Scoop: Sequoia-backed Knowde raises Series C at a valuation cut

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Knowde, startup, VC, venture capital, scoop

Image Credits: EKIN KIZILKAYA / Getty Images

Knowde, an online marketplace for chemicals and polymers, just closed on a Series C round, TechCrunch has exclusively learned.

The San Jose-based startup raised $60 million in a round that values it lower than the $500 million valuation it garnered in its most recent round, according to multiple sources familiar with the matter. This round values the company at north of 20x ARR, according to a source familiar with the transaction. The round included new investors: Blue Cloud Ventures and Point72 Private Investments in addition to existing backer Sequoia.

Knowde declined to comment.

The company has now raised more than $150 million in total venture funding. Its most recent round prior to this was a $72 million Series B led by Coatue; it closed in August 2021. Sequoia led the firm’s $14 million Series A round that closed in May 2020.

Knowde launched in 2017 to bring the chemical and polymer market online. Co-founder and CEO Ali Amin-Javaheri is the child of a DuPont chemist; he’s spent his entire career in the industry. Prior to starting Knowde, Amin-Javaheri worked at ChemPoint, which also tried to introduce technology to the chemicals market, before pivoting to being a middleman distribution platform.

Knowde currently has more than 8,000 chemical suppliers in its marketplace and works with such brands as Unilever, Johnson & Johnson and P&G, among many others.

Scoop: Yelp's lack of transparency around API charges angers developers

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Image Credits: TechCrunch

On July 19, Yelp informed select indie developers that they would have to switch to paid accounts, due to high API usage. Developers were given four days to make the change, in a move that echoes recent communication bungles by Reddit and Twitter.

When the developers replied to the July 19 email, Yelp sent a deck of pricing tiers with base pricing starting from $229 per month for a limit of 1,000 API calls per day.

Developers were concerned that other, more affordable options weren’t mentioned in the deck. Yelp said the pricing is equivalent and simply presented in different ways.

The method of communication and lack of transparency has angered developers, some of whom shuttered their services, even after Yelp gave them a 90-day leeway and apologized.

What happened?

The email, which was viewed by TechCrunch, notes, “We appreciate you signing up for and trialing the Yelp Fusion API. Your API usage is higher than lots of other Yelp Fusion developers and we would like to learn more about how you’re integrating the Fusion API into your platform.

“If we don’t hear back from you by 4:00 pm EST on 7/23/2024, we will temporarily disable your API key until we receive a response with the above-requested information.”

David Kopec, who developed a Mac app called Restaurants for finding local dining options, noted on his blog that Yelp initially offered him up to 25,000 daily API calls for free in 2014.

Other startups have publicly voiced their own complaints about Yelp’s handling of the situation.

Food Genie developer Nick Perkins told TechCrunch that he was surprised by Yelp’s announcement, and the company didn’t answer his questions about the announcement. Perkins said his 99-cent app, which launched in 2017, used only a few hundred calls per day.

Roj Niyogi, co-founder of Enefits, which is a small startup built around a location-based rewards program, said that the company used Yelp’s API for place data. He said Yelp’s short notice and threatening to take away access were like a “virtual gun to the head.”

Yelp responds

Yelp told TechCrunch that the company moved to a paid pricing model in 2019 and has been gradually budging developers to a paid plan. It also noted that since that move, many developers are still using the free version of the API.

“Yelp sunsetted free, commercial, unlimited use of the Yelp Fusion API in 2019 and has been in the process of migrating developers to a paid program over the last several years. The developer community is important to Yelp, and we’ve heard their feedback about the transition period from the free Yelp Fusion API to our paid program,” a company spokesperson said in a statement.

The company apologized for its July communications. “We apologize for last week’s abbreviated transition that impacted a small percentage of developers and have extended access to these users,” the company spokesperson told TechCrunch.

On Thursday, Yelp sent an apology email to developers and extended their free usage by 90 days. “Earlier this month, we sent you an email about your Yelp Fusion API usage. That email gave developers until July 23 to contact us if they want to continue using Yelp’s data for use in their app. We realize you might need more time and are extending your free access for an additional 90 days starting today. Your access should be available now,” according to the email, which was viewed by TechCrunch.

“We’re sorry for any inconvenience or frustration this abbreviated transition might have caused.”

Perkins told TechCrunch that he already pulled Food Genie from the App Store, due to Yelp’s “poor execution” of the transition to a paid API. He added that if he decided to bring back his app, he might look for a different API.

Kopec also decided to shutter his project. He said the company didn’t respond to him about the price disparity between the deck sent to him and the website.

All the developers that TechCrunch talked to were upset about the four-day deadline and how the company handled the communication. They weren’t necessarily upset over the transition to a paid version of API.

“Restaurants was a very low-selling app, and it would not have made sense either way to continue financially. But again, I do not begrudge them going to paid [version of API]. Only that they gave me four days’ notice and sent an inaccurate and threatening email,” Kopec said over email, referring to Yelp’s note about disabling his API key.

As AI models increase in number, companies sitting on large sets of user-generated data have been limiting third-party access. Over the last year, Twitter/X and Reddit made it difficult for makers of third-party clients and tools to keep supporting development by changing their API terms.

These platforms alienated developers who had built popular tools and supported these social networks for years. Much like with Yelp, developers were frustrated by those platforms’ lack of transparency, support and pricing for small developers. Eventually, a lot of them moved to developing apps for new platforms.

Maybe there is a lesson for Yelp in this.

Scoop: Yelp's lack of transparency around API charges angers developers

by with No Comment Tech

On July 19, Yelp informed select indie developers that they would have to switch to paid accounts, due to high API usage. Developers were given four days to make the change, in a move that echoes recent communication bungles by Reddit and Twitter.

When the developers replied to the July 19 email, Yelp sent a deck of pricing tiers with base pricing starting from $229 per month for a limit of 1,000 API calls per day.

However, Yelp did not surface other options, which include $8 to $15 a la carte packages for 1,000 call a piece.

The method of communication and lack of transparency has angered developers, some of whom shuttered their services, even after Yelp gave them a 90-day leeway and apologized.

What happened?

The email, which was viewed by TechCrunch, notes, “We appreciate you signing up for and trialing the Yelp Fusion API. Your API usage is higher than lots of other Yelp Fusion developers and we would like to learn more about how you’re integrating the Fusion API into your platform.

“If we don’t hear back from you by 4:00 pm EST on 7/23/2024, we will temporarily disable your API key until we receive a response with the above-requested information.”

David Kopec, who developed a Mac app called Restaurants for finding local dining options, noted on his blog that Yelp initially offered him up to 25,000 daily API calls for free in 2014.

Other startups have publicly voiced their own complaints about Yelp’s handling of the situation.

Food Genie developer Nick Perkins told TechCrunch that he was surprised by Yelp’s announcement, and the company didn’t answer his questions about the announcement. Perkins said his 99-cent app, which launched in 2017, used only a few hundred calls per day.

Roj Niyogi, co-founder of Enfits, which is a small startup built around a location-based rewards program, said that the company used Yelp’s API for place data. He said Yelp’s short notice and threatening to take away access were like a “virtual gun to the head.”

Yelp responds

Yelp told TechCrunch that the company moved to a paid pricing model in 2019 and has been gradually budging developers to a paid plan. It also noted that since that move, many developers are still using the free version of the API.

“Yelp sunsetted free, commercial, unlimited use of the Yelp Fusion API in 2019 and has been in the process of migrating developers to a paid program over the last several years. The developer community is important to Yelp, and we’ve heard their feedback about the transition period from the free Yelp Fusion API to our paid program,” a company spokesperson said in a statement.

The company apologized for its July communications. “We apologize for last week’s abbreviated transition that impacted a small percentage of developers and have extended access to these users,” the company spokesperson told TechCrunch.

On Thursday, Yelp sent an apology email to developers and extended their free usage by 90 days. “Earlier this month, we sent you an email about your Yelp Fusion API usage. That email gave developers until July 23 to contact us if they want to continue using Yelp’s data for use in their app. We realize you might need more time and are extending your free access for an additional 90 days starting today. Your access should be available now,” according to the email, which was viewed by TechCrunch.

“We’re sorry for any inconvenience or frustration this abbreviated transition might have caused.”

Perkins told TechCrunch that he already pulled Food Genie from the App Store, due to Yelp’s “poor execution” of the transition to a paid API. He added that if he decided to bring back his app, he might look for a different API.

Kopec also decided to shutter his project. He said the company didn’t respond to him about the price disparity between the deck sent to him and the website.

All the developers that TechCrunch talked to were upset about the four-day deadline and how the company handled the communication. They weren’t necessarily upset over the transition to a paid version of API.

“Restaurants was a very low-selling app, and it would not have made sense either way to continue financially. But again, I do not begrudge them going to paid [version of API]. Only that they gave me four days’ notice and sent an inaccurate and threatening email,” Kopec said over email, referring to Yelp’s note about disabling his API key.

As AI models increase in number, companies sitting on large sets of user-generated data have been limiting third-party access. Over the last year, Twitter/X and Reddit made it difficult for makers of third-party clients and tools to keep supporting development by changing their API terms.

These platforms alienated developers who had built popular tools and supported these social networks for years. Much like with Yelp, developers were frustrated by those platforms’ lack of transparency, support and pricing for small developers. Eventually, a lot of them moved to developing apps for new platforms.

Maybe there is a lesson for Yelp in this.

Scoop: Sequoia-backed Knowde raises Series C at a valuation cut

by with No Comment Tech

Knowde, startup, VC, venture capital, scoop

Image Credits: EKIN KIZILKAYA / Getty Images

Knowde, an online marketplace for chemicals and polymers, just closed on a Series C round, TechCrunch has exclusively learned.

The San Jose-based startup raised $60 million in a round that values it lower than the $500 million valuation it garnered in its most recent round, according to multiple sources familiar with the matter. This round values the company at north of 20x ARR, according to a source familiar with the transaction. The round included new investors: Blue Cloud Ventures and Point72 Private investments in addition to existing backer Sequoia.

Knowde declined to comment.

The company has now raised more than $150 million in total venture funding. Its most recent round prior to this was a $72 million Series B led by Coatue; it closed in August 2021. Seqouia led the firm’s $14 million Series A round that closed in May 2020.

Knowde launched in 2017 to bring the chemical and polymer market online. Co-founder and CEO Ali Amin-Javaheri is the child of a DuPont chemist; he’s spent his entire career in the industry. Prior to starting Knowde, Amin-Javaheri worked at ChemPoint, which also tried to introduce technology to the chemicals market, before pivoting to being a middleman distribution platform.

Knowde currently has more than 8,000 chemical suppliers in its marketplace and works with brands including Unilever, Johnson & Johnson and P&G, among many others.

A man takes a photo with a SLR camera

Scoop: Lensrentals acquires BorrowLenses

by with No Comment Tech

A man takes a photo with a SLR camera

Image Credits: Haje Kamps (opens in a new window) / TechCrunch (opens in a new window)

Lensrentals, a titan in the online rental service for photo, video, audio and lighting equipment, has announced its acquisition of BorrowLenses, a key competitor in the space of photographic and video equipment rentals, TechCrunch has learned exclusively. It’s a competitive space in a commodity market, where neither brand has an obvious edge over the other. Neither company is willing to comment on the terms of the deal, but a source familiar with the deal suggests this is likely an all-cash acquisition.

BorrowLenses, in turn, has had an interesting journey. The company was acquired by Shutterfly about a decade ago. Shutterfly was public at the time, but was since acquired by Apollo — yes, the same Apollo that bought Yahoo, which owns TechCrunch — back in 2021.

Founded in 2006, over the years Lensrentals got the edge over BorrowLenses, both in terms of number of staff and overall number of customers. Operating from its headquarters in Tennessee, Lensrentals has cultivated a reputation for being a good place to work (the company is in large part owned by its employees), and that takes care of its customers well.

Tyler Beckman, CEO of Lensrentals, tells TechCrunch that his company has seen BorrowLenses as “friendly rivals” that “push each other to excel,” and that the company sees the acquisition as an opportunity to lean into the benefits of operating at greater scale.

“When you put ownership in the hands of employees, good things happen for customers. We look forward to all BorrowLenses customers getting to experience what I mean by that,” says Beckman.

It is not yet clear what the acquisition means to the job security for the staff at BorrowLenses, nor the San Carlos location itself. A source familiar with the deal says that the acquisition is happening very quickly, and that the Lensrentals team is evaluating the viability of keeping the employees and the location as the process unfolds.

BorrowLenses has a broad selection of gear — a source at the company says that its assets need to be integrated into Lensrentals’ existing inventory of more than 400,000 rentable items across more than 6,000 different lenses, cameras, drones, lighting, audio and studio equipment — which has enabled it to compete with local camera rental operations. Fast nationwide shipping and comprehensive insurance gave the company an edge over often poorly run mom-and-pop camera rental shops.

The company also introduced the Lensrentals Keeper Program, which, with the informal slogan “if you like it, keep it,” enables customers to purchase gear they have rented at a reduced price. Photographers have embraced the program as a low risk to buy secondhand gear: Do a few shoots with the lens, and if it works well, they buy it at a steep discount. It’s not impossible that the newly merged company will start liquidating excess gear, so now might be the time to keep an eye out for good offers.

Similar to Lensrentals, BorrowLenses boasts an extensive inventory. The main difference between the companies is their geographic footprints. BorrowLenses has established a strong presence in certain regions, complementing Lensrentals’ national reach. This localized approach — for some reason it’s more reassuring if a lens get shipped a few hundred miles than thousands of miles across the country — has enabled BorrowLenses to cultivate close relationships with its customer base.

Over the years, BorrowLenses has also placed a strong emphasis on educational content, offering tips, tutorials and guides designed to help customers make the most of their rental experience. This focus on education and support has not only enhanced the customer experience but has also positioned BorrowLenses as a thought leader in the creative industry, committed to empowering photographers and videographers at all skill levels.

In many ways, the acquisition represents an obvious one: Two companies that are so similar that they are hard to keep apart help augment each other with small, incremental improvements in localized presence and educational initiatives.

Of course, Beckman told TechCrunch that Lensrentals was kept on its toes by the competition from BorrowLenses. In theory, the customer wins when a single, monolithic company can reap the benefits of operating at a greater scale. In practice, it remains to be seen if the prices will stay the same and the larger company will be able to retain its personal-touch reputation when that element of friendly rivalry is removed.