Pi Day is apparently New Job day for tech execs and VCs these days.
Leaving: Lee Fixel
It’s not every day that one of the top VC investors heads out from their shop. TechCrunch’s @cookie aka Connie Loizos has the story:
Lee Fixel, the low-flying head of Tiger Global’s private equity business, is leaving at the end of June, the firm announced today in a letter sent to clients and seen by Reuters . Scott Shleifer and Chase Coleman will continue as co-managers of the portfolios Fixel has overseen, with Shleifer taking over as its head, according to the letter.
Fixel, 39, is reportedly planning to invest his own money and “may start an investment firm in the future,” Tiger Global wrote in the letter.
Tiger Global has become a major force in late-stage investing. As I wrote last fall, it is also part of a small coterie of investment firms which have pushed their portfolio companies to IPO with reasonable speed (the other firm I noted at the time was Benchmark).
One challenge for Tiger has been the rise of the SoftBank Vision Fund, which has driven up valuations for startups and has almost certainly complicated the return profile of many of Tiger’s investments. The two also share a penchant for investing internationally, where Tiger had almost a monopoly position before the Vision Fund burst on the scene.
Another wrinkle worth tracking is the increasing opposition of Indian founders to both Tiger (and specifically Fixel) and SoftBank. As I wrote in the newsletter just a few weeks ago:
There is a clear lack of trust between India’s startup and venture communities, which ultimately threatens the sustainability and growth outlook of the country’s tech sector.
But a solution to the problem is not so cut and dry. Mega growth funds like SoftBank and Tiger Global have given limited control to their Indian portfolio companies and have forced their hands on numerous occasions. Yet Ola’s avoidance of SoftBank has led to lower valuations and more difficult and lengthier fundraising processes.
Leaving: Chris Cox & Chris Daniels
Facebook’s chief product officer is leaving along with Chris Daniels, the VP of WhatsApp. TechCrunch’s Josh Constine summarized the situation:
The changes solidify that Facebook is entering a new era as it chases the trend of feed sharing giving way to private communication. Cox and Daniels may feel they’ve done their part advancing Facebook’s product, and that the company needs renewed energy as it shifts from a relentless growth focus to keeping its users loyal while learning to monetize a new from of social networking.
There has been much ink spilled here about what this all means strategically, but I do think that there are no good times for prominent 13-year and 8-year veterans to leave their positions. Zuckerberg seems ready to begin a whole new era for Facebook, and perhaps neither wanted to make the multi-year commitment that his new vision entails.
That, or Cox unplugged the servers yesterday.
Leaving (America): Jay Jorgensen
A very rare move from the United States to Korea for a senior exec, from TechCrunch’s Catherine Shu:
Coupang, the unicorn that is defining e-commerce in Korea, announced today that it has hired Jay Jorgensen, Walmart’s former global chief ethics and compliance officer, to serve as its general counsel and chief compliance officer. Jorgensen will relocate to Seoul for the position.
Founded in 2010, with a total of $3.4 billion raised from investors, including SoftBank, and a valuation of $9 billion, Coupang currently operates only in Korea, where it is the largest e-commerce player, but has offices in Seoul, Beijing, Los Angeles, Mountain View, Seattle and Shanghai.
Coupang has been the outlier success of the Korean startup ecosystem for the past few years. The company’s founder, Bom Kim, who holds a bachelor’s and an MBA from Harvard, has worked to apply American management models to Coupang, attempting to eschew the insular culture typical of Korea’s technology companies. Clearly, that vision is drawing international talent.
Staying: Zachary Kirkhorn
The automaker officially tapped as its next chief financial officer Zachary Kirkhorn, a longtime employee who has been part of the automaker’s finance team for nine years, according to securities filings posted Thursday. The automaker also appointed Vaibhav Taneja, who led the integration of Tesla and SolarCity’s accounting teams, as its chief accounting officer. Taneja, who will report to Kirkhorn, will oversee corporate financial reporting, global accounting functions and personnel.
No telling whether Kirkhorn knows how to blow a whistle though….
No Longer Admitted: Bill McGlashan
Sometimes when you venture to make an investment, it doesn’t always pan out, from Maggie Fitzgerald at CNBC:
TPG’s Bill McGlashan was fired from the private equity firm on Thursday amid the massive college cheating scandal.
McGlashan, 55, has been terminated for cause from his positions with TPG and Rise effective immediately.
“After reviewing the allegations of personal misconduct in the criminal complaint, we believe the behavior described to be inexcusable and antithetical to the values of our entire organization,” said a TPG spokesperson.
McGlashan founded TPG Growth, which has had a litany of successes investing in later-stage startups such as Airbnb.
Leaving (but not by choice): Bird employees
“As we establish local service centers and deeper roots in cities where we provide service, we have shifting geographic workforce needs,” a Bird spokesperson told TechCrunch. “We are expanding our employee bases in locations that match our growing operations around the world, while developing an efficient operating structure at our Santa Monica headquarters. The recent events are a reflection of shifting geographical needs and our annual talent review process.”
I hope they flip them the Bird on the way out.
India fintech and the growing proxy war between global tech giants
Written by Arman Tabatabai
South African media conglomerate and investment giant Naspers is reportedly planning to invest $1 billion in India this year.
According to reports earlier this week, Naspers is looking towards India’s budding fintech market in particular to unload the fresh pile of dough it’s sitting on after recently lowering its stake in Tencent and cashing out on Walmart’s $16 billion acquisition of portfolio company Flipkart last year.
The fintech heavy thesis directionally makes sense in the context of Naspers’ broader strategy. Naspers has openly discussed its attraction to India’s financial services market and the company already has an established footprint in the region as the owner of payments platform PayU.
That said, the amount Naspers is reportedly looking to gift in just one year is astounding. Indian fintech startups saw around $2.6 billion of investment in 2018 according to Pitchbook. Naspers’ investment alone would represent a 40% spike in India’s total fintech venture capital.
Though one billion dollars in one year may seem ambitious, Naspers has proven it’s not afraid to pour billions into India and emerging verticals, having just led a $1 billion round in Indian food delivery startup Swiggy only a few months ago.
More importantly, Naspers’ push shows that the company is seriously doubling down in the escalating competition to become the dominant force in India’s booming fintech ecosystem. As we discussed in our recent conversation with Billionaire Raj author James Crabtree, India’s financial system is ripe for disruption. With secular tailwinds like growing mobile penetration and financial literacy, innovative financial models in India have begun leap-frogging traditional institutions, with Google and Boston Consulting Group even forecasting that the market for digital payments in India would reach $500 billion in size by 2020.
And many have taken notice — the number of fintech investments in India has grown at a 200%-plus compound annual growth rate over the last five years, according to data from Pitchbook, as leading investors and global tech powerhouses all battle to become the layer of financial infrastructure on which the future Indian economy sits.
A recent deep dive in the WSJ highlighted how crowded the ongoing fight for Indian payments dominance has become in the context of Paytm, an Indian startup that received a $1.4 billion investment from venture behemoth SoftBank:
The Indian market is one worth fighting for, with hundreds of millions of Indians getting online and starting to transact for the first time, thanks to plummeting prices for mobile data and smartphones.
Digital payments in India are soaring” and “set to explode,” Credit Suisse said in a February research note. They should rise nearly five times to $1 trillion by 2023, the report said…
…Meanwhile, it isn’t just Google and WhatsApp challenging Paytm . Indian e-commerce titan Flipkart, in which Walmart Inc. bought a controlling stake for $16 billion earlier this year, has a popular payments service called PhonePe. Amazon.com Inc. has its own payments service and two of India’s biggest telecom players, Bharti Airtel Ltd. and Reliance Jio Infocomm Ltd., offer digital wallets, as well.”
Next to peers like Alibaba, SoftBank, or Google, Naspers can often seem like the biggest tech company no one has ever heard of. But if its latest swan dive into India can help Naspers strike gold — as it did with its early investment in Tencent — it might just become the company powering the next economies of the world.
To every member of Extra Crunch: thank you. You allow us to get off the ad-laden media churn conveyor belt and spend quality time on amazing ideas, people, and companies. If I can ever be of assistance, hit reply, or send an email to firstname.lastname@example.org.
This newsletter is written with the assistance of Arman Tabatabai from New York