Webtagr - Technology News Summarizer

Troubled Accounting Startup Bench Acquired After Sudden Shutdown

2024-12-30

Bench, the VC-backed accounting startup that abruptly shut down last week, locking thousands of customers out of their accounts, has been acquired by Employer.com for an undisclosed price. Employer.com, a San Francisco-based HR tech company focusing on payroll and onboarding, will revive Bench's platform. Customers will be able to transfer their data or continue service under the new ownership. The previous recommendation for customers to file for a six-month extension with the IRS is no longer necessary if they choose to stay with the service.

(techcrunch.com)

Startup startup acquisition accounting HR tech

Rite Aid's 'Zombie' Stores: A Ghost of Retail Past?

2024-12-30

Once a dominant player in the US drugstore market, Rite Aid is now a shadow of its former self, facing bankruptcy and fierce competition. Hundreds of stores have closed, leaving empty shelves and earning them the moniker "zombie" stores. Consumers are forced to seek alternatives at competitors like Walmart and Amazon. Rite Aid's struggles reflect broader challenges in the pharmacy sector, including intense competition, rising costs, and staffing shortages. While some vacant locations are being repurposed by other retailers, Rite Aid's future remains uncertain, with its "zombie" stores potentially marking the end of an era.

(qz.com)

Startup pharmacy industry market competition pharmacy sector retail decline Retail Bankruptcy Competition

How McKinsey Destroyed the American Middle Class

2024-12-29

This article examines the impact of management consulting firms like McKinsey on the decline of the American middle class. The author argues that McKinsey, by promoting shareholder primacy and implementing strategies aimed at streamlining corporate structures and eliminating middle management (such as 'reengineering' and 'overhead value analysis'), led to massive layoffs, a decline in middle management and blue-collar jobs, weakened unions, and ultimately exacerbated economic inequality and the destruction of the American middle class. The author concludes that this 'technocratic management' approach fails to address structural inequalities and instead widens the gap between elites and the general population.

(www.theatlantic.com)

Startup Middle Class Economic Inequality

Joco's Comeback: From Near-Death to Profitable E-bike Delivery Service

2024-12-28

Joco, an e-bike sharing startup, launched in NYC in 2021 and nearly failed. Initially aiming to compete with Citi Bike, a lawsuit from the NYC Department of Transportation forced a pivot to last-mile delivery services. This proved pivotal. Joco now provides rentals, maintenance, battery-swap cabinets, and community hubs offering riders rest and charging. They've achieved profitability, partnering with major logistics firms like Grubhub across New York, Chicago, and Miami. Their success stems from customer-centric service, exceeding expectations, and financial prudence—avoiding early marketing spend.

(techcrunch.com)

Startup e-bike sharing delivery services

Flipper Cloud Ditches Per-Seat Pricing for a Fairer Model

2024-12-28

Flipper Cloud is abandoning its per-seat pricing model in favor of a simpler, three-tiered fixed-price plan (Bronze, Silver, Gold) designed to cater to different team sizes and feature needs. The author argues that per-seat pricing is cumbersome, budget-unfriendly, and discourages full product usage. The new strategy aims to simplify pricing, improve user experience, and incentivize long-term subscriptions by offering annual plans with extended data retention. Existing customers can retain their per-seat plan or switch to the new fixed pricing.

(blog.flippercloud.io)

Startup SaaS pricing software billing

Costco Rejects Shareholder Demand to Scrap DEI Initiatives

2024-12-28

Costco's board rejected a shareholder proposal urging a reevaluation of its diversity, equity, and inclusion (DEI) program, arguing it poses legal and financial risks. The board countered that its commitment to DEI is crucial for fostering a respectful and inclusive workplace, boosting employee morale, and driving innovation. They maintained the program's legality and emphasized ongoing evaluations of its effectiveness. The decision highlights the ongoing debate surrounding DEI initiatives in American corporations.

(www.newsweek.com)

Startup Shareholder Proposal

Bench Platform to Shut Down December 27, 2024

2024-12-27

Bench, the accounting platform, announced it will cease operations on December 27, 2024. This unexpected closure will disrupt users, but Bench is committed to a smooth transition. They recommend switching to Kick accounting software, offering an exclusive deal. Further information on data access will be available on their website by December 30th.

(bench.co)

Startup platform closure accounting software data migration

Visualizing the YC Company Landscape

2024-12-26

Mike Alche has created a visualization tool showcasing the Y Combinator (YC) company landscape. This interactive tool provides a clear overview of the industries represented, investment relationships, and growth trajectories of YC-backed companies. Its intuitive design and clear charts offer a unique perspective on the YC ecosystem, revealing connections and trends among startups. This is a valuable resource for entrepreneurs, investors, and anyone interested in the tech industry.

(yc-map.vercel.app)

Startup Startups

MicroStrategy: The Rise and Fall of a Bitcoin Treasure?

2024-12-25

This article delves into the rise and potential fall of MicroStrategy's Bitcoin accumulation strategy. The company, through compelling narratives, inflated its share price far above its net asset value, profiting through share offerings and convertible bonds. However, this model relies on a constant influx of new investors. When this dries up, the Bitcoin yield will plummet, leading to substantial investor losses. The author argues that MicroStrategy's business model exhibits characteristics of a Ponzi scheme, ultimately destined for disaster.

(medium.com)

Startup Bitcoin Ponzi Scheme

The Walmart Effect: A Hidden Cost of Low Prices

2024-12-24

Walmart, known for its low prices, has long been considered a boon for lower- and middle-income families. However, two new research papers challenge this view. The studies find that while Walmart lowers consumer prices, it also leads to decreased income and increased unemployment in communities, with the negative effects outweighing consumer savings. This is attributed to Walmart undercutting local competitors, reducing jobs, and leveraging its monopsony power to suppress wages for both suppliers and employees. This raises questions about the "consumer welfare standard," which prioritizes low prices as a measure of economic health. The research suggests that a singular focus on low prices can lead to long-term economic harm, prompting a reevaluation of policy priorities.

(www.theatlantic.com)

Startup economic impact consumer welfare

From Failed Game to Workplace Collaboration Giant: The Rise of Slack

2024-12-23

Tiny Speck's years-long effort to build the online game Glitch ended in failure, leaving the company facing financial ruin and potential team dissolution. However, CEO Stewart Butterfield saw a lifeline in the company's internal IRC server and its associated tools, which had streamlined team communication. These tools combined instant messaging, file sharing, searchable logs, and more, creating an efficient collaboration system. Building upon this, Tiny Speck pivoted to develop Slack, a workplace communication platform centered around team collaboration. Slack's success not only saved the company but also revolutionized how people work, becoming a benchmark for modern team collaboration.

(buildingslack.com)

Startup startup pivot

Finley Technologies Hiring Growth Associate to Fuel Fintech Expansion

2024-12-22

Finley Technologies, a Y Combinator and Bain Capital Ventures-backed fintech startup, is seeking a Growth Associate. This role focuses on the credit fund segment and requires 2-3 years of finance experience, strategic thinking, entrepreneurial spirit, and strong communication skills. The successful candidate will help shape go-to-market strategy, product roadmap, and more, collaborating with a team to drive company growth.

(jobs.lever.co)

Startup Growth Associate

California's Minimum Wage Hike: A Surprise Success

2024-12-22

California's September 2023 law raising the minimum wage for fast-food workers to $20 per hour faced immediate backlash, with predictions of widespread job losses and business closures. However, these predictions proved false. Since the law's April implementation, California's fast-food sector has seen job growth exceeding the national average. Economists' analyses revealed that increased wages didn't decrease employment; instead, reduced employee turnover and increased productivity lowered labor costs for employers. While prices rose, the increase was far less than anticipated, significantly outweighed by the wage increase for workers. This challenges assumptions about minimum wage impacts, highlighting biases in economic understanding and the role of media in disseminating misinformation.

(www.theatlantic.com)

Startup minimum wage employment

SignWith: Pay-per-use E-signature Solution for Small Businesses

2024-12-21

SignWith is a pay-per-use e-signature service designed for small businesses and freelancers, offering a compelling alternative to expensive monthly subscription models like DocuSign. It eliminates hidden fees and complex processes, allowing users to pay only for documents that are actually signed. With mobile-friendly functionality and reliable customer support, SignWith simplifies document signing for businesses of all sizes, from occasional use to frequent workflows.

(signwith.co)

Startup e-signature pay-per-use small business

OwlEars Launches OwlBrain AI for Unfiltered Customer Feedback

2024-12-19

OwlEars, the creator of the world-famous feedback platform Sarahah, has launched OwlBrain AI. This new platform allows businesses to collect pure, raw feedback directly from their customers' minds. Unlike lengthy surveys, customers can easily share their thoughts via link, QR code, or website widget. OwlBrain AI provides AI-powered insights to help businesses improve their products and services. A 15-day free trial is available, no credit card required.

(www.owlears.com)

Startup customer feedback

Beyond Code Yellow: A Startup's Guide to Tackling Tough Problems

2024-12-19

This article, penned by a seasoned tech executive turned investor turned founder, shares insights from his experiences at Instacart and Beacon. He critiques the overuse of 'Code Yellow' – a crisis-mode problem-solving approach – noting its effectiveness but also its negative impact on team morale. He proposes a more sustainable alternative: 'Sweating the Problem.' This involves removing hidden constraints (e.g., the 'keep the lights on' fallacy), running multiple solutions in parallel, avoiding premature scaling concerns, and breaking down departmental silos. The core is building team resilience and problem-solving muscle, fostering a culture where proactively tackling tough challenges is the default.

(nilam.ca)

Startup problem-solving team management

Amazon Updates FBA Inventory Reimbursement Policy: Manufacturing Cost Takes Center Stage

2024-12-19

Amazon announced an update to its Fulfillment by Amazon (FBA) inventory reimbursement policy, effective March 10, 2025. The new policy will reimburse sellers based on the manufacturing cost of lost or damaged inventory, with sellers able to provide their own cost or use Amazon's estimate. While aiming for greater transparency and predictability, the change has sparked seller concerns about potentially lower reimbursements, especially for handmade sellers. Amazon also introduced automatic reimbursements for items lost in their fulfillment centers.

(sellercentral.amazon.com)

Startup Amazon FBA inventory reimbursement manufacturing cost

Bank of North Dakota: A Century of Success, Boosting State's Economy

2024-12-18

The Bank of North Dakota (BND) is the only state-owned and -operated general-service bank in the United States, established in 1919 to foster agriculture, commerce, and industry. It leverages state funds to provide loans and financial services for infrastructure projects, agriculture, and small businesses, and acts as a wholesale bank for local institutions. BND played a crucial role during the 2008 financial crisis and the 2020 COVID-19 pandemic, demonstrating its profitability and positive impact on the state's economy. Its unique model has made it a standout success story in the American financial system.

(en.wikipedia.org)

Startup state-owned bank economic development financial services

Railway: Automating Revenue, Not Sales

2024-12-18

Railway shares its journey of shifting from traditional sales to automated revenue growth. Initial attempts at traditional sales proved ineffective. They pivoted to a product-led growth (PLG) model and developed a regression model to predict customer upgrades or churn. This model uses factors like successful/failed builds, configured regions, support requests, and feature adoption to score customers, identifying those needing assistance. Proactive support and this targeted approach boosted revenue and customer satisfaction, leading to sustainable business growth.

(blog.railway.com)

Startup automated revenue product-led growth regression model

Startup Failure After 3 Years: Founder Open-Sources All Code

2024-12-17

After three years, Dylan Huang's developer tools startup, Konfig, has shut down. Konfig focused on simplifying API integrations, with its core product being an SDK generator alongside API documentation and testing tools. Despite gaining some early traction, the company failed to achieve hyper-growth due to challenges in securing contracts and low pricing. A pivot to a B2B SaaS AI product also proved unsuccessful. Now, Huang is open-sourcing Konfig's entire codebase – including the core product, failed pivots, and various supporting scripts – hoping it will be beneficial to others. While the startup ended in failure, Huang emphasizes the invaluable lessons learned.

(dylanhuang.com)

Startup startup failure open source code API development tools

Zaymo, YC-backed Startup, Seeks Founding Engineer

2024-12-17

Zaymo, a Y Combinator-backed e-commerce email marketing startup, is hiring a Founding Engineer. Zaymo transforms e-commerce emails into shoppable landing pages, allowing purchases without leaving the inbox. The company is experiencing hyper-growth and seeks an experienced full-stack engineer to help build the future of email marketing. The ideal candidate has 2+ years of startup engineering experience, proficiency in TypeScript, Remix, and AWS, and a positive, fast-moving, collaborative attitude. Zaymo offers competitive salary, equity, and relocation assistance.

(www.ycombinator.com)

Startup Engineer

Negotiating with Infringers: A Better Option for Creative Professionals

2024-12-16

When a creative professional's copyright is infringed, litigation isn't the only option. This article's author, a lawyer, suggests considering negotiation with the infringer. Negotiation is quicker and cheaper than litigation and may yield benefits beyond monetary compensation, such as promotion and collaboration opportunities. The author points out that most infringements are not malicious but due to negligence. Through negotiation, adversaries can be transformed into collaborators, leading to long-term success. Of course, if negotiations fail, litigation remains a last resort.

(www.thelegalartist.com)

Startup intellectual property copyright infringement negotiation

Fractional Jobs: The Rise of the Fractional Workforce

2024-12-15

Fractional Jobs is a job board specializing in fractional work, connecting companies with expert part-time talent. Offering a flexible alternative to full-time hires, the platform features a wide range of roles across various functions, from engineering and marketing to design and finance. Companies benefit from access to specialized skills on a monthly retainer basis, while professionals can build their careers and earn supplemental income. The platform boasts a large network of pre-screened candidates and promises quick matches between companies and talent.

(www.fractionaljobs.io)

Startup fractional work part-time jobs freelance

Founders Over 40: Redefining Success

2024-12-15

This article explores the experiences of founders over 40, highlighting a shift in their definition of success compared to their younger counterparts. With increased family responsibilities and a longer life perspective, these founders prioritize work-life balance, seeking more stable and predictable income. Their accumulated wisdom allows for quicker pattern recognition, more pragmatic decision-making, and a willingness to explore alternative paths like acquisitions or joining larger organizations. This doesn't signify a lack of ambition, but rather a clearer understanding of the costs (time, energy, personal life) associated with different paths, and a more effective leveraging of their accumulated skills and experience.

(justinjackson.ca)

Startup founders over 40 redefining success

Starting a Business at 62: A Father's Inspiring Journey

2024-12-15

At 62, after retirement, the author's father bravely started his own business, breaking free from a lifetime of self-imposed limitations stemming from a challenging childhood. He overcame his ingrained fear of risk, growing his business from humble beginnings to a thriving small shop. This isn't just a story of entrepreneurship; it's a testament to the power of pursuing dreams at any age, a beacon of inspiration showing that it's never too late to achieve your goals.

(thoughts.jatintiwari.com)

Startup entrepreneurship late-in-life career inspiration

Crystal Ball Challenge: Knowing the Future Isn't Enough to Guarantee Riches

2024-12-15

Elm Partners conducted an experiment called the "Crystal Ball Challenge," where 118 finance students traded stocks and bonds using the Wall Street Journal's front page from one day in the future (with price data blacked out) over 15 days. The results were surprising: despite having future information, most participants didn't profit, averaging a mere 3.2% gain. Experienced traders, however, performed exceptionally well, averaging a 130% gain. The experiment demonstrated that even with 'future' knowledge, successful investing requires sensible position sizing. This research highlights the importance of decision-making under uncertainty and position sizing, offering valuable lessons for financial education.

(elmwealth.com)

Startup investment strategy risk management market prediction

Carta's Difficult Subscription Cancellation Process Sparks Outrage Among Founders

2024-12-12

Funding management software Carta is facing criticism for its cumbersome subscription cancellation process. Several founders have taken to social media to complain about the difficulty of cancelling their subscriptions, citing mandatory meetings scheduled well after their renewal dates. While Carta attributes the issue to a temporary staffing shortage, competitors highlight their straightforward cancellation methods, involving simple clicks or emails. This controversy raises concerns about Carta's customer service and cancellation policies, underscoring the importance of careful consideration when choosing service providers.

(techcrunch.com)

Startup subscription cancellation startup

Former Twitter Founder Launches Mozi, a Social App Focused on Offline Connections

2024-12-12

Ev Williams, founder of Twitter and Medium, has launched a new social app called Mozi, aiming to redefine the essence of social interaction. Unlike content-focused social media, Mozi prioritizes helping users build and maintain relationships with people in their real lives. By integrating with users' contact lists, it shows when users and their acquaintances will be in the same location (city or event), facilitating offline meetings. Mozi emphasizes privacy, lacking public profiles and follower counts, aiming to be a private platform promoting genuine social connections.

(ev.medium.com)

Startup social app relationships privacy

Bonscore: Independent Credit Scoring for Businesses

2024-12-12

Bonscore offers an independent and transparent credit scoring service for businesses. Data is sourced directly from the company register, ensuring objectivity and preventing manipulation. Unlike traditional credit agencies, Bonscore uses proprietary algorithms to assess the probability of default, providing industry benchmarks for comparison. This empowers businesses to evaluate the creditworthiness of potential and existing clients, competitors, and suppliers, leading to more informed business decisions such as: vetting new clients, analyzing existing client payment behavior, participating in tenders, assessing supplier reliability, analyzing competitor financial health, and making credit decisions.

(bonscore.org)

Startup business credit scoring risk assessment business decisions

Great Question (YC) Hiring People Operations Manager

2024-12-12

Great Question, a YC-backed startup simplifying customer research, is seeking an experienced People Operations Manager. This role will focus on streamlining recruitment, onboarding, compensation standardization, and enhancing company culture to boost employee engagement and retention. The ideal candidate will have 3+ years of experience in people operations, expertise in compensation and performance management, excellent communication skills, and a proven ability to thrive in a remote work environment. This is a crucial opportunity to contribute to a rapidly growing startup.

(www.ycombinator.com)

Startup Hiring People Operations YC Startup

Category: Startup