Archives

Business Models

Kanarys raises $3 million for its data-driven platform to assess diversity and inclusion efforts

Mandy Price was already a highly successful lawyer in private practice before she took the jump into entrepreneurship alongside two co-founders to launch Kanarys a little over one year ago.

The Harvard Law School graduated didn’t have to start her company, which helps businesses measure the efficacy of their diversity and inclusion efforts using hard data, but she needed to start the company.

Now, a year after its launch, the company counts companies like Yum Brands, the Dallas Mavericks, and Neiman Marcus among the dozen or so companies using its service and has $3 million in seed funding to help it expand.

For Price, the drive to launch Kanarys came from her own experiences working in law. It wasn’t the microagressions, or the lower pay, or casually dismissive attitude of colleagues toward her well-earned success that led Price to start Kanarys, but the knowledge that her experience wasn’t unique and that thousands of other women and minorities faced the same experiences daily.

I have had many things happen to me in the workplace that is similar to what many other women and women of color have dealt with and didn’t want to have my children have to go through similar issues,” Price said. 

So alongside her husband, Bennie King (himself a serial entrepreneur in the Dallas area), and her University of Texas at Austin and Harvard classmate, Star Carter, Price launched Kanarys in late 2019.

The company uses Equal Employment Opportunity reports and assessments of various policies involving promotion, recruitment, and benefits to track how a company is performing in relation to its industry peers.

“A lot of the inequities we see are from a structural and systemic standpoint. That is where Kanarys can see how they’re perpetuating inequity,” Price said. 

Kanarys starts with an independent assessment of a company’s policies and practices and then conducts quarterly surveys with employees of its customers to see how well they are meeting their stated goals and objectives. They also integrate with existing human resources systems to track things like pay equity and promotions.

The service has attracted the attention of the Rise of the Rest fund, Morgan Stanley, Jigsaw Ventures, Segal Ventures and Zeal Capital Partners, which led the company’s $3 million seed round.

“Organizations have typically tried to address this with individual interventions,” said Price. “What we’re saying is we have to address it on both fronts. So much of the inequities that we see are based off of institutional and systemic policies and practices.”

Not only does Kanarys track information on diversity and inclusion efforts for customers, but for job seekers there’s a database of about 1,000 companies which operates like Glassdoor . The focus is not just on worker satisfaction, but on how employees view the diversity efforts their employers are undertaking.

Notably, Kanarys founders join the (far-too-few) ranks of Black entrepreneurs launching businesses and raising venture capital. In 2017, studies showed that 98 percent of venture capital raised in the U.S. went to men, according to data provided by the company. Black entrepreneurs in general receive less than one percent of venture capital, and Black women founders make up only 0.6 percent of venture capital funding raised. 

“We know that a focus on DEI in business is not just the right thing to do for employees, it also makes good business sense,” said Price, CEO and co-founder of Kanarys, in a statement. “Kanarys’ DEI data arms companies, for the first time, to make precise, immediate, and informed decisions using real, intersectional metrics around their diversity goals and inclusion programs that ultimately drive bottom-line business objectives.”

 

Venture firm M13 names former Techstars LA managing director, Anna Barber, as its newest partner

The Los Angeles and New York-based venture firm M13 has managed to nab former Techstars LA managing director, Anna Barber, as its newest partner and the head of its internal venture studio, Launchpad.

Designed to be a collaborative startup company incubator alongside corporate partners, Launchpad focuses on developing new consumer tech businesses focused on M13’s main investment areas: health, food, transportation, and housing.

For Barber, the new position is the latest step in a professional career spent working both inside and outside of the tech industry.

Barber got her first taste of the startup world when she was poached from McKinsey to join one of the several online pet supply stores that cropped up in 1999. From her position as the vice president of product at Petstore.com, Barber got her taste of the startup world… and left it to become a talent manager and the co-founder of the National Air Guitar championships (no word if she managed air guitar talent).

Prior to launching the Techstars LA incubator program, Barber founded ScribblePress, a retail and digital publishing app, which was sold to Fingerprint Digital.

Anna Barber, partner, M13. Image Credit: Raif Strathmann

At M13, Barber will be working to recruit entrepreneurs to work collaboratively on developing startup consumer businesses that align with the strategic interests of M13’s corporate partners, like Procter & Gamble.

We will be bringing in founders in residence who will come in without an idea,” Barber said of the program. “We’re starting with a blank sheet of paper and building teams in partnership with entrepreneurs and in partnership with corporate partners who will bring their perspective and their IP. “

The EIRs will receive a small stipend and equity in the business, Barber said.

The starting gun for M13’s Launchpad  program was in 2019 and the program currently has managed to spin up three startups. There’s Rae, an developer of affordable women’s wellness products; and the beauty tech company OPTE; Kindra menopause products; and Bodewell for sensitive skin care, which were all developed alongside Procter & Gamble Ventures.

M13, for its part, is developing a strong team of women partners who are investing at the firm. Barber will join Lizzie Francis and Christine Choi on the investment team, something that Barber said was especially exciting.

“There is no better place for M13’s Launchpad than Los Angeles and no better person to lead it than Anna. M13 is home to a creative, diverse community of entrepreneurs and operators who want to make the world better by applying innovation in everything from media to biotech, prop tech to food,” said M13 co-founder Carter Reum. “We are excited for Anna to continue to lead LA’s center of entrepreneurs, mentors and investors with a rigorous Launchpad program and more exceptional partners and cohorts.”

VCs and startups consider HaaS model for consumer devices

I’ve been following consumer audio electronics company Nura with great interest for a few years now — the Melbourne-based startup was one of the first companies I met with after starting with TechCrunch. At the time, its first prototype was a big mess of circuits and wires — the sort of thing you could never imagine shrunk down into a reasonably-sized consumer device.

Nura managed, of course. And the final product looked and sounded great; hell, even the box was nice. If I’m lucky, I see a consumer hardware product once or twice a year that seems reasonably capable of disrupting an industry, and Nura’s custom sound profiles fit that bill. But the company was unique for another reason. A graduate of the HAX accelerator, the startup announced NuraNow roughly this time last year.

Hardware as a service (HaaS) has been a popular concept in the IT/enterprise space for some time, but it’s still fairly uncommon in the consumer category. For one thing: a hardware subscription presents a new paradigm for thinking about purchases. And that is a big lift in a country like the U.S., which spent years weaning consumers off contract-based smartphones.

That Nura jumped at the chance shouldn’t be a big surprise. Backers HAX/SOSV have been proponents of the model for some time now. I’ve visited their Shenzhen offices a few times, and the topic of HaaS always seems to come up.

In a recent email exchange, General Partner Duncan Turner described HaaS as “a great way to keep in contact with your customers and up sell them on new features. Most importantly, for start-ups, recurring revenue is critical for scaling a business with venture capital (and will help appeal to a broad set of investors). HaaS often has a low churn (as easier to put onto long-term contracts).”