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On-demand trucking app Convoy raises $185M at $1B valuation

CapitalG, the growth equity arm of Alphabet, has led the $185 million round in Convoy, its first investment in the Seattle-based, tech-enabled trucking network.

The round brings Convoy’s total raised to $265 million and values the company at $1 billion. New investors T. Rowe Price and Lone Pine Capital participated in the financing alongside existing investors.

Convoy has long been backed by Greylock Partners, which led the startup’s Series A in 2015. Y Combinator is also a backer. In an unusual move last year, Y Combinator led a $62 million round in Convoy in what was the first time the accelerator deployed capital from its continuity fund into a late-stage company that was not a YC graduate.

Salesforce CEO Marc Benioff, Dropbox CEO Drew Houston, Bezos Expeditions and former Starbucks president Howard Behar are also Convoy investors.

Founded by a pair of former Amazonians, Dan Lewis and Grant Goodale, Convoy is trying to transform the $800 billion trucking industry, which is no easy feat. Dubbed the ‘Uber for trucks,’ Convoy’s app connects truckers with people who need freight moved. With the new funding, it’ll expand nationwide and move beyond just freight matching.

“Trucks run empty 40% of the time, and they often sit idle due to inefficient scheduling,” Convoy CEO Dan Lewis said in a statement. “This is a drag on the economy, the environment, and the bottom lines of shippers and carriers alike.”

According to GeekWire, Convoy is working on a new suite of tools to help truckers combine tasks so they waste less time. And it’s working to provide shippers access to tracking and pricing data through its platform.

As part of the deal, CapitalG partner David Lawee will join Convoy’s board of directors.

These are the most successful companies to emerge from Y Combinator

Earlier this month, Brex, a credit card provider to startups, announced it had raised $125 million at a $1.1 billion valuation.

The round was impressive for a couple of reasons: The founders are a pair of 22-year-olds that had set out to build a virtual reality company before pivoting to payments, and they had only completed Y Combinator, a well-known Silicon Valley startup accelerator, the year prior.

Y Combinator is responsible for many successes in the startup world, certainly more than its fellow accelerators, which are all known to provide early-stage companies with a seed investment — in YC’s case, $150,000 — mentorship and educational resources through a short-term program that culminates in a demo day.

Today, YC has released the latest list of its most successful companies since it began backing startups in 2005. Ranked by valuation and/or market cap, Brex, sure enough, is the youngest company to crack the top 20:

  1. Airbnb: An online travel community and room-sharing platform founded by Brian Chesky, Joe Gebbia and Nathan Blecharczyk. Valuation: $31 billion. YC W2009.
  2. Stripe: A provider of an online payment processing system for internet businesses founded by John and Patrick Collison. Valuation: $20 billion. YC S2009.
  3. Cruise: Acquired by GM in 2006, the company is building autonomous vehicles. It was founded by Kyle Vogt and Daniel Kan. Valuation: $14 billion. YC W2014.
  4. Dropbox: A file hosting service and workplace collaboration platform founded by Drew Houston and Arash Ferdowsi that went public in March. Market cap: >$10 billion. YC S2007.
  5. Instacart: A grocery and home essentials delivery service founded by Apoorva Mehta, Max Mullen and Brandon Leonardo. Valuation: $7.6 billion. YC S2012.
  6. Machine Zone: A mobile games company, founded by Mike Sherrill, Gabriel Leydon and Halbert Nakagawa, known for “Game of War.” Valuation: >$5 billion. YC W2008.
  7. DoorDash: An app-based food delivery service founded by Tony Xu, Stanley Tang and Andy Fang. Valuation: $4 billion. YC S2013.
  8. Zenefits: The provider of human resources software for small and medium-sized businesses founded by Laks Srini and Parker Conrad. Valuation: $2 billion. YC W2013.
  9. Gusto: The provider of software that automates and simplifies payroll for businesses, founded by Josh Reeves, Tomer London and Edward Kim. Valuation: $2 billion. YC W2012.
  10.  Reddit: An online platform for conversation and thousands of communities founded by Alexis Ohanian and Steve Huffman. Valuation: $1.8 billion. YC S2005.
  11.  Coinbase: A digital cryptocurrency exchange and wallet platform founded by Brian Armstrong and Fred Ehrsam. Valuation ~$1.6 billion. YC S2012.
  12.  PagerDuty: A digital ops management platform for businesses founded by Baskar Puvanathasan, Andrew Miklas and Alex Solomon. Valuation: $1.3 billion. YC S2012.
  13.  Docker: A platform for applications that gives developers the freedom to build, manage and secure business-critical applications, founded by Solomon Hykes and Sebastien Pahl. Valuation: $1.3 billion. YC S2010.
  14.  Ginkgo Bioworks: A biotech company focused on designing custom microbes founded by Reshma Shetty, Jason Kelly, Barry Canton and others. Valuation: >$1 billion. YC S2014.
  15.  Rappi: A Latin American on-demand delivery startup founded by Felipe Villamarin, Simon Borrero and Sebastian Mejia. Valuation: >$1 billion. YC W2016.
  16.  Brex: A B2B financial startup that provides corporate cards to startups. Its founders include Henrique Dubugras and Pedro Franceschi. Valuation: $1.1 billion. YC W2017.
  17.  GitLab: A developer service founded by Sid Sijbrandij and Dmitriy Zaporozhets that aims to offer a full lifecycle DevOps platform. Valuation: $1.1 billion. YC W2015.
  18.  Twitch: An Amazon-acquired live-streaming platform for video games used by millions. Its founders include Emmett Shear, Justin Kan, Michael Seibel and Kyle Vogt. YC W2007.
  19.  Flexport: A logistics company that moves freight globally by air, ocean, rail and truck founded by Ryan Petersen. Valuation: ~$1 billion. YC W2014.
  20.  Mixpanel: A user analytics platform that helps each person at a business understand its users, founded by Suhail Doshi and Tim Trefren. Valuation: >$865 million. YC S2009.

The full list of Y Combinator’s 100 most successful companies is available here.

Dropbox is going public, nine years after turning down an offer from Steve Jobs

Dropbox's file sharing app
Image: JAAP ARRIENS/NURPHOTO/SIPA USA

The place where you may or may not store and share your photos, PDFs, and other documents is going public. 

Dropbox, a cloud storage company based in Silicon Valley’s heart San Francisco, is listing on the Nasdaq under the stock ticker $DBX, according to its S-1 document unveiled by the Securities and Exchange Commission (SEC) on Friday. Dropbox was most recently valued at $10 billion and is now seeking to raise $500 million. 

“Our modern economy runs on knowledge. Today, knowledge lives in the cloud as digital content, and Dropbox is a global collaboration platform where more and more of this content is created, accessed, and shared with the world. We serve more than 500 million registered users across 180 countries,” the S-1 document states. 

Dropbox’s move to go public isn’t all that surprising, but it is an important step for the company and the larger tech industry. Dropbox filed documents with the SEC confidentially in January and had plans to go public the first half of 2018, Bloomberg reported. But Dropbox’s move is impressive in part because CEO Drew Houston once took a risk by turning down an offer from the one and only Steve Jobs. Now, Dropbox is the first big tech IPO of the year. 

The announcement comes as new tech stock has had somewhat of a rocky start on the public market. Blue Apron was a big disappointment, partially because of Amazon’s dominance in the delivery industry. Snap, the parent company of Snapchat, is facing ongoing competition from Facebook and user backlash. Earlier this week, celebrity Kylie Jenner, one of the app’s most popular users, admitted she wasn’t using Snapchat anymore

Of course, Dropbox is quite a different business. The company offers free and paid cloud storage to individuals and businesses. The company shared it has 500 million registered users, with 100 million users having signed up since the beginning of 2017. More than 11 million of these users pay for the services. 

Dropbox’s revenue was $1.11 billion in 2017, a 31 percent increase from the year prior. It lost $111.7 million in 2017, about $100 million less than in 2016. Those are both good signs. 

Dropbox competitor Box listed on the public markets back in 2015. It’s currently valued at $3.17 billion. 

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