concept, but Tandym is targeting small- and medium-sized merchants with less than $1 billion in annual revenue. Glaspie-Lundstrom said that group often struggles to offer private-label credit due to the expense of working with legacy players."What you have is this example of a very valuable product type that merchants love and their customers love, but a huge, untapped market that has heretofore been unserved, and so that's what we're doing with Tandym," Glaspi-Lundstrom told Insider.A former Capital One exec used this deck to raise $60 million for a startup helping SMBs launch their own branded credit cardsCatering to 'micro businesses'Stefanie Sample is the founder and CEO of FundidFundidStartups aiming to simplify the often-complex world of corporate cards have boomed in recent years.Business-finance management startup Brex was last valued at $12.3 billion after raising $300 million last year. Startup card provider Ramp announced an $8.1 billion valuation in March after growing its revenue nearly 10x in 2021. Divvy, a small business card provider, was acquired by Bill.com in May 2021 for approximately $2.5 billion.But despite how hot the market has gotten, Stefanie Sample said she ended up working in the space by accident. Sample is the founder and CEO of Fundid, a new fintech that provides credit and lending products to small businesses.This May, Fundid announced a $3.25 million seed round led by Nevcaut Ventures. Additional investors include the Artemis Fund and Builders and Backers. The funding announcement capped off the company's first year: Sample introduced the Fundid concept in April 2021, launched its website in May, and began raising capital in August."I never meant to do Fundid," Sample told Insider. "I never meant to do something that was venture-backed."Read the 12-page deck used by Fundid, a fintech offering credit and lending tools for 'micro businesses'Embedded payments for SMBsThe Highnote teamHighnoteBranded cards have long been a way for merchants with the appropriate bank relationships to create additional revenue and build customer loyalty. The rise of embedded payments, or the ability to shop and pay in a seamless experience within a single app, has broadened the number of companies looking to launch branded cards.Highnote is a startup that helps small to mid-sized merchants roll out their own debit and pre-paid digital cards. The fintech emerged from stealth on Tuesday to announce it raised $54 million in seed and Series A funding.Here's the 12-page deck Highnote, a startup helping SMBs embed payments, used to raise $54 million in seed and Series A fundingHelping small businesses manage their taxesComplYant's founder Shiloh Jackson wants to help people be present in their bookkeeping.ComplYantAfter 14 years in tax accounting, Shiloh Johnson had formed a core philosophy around corporate accounting: everyone deserves to understand their business's money and business owners need to be present in their bookkeeping process.She wanted to help small businesses understand "this is why you need to do what you're doing and why you have to change the way you think about tax and be present in your bookkeeping process," she told Insider. The Los Angeles native wanted small businesses to not only understand business tax no matter their size but also to find the tools they needed to prepare their taxes in one spot. So Johnson developed a software platform that provides just that.The 13-page pitch deck ComplYant used to nab $4 million that details the tax startup's plan to be Turbotax, Quickbooks, and Xero rolled into one for small business ownersAutomating accounting ops for SMBsDecimal CEO Matt Tait.DecimalSmall- and medium-sized businesses can rely on any number of payroll, expense management, bill pay, and corporate-card startups promising to automate parts of their financial workflow. Smaller firms have adopted this corporate-financial software en masse, boosting growth throughout the pandemic for relatively new entrants like Ramp and massive, industry stalwarts like Intuit. But it's no easy task to connect all of those tools into one, seamless process. And while accounting operations might be far from where many startup founders want to focus their time, having efficient back-end finances does mean time — and capital — freed up to spend elsewhere. For Decimal CEO Matt Tait, there's ample opportunity in "the boring stuff you have to do to survive as a company," he told Insider. Launched in 2020, Decimal provides a back-end tech layer that small- and medium-sized businesses can use to integrate their accounting and business-management software tools in one place.On Wednesday, Decimal announced a $9 million seed fundraising round led by Minneapolis-based Arthur Ventures, alongside Service Providers Capital and other angel investors. See the 13-page pitch deck for Decimal, a startup automating accounting ops for small businessesInvoice financing for SMBsStacey Abrams and Lara Hodgson, Now co-foundersNowAbout a decade ago, politician Stacey Abrams and entrepreneur Lara Hodgson were forced to fold their startup because of a kink in the supply chain — but not in the traditional sense.Nourish, which made spill-proof bottled water for children, had grown quickly from selling to small retailers to national ones. And while that may sound like a feather in the small business' cap, there was a hang-up."It was taking longer and longer to get paid, and as you can imagine, you deliver the product and then you wait and you wait, but meanwhile you have to pay your employees and you have to pay your vendors," Hodgson told Insider. "Waiting to get paid was constraining our ability to grow."While it's not unusual for small businesses to grapple with working capital issues, the dust was still settling from the Great Recession. Abrams and Hodgson couldn't secure a line of credit or use financing tools like factoring to solve their problem. The two entrepreneurs were forced to close Nourish in 2012, but along the way they recognized a disconnect in the system.  "Why are we the ones borrowing money, when in fact we're the lender here because every time you send an invoice to a customer, you've essentially extended a free loan to that customer by letting them pay later," Hodgson said. "And the only reason why we were going to need to possibly borrow money was because we had just given ours away for free to Whole Foods," she added.Check out the 7-page deck that Now, Stacey Abrams' fintech that wants to help small businesses 'grow fearlessly', used to raise $29 millionCheckout made easyRyan Breslow.Ryan BreslowAmazon has long dominated e-commerce with its one-click checkout flows, offering easier ways for consumers to shop online than its small-business competitors.Bolt gives small merchants tools to offer the same easy checkouts so they can compete with the likes of Amazon.The startup raised its $393 million Series D to continue adding its one-click checkout feature to merchants' own websites in October.Bolt markets to merchants themselves. But a big part of Bolt's pitch is its growing network of consumers — currently over 5.6 million — that use its features across multiple Bolt merchant customers. Roughly 5% of Bolt's transactions were network-driven in May, meaning users that signed up for a Bolt account on another retailer's website used it elsewhere. The network effects were even more pronounced in verticals like furniture, where 49% of transactions were driven by the Bolt network."The network effect is now unleashed with Bolt in full fury, and that triggered the raise," Bolt's founder and CEO Ryan Breslow told Insider.Here's the 12-page deck that one-click checkout Bolt used to outline its network of 5.6 million consumers and raise its Series DPayments infrastructure for fintechsQolo CEO and co-founder Patricia MontesiQoloThree years ago, Patricia Montesi realized there was a disconnect in the payments world. "A lot of new economy companies or fintech companies were looking to mesh up a lot of payment modalities that they weren't able to," Montesi, CEO and co-founder of Qolo, told Insider.Integrating various payment capabilities often meant tapping several different providers that had specializations in one product or service, she added, like debit card issuance or cross-border payments. "The way people were getting around that was that they were creating this spider web of fintech," she said, adding that "at the end of it all, they had this mess of suppliers and integrations and bank accounts."The 20-year payments veteran rounded up a group of three other co-founders — who together had more than a century of combined industry experience — to start Qolo, a business-to-business fintech that sought out to bundle back-end payment rails for other fintechs.Here's the 11-slide pitch deck a startup that provides payments infrastructure for other fintechs used to raise a $15 million Series ABetter use of payroll dataAtomic's Head of Markets, Lindsay DavisAtomicEmployees at companies large and small know the importance — and limitations — of how firms manage their payrolls. A new crop of startups are building the API pipes that connect companies and their employees to offer a greater level of visibility and flexibility when it comes to payroll data and employee verification. On Thursday, one of those names, Atomic, announced a $40 million Series B fundraising round co-led by Mercato Partners and Greylock, alongside Core Innovation Capital, Portage, and ATX Capital. The round follows Atomic's Series A round announced in October, when the startup raised a $22 million Series A from investors including Core Innovation Capital, Portage, and Greylock.Payroll startup Atomic just raised a $40 million Series B. Here's an internal deck detailing the fintech's approach to the red-hot payments space.Saving on vendor invoicesHoward Katzenberg, Glean's CEO and cofounderGleanWhen it comes to high-flying tech startups, headlines and investors typically tend to focus on industry "disruption" and the total addressable market a company is hoping to reach. Expense cutting as a way to boost growth typically isn't part of the conversation early on, and finance teams are viewed as cost centers relative to sales teams. But one fast-growing area of business payments has turned its focus to managing those costs. Startups like Ramp and established names like Bill.com have made their name offering automated expense-management systems. Now, one new fintech competitor, Glean, is looking to take that further by offering both automated payment services and tailored line-item accounts-payable insights driven by machine-learning models. Glean's CFO and founder, Howard Katzenberg, told Insider that the genesis of Glean was driven by his own personal experience managing the finance teams of startups, including mortgage lender Better.com, which Katzenberg left in 2019, and online small-business lender OnDeck. "As a CFO of high-growth companies, I spent a lot of time focused on revenue and I had amazing dashboards in real time where I could see what is going on top of the funnel, what's going on with conversion rates, what's going on in terms of pricing and attrition," Katzenberg told Insider. See the 15-slide pitch deck Glean, a startup using machine learning to find savings in vendor invoices, used to raise $10.8 million in seed fundingReal-estate management made easyAgora founders Noam Kahan, CTO, Bar Mor, CEO, and Lior Dolinski, CPOAgoraFor alternative asset managers of any type, the operations underpinning sales and investor communications are a crucial but often overlooked part of the business. Fund managers love to make bets on markets, not coordinate hundreds of wire transfers to clients each quarter or organize customer-relationship-management databases.Within the $10.6 trillion global market for professionally managed real-estate investing, that's where Tel Aviv and New York-based startup Agora hopes to make its mark.Founded in 2019, Agora offers a set of back-office, investor relations, and sales software tools that real-estate investment managers can plug into their workflows. On Wednesday, Agora announced a $9 million seed round, led by Israel-based venture firm Aleph, with participation from River Park Ventures and Maccabee Ventures. The funding comes on the heels of an October 2020 pre-seed fund raise worth $890,000, in which Maccabee also participated.Here's the 15-slide pitch deck that Agora, a startup helping real-estate investors manage communications and sales with their clients, used to raise a $9 million seed roundAccess to commercial real-estate investing LEX Markets cofounders and co-CEOs Drew Sterrett and Jesse Daugherty.LEX MarketsDrew Sterrett was structuring real-estate deals while working in private equity when he realized the inefficiencies that existed in the market. Only high-net worth individuals or accredited investors could participate in commercial real-estate deals. If they ever wanted to leave a partnership or sell their stake in a property, it was difficult to find another investor to replace them. Owners also struggled to sell minority stakes in their properties and didn't have many good options to recapitalize an asset if necessary.In short, the market had a high barrier to entry despite the fact it didn't always have enough participants to get deals done quickly. "Most investors don't have access to high-quality commercial real-estate investments. How do we have the oldest and largest asset class in the world and one of the largest wealth creators with no public and liquid market?" Sterrett told Insider. "It sort of seems like a no-brainer, and that this should have existed 50 or 60 years ago."This 15-page pitch deck helped LEX Markets, a startup making investing in commercial real estate more accessible, raise $15 millionInsurance goes digitalJamie Hale, CEO and cofounder of LadderLadderFintechs looking to transform how insurance policies are underwritten, issued, and experienced by customers have grown as new technology driven by digital trends and artificial intelligence shape the market. And while verticals like auto, homeowner's, and renter's insurance have seen their fair share of innovation from forward-thinking fintechs, one company has taken on the massive life-insurance market. Founded in 2017, Ladder uses a tech-driven approach to offer life insurance with a digital, end-to-end service that it says is more flexible, faster, and cost-effective than incumbent players.Life, annuity, and accident and health insurance within the US comprise a big chunk of the broader market. In 2020, premiums written on those policies totaled some $767 billion, compared to $144 billion for auto policies and $97 billion for homeowner's insurance.Here's the 12-page deck that Ladder, a startup disrupting the 'crown jewel' of the insurance market, used to nab $100 millionData science for commercial insuranceTanner Hackett, founder and CEO of CounterpartCounterpartThere's been no shortage of funds flowing into insurance-technology companies over the past few years. Private-market funding to insurtechs soared to $15.4 billion in 2021, a 90% increase compared to 2020. Some of the most well-known consumer insurtech names — from Oscar (which focuses on health insurance) to Metromile (which focuses on auto) — launched on the public markets last year, only to fall over time or be acquired as investors questioned the sustainability of their business models. In the commercial arena, however, the head of one insurtech company thinks there is still room to grow — especially for those catering to small businesses operating in an entirely new, pandemic-defined environment. "The bigger opportunity is in commercial lines," Tanner Hackett, the CEO of management liability insurer Counterpart, told Insider."Everywhere I poke, I'm like, 'Oh my goodness, we're still in 1.0, and all the other businesses I've built were on version three.' Insurance is still in 1.0, still managing from spreadsheets and PDFs," added Hackett, who also previously co-founded Button, which focuses on mobile marketing. See the 8-page pitch deck Counterpart, a startup disrupting commercial insurance with data science, used to raise a $30 million Series BSmarter insurance for multifamily propertiesItai Ben-Zaken, cofounder and CEO of Honeycomb.HoneycombA veteran of the online-insurance world is looking to revolutionize the way the industry prices risk for commercial properties with the help of artificial intelligence.Insurance companies typically send inspectors to properties before issuing policies to better understand how the building is maintained and identify potential risks or issues with it. It's a process that can be time-consuming, expensive, and inefficient, making it hard to justify for smaller commercial properties, like apartment and condo buildings.Insurtech Honeycomb is looking to fix that by using AI to analyze a combination of third-party data and photos submitted by customers through the startup's app to quickly identify any potential risks at a property and more accurately price policies."That whole physical inspection thing had really good things in it, but it wasn't really something that is scalable and, it's also expensive," Itai Ben-Zaken, Honeycomb's cofounder and CEO, told Insider. "The best way to see a property right now is Google street view. Google street view is usually two years old."Here's the 10-page Series A pitch deck used by Honeycomb, a startup that wants to revolutionize the $26 billion market for multifamily property insuranceHelping freelancers with their taxesJaideep Singh is the CEO and co-founder of FlyFin, an AI-driven tax preparation software program for freelancers.FlyFinSome people, particularly those with families or freelancing businesses, spend days searching for receipts for tax season, making tax preparation a time consuming and, at times, taxing experience. That's why in 2020 Jaideep Singh founded FlyFin, an artificial-intelligence tax preparation program for freelancers that helps people, as he puts it, "fly through their finances." FlyFin is set up to connect to a person's bank accounts, allowing the AI program to help users monitor for certain expenses that can be claimed on their taxes like business expenditures, the interest on mortgages, property taxes, or whatever else that might apply. "For most individuals, people have expenses distributed over multiple financial institutions. So we built an AI platform that is able to look at expenses, understand the individual, understand your profession, understand the freelance population at large, and start the categorization," Singh told Insider.Check out the 7-page pitch deck a startup helping freelancers manage their taxes used to nab $8 million in fundingDigital banking for freelancersJGalione/Getty ImagesLance is a new digital bank hoping to simplify the life of those workers by offering what it calls an "active" approach to business banking. "We found that every time we sat down with the existing tools and resources of our accountants and QuickBooks and spreadsheets, we just ended up getting tangled up in the whole experience of it," Lance cofounder and CEO Oona Rokyta told Insider. Lance offers subaccounts for personal salaries, withholdings, and savings to which freelancers can automatically allocate funds according to custom preset levels. It also offers an expense balance that's connected to automated tax withholdings.In May, Lance announced the closing of a $2.8 million seed round that saw participation from Barclays, BDMI, Great Oaks Capital, Imagination Capital, Techstars, DFJ Frontier, and others.Here's the 21-page pitch deck Lance, a digital bank for freelancers, used to raise a $2.8 million seed round from investors including BarclaysSoftware for managing freelancersWorksome cofounder and CEO Morten Petersen.WorksomeThe way people work has fundamentally changed over the past year, with more flexibility and many workers opting to freelance to maintain their work-from-home lifestyles.But managing a freelance or contractor workforce is often an administrative headache for employers. Worksome is a startup looking to eliminate all the extra work required for employers to adapt to more flexible working norms.Worksome started as a freelancer marketplace automating the process of matching qualified workers with the right jobs. But the team ultimately pivoted to a full suite of workforce management software, automating administrative burdens required to hire, pay, and account for contract workers.In May, Worksome closed a $13 million Series A backed by European angel investor Tommy Ahlers and Danish firm Lind & Risør.Here's the 21-slide pitch deck used by a startup that helps firms like Carlsberg and Deloitte manage freelancersPayments and operations support HoneyBook cofounders Dror Shimoni, Oz Alon, and Naama Alon.HoneyBookWhile countless small businesses have been harmed by the pandemic, self-employment and entrepreneurship have found ways to blossom as Americans started new ventures.Half of the US population may be freelance by 2027, according to a study commissioned by remote-work hiring platform Upwork. HoneyBook, a fintech startup that provides payment and operations support for freelancers, in May raised $155 million in funding and achieved unicorn status with its $1 billion-plus valuation.Durable Capital Partners led the Series D funding with other new investors including renowned hedge fund Tiger Global, Battery Ventures, Zeev Ventures, and 01 Advisors. Citi Ventures, Citigroup's startup investment arm that also backs fintech robo-advisor Betterment, participated as an existing investor in the round alongside Norwest Venture partners. The latest round brings the company's fundraising total to $227 million to date.Here's the 21-page pitch deck a Citi-backed fintech for freelancers used to raise $155 million from investors like hedge fund Tiger GlobalPay-as-you-go compliance for banks, fintechs, and crypto startupsNeepa Patel, Themis' founder and CEOThemisWhen Themis founder and CEO Neepa Patel set out to build a new compliance tool for banks, fintech startups, and crypto companies, she tapped into her own experience managing risk at some of the nation's biggest financial firms. Having worked as a bank regulator at the Office of the Comptroller of the Currency and in compliance at Morgan Stanley, Deutsche Bank, and the enterprise blockchain company R3, Patel was well-placed to assess the shortcomings in financial compliance software. But Patel, who left the corporate world to begin work on Themis in 2020, drew on more than just her own experience and frustrations to build the startup."It's not just me building a tool based on my personal pain points. I reached out to regulators. I reached out to bank compliance officers and members in the fintech community just to make sure that we're building it exactly how they do their work," Patel told Insider. "That was the biggest problem: No one built a tool that was reflective of how people do their work."Check out the 9-page pitch deck Themis, which offers pay-as-you-go compliance for banks, fintechs, and crypto startups, used to raise $9 million in seed fundingConnecting startups and investorsHum Capital cofounder and CEO Blair SilverbergHum CapitalBlair Silverberg is no stranger to fundraising.For six years, Silverberg was a venture capitalist at Draper Fisher Jurvetson and Private Credit Investments making bets on startups."I was meeting with thousands of founders in person each year, watching them one at a time go through this friction where they're meeting a ton of investors, and the investors are all asking the same questions," Silverberg told Insider. He switched gears about three years ago, moving to the opposite side of the metaphorical table, to start Hum Capital, which uses artificial intelligence to match investors with startups looking to fundraise.On August 31, the New York-based fintech announced its $9 million Series A. The round was led by Future Ventures with participation from Webb Investment Network, Wavemaker Partners, and Partech. This 11-page pitch deck helped Hum Capital, a fintech using AI to match investors with startups, raise a $9 million Series A.Helping LatAm startups get up to speedKamino cofounders Gut Fragoso, Rodrigo Perenha, Benjamin Gleason, and Gonzalo ParejoKaminoThere's more venture capital flowing into Latin America than ever before, but getting the funds in founders' hands is not exactly a simple process.In 2021, investors funneled $15.3 billion into Latin American companies, more than tripling the previous record of $4.9 billion in 2019. Fintech and e-commerce sectors drove funding, accounting for 39% and 25% of total funding, respectively.  However, for many startup founders in the region who have successfully sold their ideas and gotten investors on board, there's a patchwork of corporate structuring that's needed to access the funds, according to Benjamin Gleason, who was the chief financial officer at Groupon LatAm prior to cofounding Brazil-based fintech Kamino.It's a process Gleason and his three fellow Kamino cofounders have been through before as entrepreneurs and startup execs themselves. Most often, startups have to set up offshore financial accounts outside of Brazil, which "entails creating a Cayman [Islands] holding company, a Delaware LLC, and then connecting it to a local entity here and also opening US bank accounts for the Cayman entity, which is not trivial from a KYC perspective," said Gleason, who founded open-banking fintech Guiabolso in Sao Paulo. His partner, Gonzalo Parejo, experienced the same toils when he founded insurtech Bidu."Pretty much any international investor will usually ask for that," Gleason said, adding that investors typically cite liability issues."It's just a massive amount of bureaucracy, complexity, a lot of time from the founders. All of this just to get the money from the investor that wants to give them the money," he added.Here's the 8-page pitch deck Kamino, a fintech helping LatAm startups with everything from financing to corporate credit cards, used to raise a $6.1M pre-seed roundThe back-end tech for beautyDanielle Cohen-Shohet, CEO and founder of GlossGeniusGlossGeniusDanielle Cohen-Shohet might have started as a Goldman Sachs investment analyst, but at her core she was always a coder.After about three years at Goldman Sachs, Cohen-Shohet left the world of traditional finance to code her way into starting her own company in 2016. "There was a period of time where I did nothing, but eat, sleep, and code for a few weeks," Cohen-Shohet told Insider. Her technical edge and knowledge of the point-of-sale payment space led her to launch a software company focused on providing behind-the-scenes tech for beauty and wellness small businesses.Cohen-Shohet launched GlossGenius in 2017 to provide payments tech for hair stylists, nail technicians, blow-out bars, and other small businesses in the space.Here's the 11-page deck GlossGenius, a startup that provides back-end tech for the beauty industry, used to raise $16 millionRead the original article on Business Insider.....»»

Category: personnelSource: nytJun 22nd, 2022