#USA Here are the 82 startups from day 2 of Y Combinator’s S19 Demo Days

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Team TechCrunch was back for Day 2 of Y Combinator’s Summer 2019 Demo Days where we heard from another massive chunk of startups that are taking disruption very seriously, even if they’re aiming to upend companies that only launched in Y Combinator a few classes ago.

The total class of on-record Demo Days launches came to 166 startups, after 82 presentations today. If you missed out on our tireless coverage yesterday, check that out too. We also picked our 11 favorites from yesterday’s batch here.

Here’s what we all saw today:


  • Asher Bio: Starting off YC Day 2, this startup is trying to help your body stave off cancer. Asher Bio is building immuno-therapy drugs that ramp up your immune system to take on cancer cells. Existing therapies can lead to severe side effects, but the ex-Pfizer co-founders claim their early tests on mice have shown that they are “close to solving” the problem with 1,000x more precision than existing solutions.

demoday talar

  • Talar: No more grocery shopping or grocery placing — Talar delivers grocery and meal-kits directly to customers. Dubbing itself a “last-meter delivery” business, the company actually delivers groceries directly into customer’s fridges. The company charges a $10 delivery fee as well as a 10% mark-up on each product it delivers. Talar has launched in San Francisco and has 90 customers today.
  • spotLESS Materials: This startup created a liquid-infused coating designed to keep surfaces clean and repel anything, from water to poop. The coating itself is a super slippery surface that virtually nothing can attach to. spotLESS launched just two weeks ago and already has contracts and pilots in place worth $166,000. Some partners include the U.S. Navy and Pennsylvania State, which is using it in their bathrooms.
  • Vendr.com: With so many SaaS companies saturating Silicon Valley, there’s a need for another SaaS company that will manage your other SaaS subscriptions. Purchasing software is a broken system, in that different customers pay different prices for the same software. Vendr created a self-serve process to help companies purchase, renew and manage their software subscriptions, and they’re targeting high-growth early-stage companies as early customers in what they say is a $10 billion market. 
  • Trella: Trella connects shippers to truck drivers in the Middle East to improve efficiency and increase transparency. The company says that shipping costs 3x as much in the Middle East as it does in the U.S.
  • Business Score: Business Score is helping companies automate background checks on other businesses. The startup is looking to stamp out tired manual processes that largely mean picking up the phone and scouring documents. The single API taps data sources across the web to build out real-time profiles that can help customers scan businesses in an effort to prevent fraud, qualify leads and onboard new clients.
  • Fit to Form: For women that struggle to find clothes that fit, Fit to Form has created an online shopping platform for locating clothes that fit women according to their exact measurements. The startup, like many in the batch, is founded and led by a pair of Stanford computer science graduates. Fit to Form says there are 52 million women in the U.S. that spend $660 per year online shopping — a big opportunity to solve the “online shopping industry’s biggest challenge.” 

demoday shiru

  • Shiru: Shiru creates protein designed to replace dairy and eggs. Shiru leverages computational design to make new versions of the core ingredients that go into the food products we consume daily. Already, Shiru has identified seven viable protein candidates and has three letters of intent from major food and ingredient companies. 
  • Coco: Most money transferred from Venezuelan migrants back to their families goes toward food. Coco allows Venezuelan migrants to send food home rather than money. Coco says it is already making $10,000 in monthly revenue. The startup partners with mini markets to make food purchases and takes a 20% cut of their sales, allowing a commission-free outcome for customers. Coco’s founding team built the first bitcoin exchange in Venezuela. 
  • Arpeggio Bio: This startup provides an RNA-profiling technology for watching how medications work within the body. They call it a “debugger for cell biology.” With $750K in revenue this year, the company says they’re working with four of the top 10 pharma companies, including Novartis. 
  • Canix: The cannabis industry is growing rapidly, but unsurprisingly the farmers and government regulators are still figuring out how to navigate compliance smoothly. Today, farmers are having to manually tag every single marijuana plant they grow. Canix is building compliance software that helps farmers easily scan bar codes and send data to the government.
  • Gen1E Lifesciences: One of several biotech startups to pitch Tuesday morning, Gen1E claims to cure inflammatory diseases. The company uses computational chemistry to identify drugs that work for specific illnesses. The company is launching with a focus on ARDS, which currently has no treatment. Gen1E says they are targeting a $100 billion market for inflammatory and age-related diseases. 
  • Embrace: Designed to help developers push better code, Embrace makes it easy for mobile developers to identify bad code and fix bugs faster. Already, companies like Wish, Goat, OkCupid, Headspace and Boxed use Embrace. The company has grown to $1 million in annual recurring revenue. 
  • Microverse: This company calls itself a Lambda school for software developers in emerging countries. The Microverse model doesn’t employ teachers, but uses a peer-to-peer learning model to prepare its student-engineers for the professional world. The company makes money with an income-share agreement, in which students pay 15% of their salary to the startup (although it did not specify for how long). The founder says that 50,000 people have applied to Microverse since it launched in January 2019, and 100% of its first cohort graduated with a job and is now paying them back. Microverse says it’s making an average of $6,000 per student. Because there are no teachers to pay, the founders are claiming 90% margins. 
  • Wingman: Wingman is a bot for phone sales representatives. It listens to sales calls and generates cue cards in real time to suggest possible answers/responses. Charging $80-$100 per month per rep, they’re currently seeing $5K in monthly recurring revenue, with 55% month-over-month growth.

demoday kraftful

  • Kraftful: Kraftful is aiming to help the companies making smart home devices make apps that are less awful. The startup was founded by former IFTTT team members and is looking to makes “white label” apps that can offer uniform UIs with regular updates. They are working with IoT companies on a SaaS pricing model and say they already have a $300K LOI from one firm.
  • Encellin: This biotech startup has developed what it calls a “shark cage” to protect sells. The company, led by two PhD founders, will enter the clinic next year with a human trial focused initially on diabetes treatment. Ultimately, Encellin will go after all chronic disease with technology that treats missing, damaged or diseased cells with next generation cell transplants.
  • Proof Trading: This is an institutional equities broker that aims to get investors better prices. Already, Proof has letters of intent from six top-tier funds. The total addressable market is $7.4 billion per year.
  • Mudafy: This tech-enabled real estate startup considers itself the “Compass for Latin America.” In LatAm, selling and renting homes is a broken system, and an innovative solution could prove to be a $20 billion opportunity. Buyers and renters are hindered by bureaucratic policies that enforce high interest fees and expensive deposits. Mudafy wants to improve the renting and buying process with its software operations platform. 
  • Globe: Globe provides Airbnb-style home rentals, done by the hour. As an example use case, they mention traveling professionals that need private/quiet locations to work or take calls. The company says its current customers book an average of 2x a week.
  • Cuboh: Restaurants have kind of been bombarded by the app-ordering economy and have a handful of tablets dedicated to each delivery app. Cuboh is building an app that integrates the order volumes from these apps into a single experience so that restaurants don’t need multiple employees approving multiple orders on multiple tablets. 

demoday LUCID

  • Lucid Drone Technologies: Lucid builds drones that spray buildings with cleaning liquids and leases them out to cleaning companies for around $3K per month. They’ve currently signed contracts worth about $33K in monthly recurring revenue.
  • MyPetrolPump: This refueling service delivers gas to cars, trucks and generators for B2B customers in India. Since launch, MyPetrolPump has become profitable and grown to a monthly gross merchandise volume of $500K across its 1,400 B2B customers. 
  • Narrator: Narrator is a full-service data team for startups of any size. The team behind Narrator built WeWork’s data infrastructure, and wants to target more startups as early customers. The company says they’re generating $91,000 per month with this business model, but they aren’t stopping there. Narrator wants to build as a cross-company universal standard for data and grow out this library of shared analyses. This strategy allows the company to repurpose the analyses they produce and offer it to new customers. 
  • GitStart: GitStart allows you to send small coding tasks (from JIRA, etc.) to its global network of developers. They charge a fee for each task — but if the developer does a good enough job that you’d like to hire them more permanently, GitStart also makes a commission.
  • Hey Healthcare: More and more Americans are gaining insurance coverage for mental health services, but nearly half of therapist offices don’t take insurance, according to the team at Hey Healthcare, which is building automated medical billing software for therapists. The startup helps therapists get registered and bill insurers, they have already helped process $100K in insurance claims with early customers.

demoday paymongo

  • PayMongo: This FinTech startup targets the Philippines. Specifically, the company is bringing innovation to the payments infrastructure in the country, where the technology is years behind. Companies integrate directly to PayMongo’s APIs or, they can use their pre-built checkout forms, shareable via URLs. The company has signed up 900 merchants since it launched in June.
  • KubeSail: This cloud-hosting provider wants to be as powerful as AWS and as easy as Heroku. KubeSail is a deployment platform built on top of Kubernetes that’s experiencing 23% month-over-month growth. Today, about 3,200 developers have launched cloud applications on KubeSail. 
  • Zenith: This company is building a new virtual world that blends AI, VR and its backend tech to immerse users in new lives online. Zenith, which raised $120,000 on Kickstarter in one week, is the first cross platform world to exist on VR desktop and console. Essentially every screen you own is a window into their world. The company plans to monetize by taking cuts of every item bought or sold on their platform, like property and clothing. The founders have worked at Google and Unity, and co-produced with Oculus.
  • Multis: Multis is a bank to help companies use cryptocurrencies (for things like recurring payments to remote workers) and earn interest on their savings. Twelve weeks after launch, the company says they’re managing more than $2.8 million in crypto. They charge a 1% fee on every transaction, and $900 per year.
  • Vahan: The competing entities of the on-demand economy have some pretty major recruitment needs. Vahan is tackling the issue in India, helping companies like Uber and Zomato reach out to potential recruits via a WhatsApp bot. The startup is earning $20 per successful hire they recruit for their customers.

demoday draftbit

  • Draftbit: This tool is for building apps that are high quality and built from scratch, the company said. Using Draftbit you can build apps visually with production-ready source code. The tool entered beta in February and has worked with 5,000 teams since. The idea is that by using Draftbit, software developers can build apps more collaboratively. 
  • Rejuvenation Technologies: If this startup gets its way, it’ll make it so we all live longer. Through extending the protective cap of DNA that functions as an aging clock, called telomeres, Rejuvenation Technologies aims to reverse aging. Rejuvenation’s drug extends telomeres and is already testing in animals, and says that one dose given to a mouse appeared to turn back the clock the equivalent of five years in humans. The founders envision a world where people take the drug to extend their healthspan and lifespans. 
  • Carve: Carve is a marketplace where people rent cars from dealerships. Right now, 12 million cars are idly sitting at dealerships, depreciating in value. Car sales have declined by 30% since 2014, and if dealerships want to stay alive, they’ll need to find new creative ways to make money. Carve’s founders also believe the rental car industry as it stands doesn’t need to exist, creating a $12 billion opportunity. 
  • Apurata: Apurata provides small loans for Latin America. They did 1,488 loans in July, earning an average of $21 per loan. The company’s founders say that banks in Latin America approve only 9% of loans, whereas Apurata is currently approving around 26% of applicants. 
  • TrustedFor: LinkedIn is just such an awful platform that there’s space for a startup to disrupt it by just remaking it. TrustedFor is building “LinkedIn 2.0,” a platform for professional profiles that is centered around recommendations from people that the users have actually worked alongside. The startup is leveraging the YC network pretty heavily to get associated companies on board.
  • Data Mechanics: Claiming to be “the new Hadoop,” Data Mechanics is a tool for engineers. Their solutions automate performance tuning and other maintenance work for Apache Spark, an open-source computing framework. Ultimately, they plan to expand to provide an end-to-end platform in which data engineers write code and they run it for them. The service is currently live.

demoday Listle

  • Listle: Listle is a platform to listen to audio versions of stories on the internet. Listle, which launched in July 2019, has created a library of 900 audio articles. For customers, it costs $8.99 per month.
  • Digi-Prex: This monthly medication delivery platform says it is up to 15% cheaper than local pharmacies. The company is targeting patients with chronic diseases in India and using WhatsApp to acquire its customers, of which it now has 5,000. With 60 million Indians spending $150 per month on prescription medications, the company identifies a $9 billion opportunity. 
  • Cloosiv: A Starbucks-style mobile ordering experience for smaller coffee shops, aggregating many indie shops into one app, Cloosiv currently has more than 250 coffee shops, and is adding roughly three new shops per day. We wrote about Cloosiv here.

demoday figments

  • Figments: Figments is looking to take the eSports market by storm with a network of virtual influencers that the team hopes can become the “WWE for eSports.” The team is creating characters with fictional storylines and is bringing custom voice acting to tailor the characters to different users around the globe.
  • Vouch: Vouch provides business insurance to startups because “bad things happen to good startups,” the founder explained. Using Vouch, the insurance process starts at $200 per year which is apparently much cheaper than most products available on the market. Vouch also has risk management tools so companies can focus on company-building. Vouch has launched in Utah and will be in 10 states by the end of the year.
  • Tandem: Tandem is a virtual office for remote teams that lets people see who is online, what they’re working on and who is available to talk. The software takes a Discord-like approach to letting users see what work apps their co-workers are in. Currently, Tandem has more than 450 active teams using the product and is seeing 50% weekly growth. Already, companies like Airbnb, Spotify, Dropbox and WeWork use Tandem. 
  • The Custom Movement: This company wants to make custom sneakers at more accessible price points. “If you’re rich or poor, you should be able to afford cool sneakers that you love,” says the founder. The Custom Movement wants to build out the world’s first marketplace for custom sneakers made by independent artists, following the assertion that “Nike is evil.” Within a few weeks of launch, Custom Movement has 70 artists selling 7,000 sneakers on its platform, and has brought in $26,000 in sales.

demoday lazy lantern

  • Lazy Lantern: The startup analyzes your historical web app analytics and uses that knowledge to alert you if something unexpected happens (like traffic to a certain page suddenly spiking). You plug it into your existing analytics systems, and it’ll notify you via Slack if it detects an abnormality. They’re currently working 40 companies, and say they’ve received a letter of intent from Snap.
  • Vitau: The online pharmacy craze is still in its infancy even after high profile M&A in the space, and Vitau is looking to get at the forefront of that market in Mexico. The startup is launching a subscription pharmacy for patients with chronic diseases. Just by approaching their first target market of those prescribed diabetes medications, they say they’re entering what could be a $12B market.
  • Wren: This greentech startup helps people take action against climate change. Here’s how it works: users sign up on Wren and begin tracking their carbon footprint. Then, the company plants trees to make up for its users’ carbon footprint on a monthly basis. The company launched two months ago and has recently launched Wren as an employee benefit.
  • Sequence Bio: Sequence Bio is a genome project looking to leverage genetic data to discover new drugs. The company says the best data comes from genetically isolated populations and those with uniform medical records — Newfoundland has both. So far, Sequence Bio has collected over 800 samples and is working with pharma and biotech companies to license data for drug development. 
  • Curtsy: Curtsy is targeting Gen Z clothing buyers with its mobile marketplace for resale items. The founder says that Gen Z shoppers have different buying habits than previous generations, in that they seek fashion built for rotation. Buyers want to sell last week’s outfit to fund next week’s outfit, and need a marketplace to rotate out items. Cutsy believes it can offer this service and eventually make $2 billion in the U.S. 
  • Refinery Labs: The startup is building a drag-and-drop interface system for deploying new features using linkable code blocks. Refinery says the functionality it adds is automatically scalable, secure, and stable. 2 weeks after launching, they have 43 paying companies onboard. 
  • TradeID: Yesterday, we saw a Robinhood clone for India, today we’re seeing that same model built for Indonesia. It’s also using fractional shares so that people can get skin in the game with minimal buy-in. The team says they’re live and compliant in Indonesia and have logged $500k in transactions since launch.
  • Lofty AI Lofty AI is building what they claim to be the first reliable method for tracking neighborhood demand to help real estate investors make more informed investment decisions. Lofty AI recommends properties to investors and if the investors decide to purchase, they enter into a contract that gives them 20% of the profit. However, if the value of a property goes down, Lofty says they will cover all of the investors losses.

demoday Z Imaging

  • Z Imaging: This startup is creating augmented reality guided tools for surgical procedures. The aim is to make surgery easier and more accurate by providing surgeons with an internal view of the body. So far, Z Imaging has received letters of intent from leading hospitals worth about $360,000. For hospitals, Z Imaging charges $15,000 per month. Z Imaging is in the pre-FDA submission phase but expects to conduct a clinical study this January, and hopes to receive FDA approval by the end of next year. 
  • Tensil: This startup turns machine learning models into custom chips that can replace GPUs. AI companies depend on machine learning, and are spending $3 billion on GPUs. This company produces auto-generated chips that it says are 50% smaller, 10 times faster and 20 times more energy efficient than GPUs. 
  • FeaturePeek: FeaturePeek is working on a tool to help developers/designers get feedback earlier in the development cycle. They build a test environment for every GitHub branch/pull request. Users can comment directly on the page, and use the built-in tools to take screenshots. They are looking to charge users $16-19 per user per month. We wrote about FeaturePeek here.
  • Khabri: The podcast platform wave has washed over plenty of internet-immersed markets, but platforms like Apple Podcasts and Spotify lack traction in India. Many users are stuck with YouTube audio but Khabri is looking to build up a network of exclusive podcasts with 2,500 creators. The team already has 60,000 DAUs who use the app an average of 20 minutes per day.
  • Mindset Health: This startup founded built by two brothers is seeking to treat IBS using hypnotherapy. Mindset Health says they’ve already helped over 280 people improve their IBS, earning $5,600 in monthly recurring revenue. They claim IBS is a $3 billion market in the U.S. Mindset plans to scale its service to provide treatments for other issues, including anxiety and chronic pain.

demoday carry

  • Carry: Carry is a corporate travel assistant that helps you plan, book and offer support — all via Slack, but using real humans. This month, Carry has booked $160,000 worth of corporate travel. Current customers include Segment, Orthly, Stanford Graduate School of Business and others.
  • Treble.ai: A customer support platform that lets companies get feedback from users through SMS and WhatsApp. The company describes itself as similar to Qualtrics and Zendesk, but with one big difference: Qualtrics and Zendesk were built for desktop web and email. Treble is built for mobile-first, chat-based communication. Treble says there are 100,000 companies that serve their users through mobile apps, and it wants to be the startup that manages their customer support. The startup scored Colombian logistics unicorn Rappi as their largest customer, and is seeing $16,000 in MRR. 
  • AudioFocus: This team helps users hear their friends in noisy environments like restaurants and conferences. Their app builds a fingerprint of your friend’s voice (or “voice prints” as they call them) based on a few minutes of recorded speech, then filters out other sounds and voices that don’t match this fingerprint and plays this edited audio stream to the user through headphones.
  • Mighty Health: Mighty Health is creating an app that replicates some of the experiences of cardiac rehab centers. Insurance companies are paying for people who have suffered from heart problems to get healthier and avoid further hospital trips, but many patients complain about the cardiac rehab programs being too far away or too inconvenient to access. There’s an app for that.
  • Asayer: Asayer’s software shows video of everything a company’s customers do on its software to identify bugs. It’s like looking over your user’s shoulder, the company’s founder explains, making it much easier for teams to instantly identify where the problems in their code are. Asayer’s vision is to go after the $10 billion market of people developing web apps. Asayer launched in June and says it has tripled its revenue since then.
  • Gmelius: Gmelius is a Gmail tool built to help teams manage projects, operate a help desk and automate daily processes. The team aims to replace Mailchimp, Asana, Trello, Zendex and many more by integrating with your Gmail inbox. Gmelius currently has 100,000 daily active users taking with $180,000 of monthly recurring revenue. 
  • Mipos.dev: This team is building a restaurant operating system for Latin America-based businesses. The Latin America point-of-sale market for businesses is worth $2 billion. Online ordering apps represent 20% of restaurant sales in Latin America, but restaurants don’t have passable hardware or software options to manage this growing demand. Multiple tablets are needed for multiple services and there’s no centralized software to help businesses manage online ordering. mipOS wants to be a one-stop-shop management system for restaurants. 

demoday voyage

  • Voyage Biomedical: (IMAGE) Voyage Biomedical is creating a system which the company says limits brain damage during an ischemic stroke — where a clot prevents blood flow to the brain — by quickly cooling the brain until doctors are able to remove the blockage. They’ve tested the device on a pig while stopping blood flow to the brain; they say the pig survived, and made a full recovery. Co-founder Robert Schultz is a cardiac surgeon.
  • LineLeap: What OpenTable is for restaurants, LineLeap wants to be for bars and nightclubs. The company is the app experience for alcohol, people can pre-order drinks or pay to skip the line at a particularly packed bar. The teams says that they’ve amassed $30k in MRR and helped 1 customer earn an extra $25k per month just by letting customers pay to skip lines.
  • ReverCare: This company has created a platform for helping people care for their aging parents. ReverCare connects families to social workers, who in turn connect them to eldercare services and help with senior living and care logistics. The company says they are going after a $13 billion market. 
  • Hutsy: Hutsy is a real estate brokerage that aims to make it easier to buy houses through an online experience. Since launching four weeks ago, Hutsy has closed on three homes. Instead of hiring more real estate agents, Hutsy scales through its automation software. 
  • Eden Farm: Eden Farm delivers fruits and vegetables to restaurants in Indonesia. Restaurants are still purchasing poor-quality produce, and Eden Farm thinks it can replace the local middle-man in this equation while simultaneously helping local farmers. The platform provides a way for farmers to forecast the market demand for their produce. This isn’t a new idea; EdenFarm wants to be the Sysco for Indonesia and eventually expand to neighboring areas in Asia. Eden Farms pegs the market opportunity at $30 billion. 
  • Beacons AI: Beacons AI is letting users further monetize their fandom. It’s a payments platform for influencers that allows users to pay to ask these influencers questions and receive short video responses. Beacons takes 25% of every transaction. 

demoday monaru

  • Monaru (IMAGE) People are lightly connected to lots of people on Facebook, Monaru is aiming to help customers foster closer bonds with a few close friends or family members. Monaru is building a virtual assistant for people’s personal relationships. The company’s app prompts people to connect with their closest friends and helps them reach their personal goals for their friendships. 

Shift HealthSubscription-based revenue cycle technology tailored for the healthcare industry. The business is the second from the founders, who claim to have built the best accounts receivable software for hospitals and clinics.

DirectShifts: Connects doctors to hospitals for short-term shift work, with 51 hospitals on board so far. DirectShifts uses technology to decrease the hiring onboarding process to two weeks and makes $5,000 per doctor per month. DirectShifts currently brings in $65,000 in net revenue per month and has a GMV of $435,000. 

Flux This startup enables Latin America-based merchants to accept payments with mobile wallets. Rappi gives people digital wallets, Flux makes it possible for merchants to accept these payments. They are able to process payments without intermediaries like Visa or MasterCard, signifying its intention to grow into not only a service, but a payments network. Flux’s tech is live in 32 restaurants a few weeks after its launch, and the founders say that 800 more are about to go live.

Midtype: Midtype is building backend engineering as a service, meant to allow frontend developers build more without the need for backend engineers. The founders say that 80% of backend features needed by most apps (the databases, payment systems, etc) are the same, so they provide it or make it easily addable.

Waves: Waves is creating a dating app with a focus on matching users with specific sexual fetishes. The company launched a few days ago and already has signed up 750 users. The company says that their market opportunity could be 15 times the size of Grindr.

demoday symplex

Symplex:  The team is developing an AI-based doctor that can diagnose you using your smartphone. The startup says they’ve signed up 15 doctors in the first few weeks, with a goal of expanding into a $2.6 billion market. Here’s how it works: first, you tell Symplex how you’re feeling, then, the company’s machine learning algorithm gauges your condition and provides a detailed initial diagnosis, which is then stored and saved.

Boost Biomes: Boost Biomes has a spray treatment for crops that prevents mold for up to 11 days. Currently, Boost Biomes has more than $1 million worth of letters of intent with customers who will be able to either use the product in the field or after harvest.

Percept.AI: This startup is creating an AI support agent that immediately resolves common customer support tickets. Other solutions can take over 3 weeks of onboarding, quality is often insufficient and the AIs only end up resolving between 10-30% of tickets. Percept.AI says their tech could work to identify 1.2 billion support tickets that go outstanding. They say they can immediately resolve up to 50% of tickets without human intervention, what it describes as an exciting $22 billion market. 

Covela: Covela is an online insurance broker for small/medium businesses in Latin America. The company says it saves customers 40% over competition in the region. 

Stoic: Stoic is an emotional tracking app that checks in with users twice per day to better understand how they are feeling and what obstacles they’re up against. The app guides its “thousands” of users on how to de-stress, feel less angry and improve relationships. Stoic, which charges $70 upfront for an entire year, says its revenue is growing 52% month over month, citing 40% retention rates.

Dover: Dover is a hiring platform that is entirely automated. The software is designed to understand the skillsets your company is looking for and then engages in outbound recruiting. Dover’s candidate sourcing tech has cut humans out of the process, which the company says improves margins. Dover currently has 18 paying customers and is doing $68,000 a month in revenue. 


And that’s a wrap!

Thanks for reading through the full list, we’ll be scouring through our top picks for a post coming soon and we’ll be back at Y Combinator Demo Days next year for their winter 2020 class.

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#USA Why are revenue-based VCs investing in so many women and underrepresented founders?

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This guest post was written by David Teten, Venture Partner, HOF Capital. You can follow him at teten.com and @dteten. This is part of an ongoing series on revenue-based investing VC that will hit on:

A new wave of revenue-based investors are emerging who are using creative investing structures with some of the upside of traditional VC, but some of the downside protection of debt.

I’ve been a traditional equity VC for 8 years, and I’m researching new business models in venture capital. As I’ve learned about this model, I’ve been impressed by how these venture capitalists are accomplishing a major social impact goal… without even trying to.

Many are reporting that they’re seeing a more diverse pool of applicants than traditional equity VCs — even though virtually none have a particular focus on women or underrepresented founders. In addition, their portfolios look far more diverse than VC industry norms.

For context, revenue-based investing (“RBI”) is a new form of VC financing, distinct from the preferred equity structure most VCs use. RBI normally requires founders to pay back their investors with a fixed percentage of revenue until they have finished providing the investor with a fixed return on capital, which they agree upon in advance. For more background, see “Revenue-based investing: A new option for founders who care about control“.

I contacted every RBI venture capital investor I could identify, and learned:

  • John Borchers, Co-founder and Managing Partner of Decathlon Capital, reports that “37% of our portfolio companies would be considered ‘impact’ qualified companies. This includes companies that would meet most institutional definitions for impact investing (women, minority, and veteran owned/run businesses, including LMI (“Low to Moderate Income”) and CRA (“Community Reinvestment Act”) qualified companies. While we do lots of work in these areas due to the attractive opportunity set, we are not an impact investor, and impact qualification is not a criterion that we use in evaluating or funding companies. On an organic basis, 13% of our portfolio companies are women-owned or run businesses, while 19% of the companies we work with are minority-owned or run. When you look at the composition of the entire founding or executive teams, the number of companies with either a woman or minority in management jumps even higher and is north of 50%.”
  • Indie.VC reports, “…50% of the teams we’ve funded are led by female founders and nearly 20% are led by black founders.”
  • Lighter Capital reports that they’ve funded companies in 30 states, including well established startup hubs and less mature ecosystems.
  • According to Derek Manuge, CEO of Corl, in the past 12 months, 500+ companies have applied to Corl for funding. Of the ones who received capital, “30% were led by women, and 40% were led by executives of non-Caucasian or of mixed ethnic origin.”
  • Feenix Partners reports that “35% of our portfolio companies have either a female or minority (non-Caucasian) CEO or Owner.”
  • Michelle Romanow, co-founder and CEO of Clearbanc, says that “We have funded eight times more women than the venture capital industry average – probably because we’re not doing meetings, which is an amazing accomplishment, and that’s not because we do different sourcing or anything else. It was just because we looked at data.” (Note that Clearbanc has a somewhat different business model than the RBI VCs I list here.)
  • Founders First Capital is the only RBI VC I’ve identified with a specific focus on underrepresented founders. Kim Folsom, Co-Founder, reports that as of August 2019, Founders First’s portfolio was 80% women and 55% women of color; 70% people of color; 20% military veterans; and 71% located in low/moderate income areas. 85% of their companies have under $1m in annual revenues. I can also announce exclusively that according to Kim Folsom, “Founders First Capital Partner (F1stcp) has just secured a $100M credit facility commitment from a major institutional impact investor. This positions F1stcp to be the largest revenue-based investor platform addressing the funding gap for service-based, small businesses led by underserved and underrepresented founders.”

By contrast, according to PitchBook Data, since the beginning of 2016, companies with women founders have received only 4.4% of venture capital deals. Those companies have garnered only about 2% of all capital invested. This is despite the fact that the data says that in fact you’re better off investing in women.

Paul Graham href=”http://www.paulgraham.com/bias.html”> observes, “many suspect that venture capital firms are biased against female founders. This would be easy to detect: among their portfolio companies, do startups with female founders outperform those without?

A couple months ago, one VC firm (almost certainly unintentionally) published a study showing bias of this type. First Round Capital found that among its portfolio companies, startups with female founders outperformed those without by 63%.”

Image via Getty Images / runeer

Why are RBI investors investing disproportionately in women & underrepresented founders, and vice versa: why do these founders approach RBI investors? 

I’d argue it’s not that RBI is so unbiased and attractive; it’s that traditional equity VC is biased structurally against some women and underrepresented founders.

The Boston Consulting Group and MassChallenge, a US-based global network of accelerators, partnered to study why “women-owned startups are a better bet”. Through their analysis and interviews, BCG identified three primary reasons why female founders are less likely to receive VC funds.

The study used multivariate regression analysis to control for education levels and pitch quality to conclude that gender was a statistically significant factor. I argue that these 3 reasons are much less applicable for RBI investors than for conventional VCs.

  1. Less need for a belief in breakthrough technology. From the study: “More than men, women founders and their presentations are subject to challenges and pushback. For example, more women report being asked during their presentations to establish that they understand basic technical knowledge. And often, investors simply presume that the women founders don’t have that knowledge.” However, companies with a focus on early profitability are less likely to require an investor to believe in complex, hard-to-predict new technology which is hard to diligence. Instead, the company can pitch itself based on a credible financial projection.
  2. Realistic projections. “Male founders are more likely to make bold projections and assumptions in their pitches,” BCG observes, while, “Women, by contrast, are generally more conservative in their projections and may simply be asking for less than men.” However, to raise RBI a woman founder does not need to promise a valuation of $1 billion within 5 years. Rent the Runway co-founder and CEO Jennifer Hyman said in a recent interview with CNBC’s Julia Boorstin, “I haven’t been given the permission or privilege to lose a billion every quarter… I’ve had to bring my company towards profitability…”
  3. Concentration in consumer/branded products startups. BCG reports that, “Many male investors have little familiarity with the products and services that women-founded businesses market to other women”—especially in categories such as childcare or beauty. However, RBI investors report that they see a lot of proposals for ecommerce and consumer packaged goods geared to mothers. Meghan Cross Breeden, Cofounder of Amplifyher Ventures, observes, “Personal customer attachment shouldn’t be a factor in investing; the early investors in Snapchat and Facebook weren’t the Gen Z target demo. Rather, I would imagine that one explanation of women garnering rev-share modes of financing is the prevalence of women-led companies in the consumer/branded goods field, which systemically is more tangible and revenue driven. Therefore, there’s more revenue to share – as opposed to the typical venture business, which requires capital upfront before a J curve of growth.”

Traditional equity VCs are looking for high-risk, high-reward, “swing for the fences” models. The founders of such companies inherently are taking financial risk, reputational risk, and career risk.

Paul Graham, co-founder of Y Combinator, said, “few successful founders grew up desperately poor.” Ricky Yean, a serial founder, agrees: “building and sustaining a company that is “designed to grow fast” is especially hard if you grew up desperately poor”.

Most of the founders of the paradigmatic VC home runs were privileged: male, cisgender, well-educated, from affluent families, etc. Think Bill Gates and Mark Zuckerberg .

That privilege makes it easier for them to take very high risk. The average person, worried about students loans and long term employability, quite rationally is less likely to take the huge risk of founding a company. It’s far safer to just get a job.

Investors who back diverse teams can win much higher returns than the industry norm. Both RBI investors and the founders they back will hopefully benefit from this pattern.

For further reading

Note that none of the lawyers quoted or I are rendering legal advice in this article, and you should not rely on our counsel herein for your own decisions. I am not a lawyer. Thanks to the experts quoted for their thoughtful feedback.

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#USA Should your new VC fund use revenue-based investing?

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You’re working on launching a new VC fund; congratulations! I’ve been a traditional equity VC for 8 years, and I’m now researching revenue-vased investing and other new approaches to VC. The question I’m asking myself: should a new VC fund use revenue-based investing, traditional equity VC, or possibly both (likely from two separate pools of capital)?

Revenue-based investing (“RBI”) is a new form of VC financing, distinct from the preferred equity structure most VCs use. RBI normally requires founders to pay back their investors with a fixed percentage of revenue until they have finished providing the investor with a fixed return on capital, which they agree upon in advance.

This guest post was written by David Teten, Venture Partner, HOF Capital. You can follow him at teten.com and @dteten. This is part of an ongoing series on Revenue-based investing VC that will hit on:

From the investors’ point of view, the advantages of the RBI models are manifold. In fact, the Kauffman Foundation has launched an initiative specifically to support VCs focused on this model. The major advantages to investors are:

  • Shorter duration, i.e., faster time to liquidity. Typically RBI VCs get their capital back within 3 to 5 years.

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#USA DoorDash acquires autonomous driving startup Scotty Labs

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DoorDash has been on an acquisition tear of late with Scotty Labs as its latest target. Terms of the deal were not disclosed, but this comes after DoorDash acquired Caviar in a deal worth $410 million.

Scotty Labs, a tele-operations company that is working on technology to enable people to remotely control self-driving cars, raised a $6 million seed round from Gradient Ventures with participation from Horizon Ventures and Hemi Ventures last March. The startup had previously worked with Voyage for its self-driving cars in retirement communities.

“Our core belief at Scotty has always been that Autonomy + Remote Assistance is the future,” Scotty CEO Tobenna Arodiogbu wrote on Medium. “We have intentionally always considered ourselves to be the anti-hype company and focused intensely on developing core infrastructure and algorithms to ensure the safe deployment of autonomous vehicles.”

Meanwhile, DoorDash quietly brought on the two co-founders from Lvl5, another company that had built tech to create high solution maps for autonomous driving using crowdsourced imagery and computer vision to merge and process the images. In April, Lvl5 announced it was shutting down after the acquisition.

Details of how Scotty Labs and Lvl5 will fit into DoorDash’s business are nonexistent, but you could imagine DoorDash using Scotty’s technologies to remotely control delivery robots or other types of autonomous vehicles.

“We’ll share more updates in the near future but for now, we’re really excited to be part of the amazing DoorDash family and looking forward to building something magical together,” Scotty Labs co-founder Tobenna Arodiogbu wrote on Medium.

From what we understand, the Lvl5 deal was more of an acquihire and did not include any of the maps that were built using the company’s technology. Instead, startup Mapillary obtained that trove of hundreds of millions of images.

DoorDash would not comment on what the new hires are working on, but through its robot pilots and partnership with GM, the startup has made no secret of its interest in exploring autonomous technology, specifically looking at how it can improve the cost and efficiency of deliveries, and it would make sense that it would also want to have in-house expertise to own and manage those projects

DoorDash has experimented with delivery robots before. In 2017, DoorDash partnered with both Starship Technologies and Marble to test food delivery via robot. More recently, DoorDash announced a partnership with GM’s Cruise to test self-driving food delivery cars. DoorDash is also beefing up its in-house team of autonomous and navigation specialists.

This investment in autonomous through its acquisition of Scotty Labs and acquihire of the team from Lvl5 comes at a time when DoorDash says it is revamping its policies around driver wages.

The enthusiasm and potential of autonomous had led to startups creating literally dozens of interesting products that focus on different aspects of this field. But it will take a village to get this tech off the ground, which means that consolidation is inevitable.

DoorDash — operating on the principle of economies of scale — has been pretty aggressive in positioning itself as one of those consolidators. We have heard it tried to merge with Postmates. It bought Caviar this summer. And it has raised an absolute ton of money. In May, DoorDash raised a $400 million round valuing it at $12.6 billion. Meanwhile, DoorDash’s main competitor, Postmates, is gearing up to go public this quarter.

As technology becomes a key way for the crowded arena of delivery startups to differentiate themselves, investing in its own autonomous tech R&D — by way of picking up some of these disparate startups that may have struggled to survive on their own — is one way for DoorDash to build out that tech cred.

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#USA YC-backed Stoic is a journaling app with a focus on understanding your feelings

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The process of using the Stoic journaling app is simple: You open the app in the morning and the evening, when you’ll prompted to answer a couple questions and perform a few simple exercises.

For example, this evening the app asked me to rate my current level of fulfillment and to identify what made me smile today, while also pointing me to guided exercises like journaling and breathing.

Stoic is part of the current batch of startups at Y Combinator (it’s taking the stage today at Demo Day). Founder Maciej Lobodzinski told me that his goal is to help users understand the different factors influencing their mental and emotional state.

“The core of the app is: We have this insight and we see what influences your mood and what you feel,” Lobodzinski said. He suggested that this is very different from the “super transactional” idea embedded in my other mental health and wellness apps, where “you pay for my app and you feel better.” In his view, “You should feel how you feel. It’s okay, how you feel, but you should know why you are feeling this way.”

So once there are a couple weeks of data in the app, you should be able to look back and see how you were feeling on a certain day, and if there were activities that made you feel more or less fulfilled. Over time, Lobodzinski hopes to add more insights about “what influenced you, why you feel this way, why you are productive.”

Stoic screen shots

As the name implies, Stoic is inspired by Lobodzinski’s interest in classical Stoic philosophy (he’s not the first to suggest that the approach has direct applications in the tech industry), and the app even includes quotes from Stoic philosophers.

“It’s an extremely practical framework,” he said. “When I talk to users, there are entrepreneurs, investors, traders — people who found out about the app because they were looking for how to deal with their stress …
If you are stressed with your everyday life and you can get the advice of the emperor of Rome, who dealt with much more serious things, it’s amazing how much better you can feel after that.”

At the same time, users have the option to receive quotes from different schools of thought — not just Stoicism but also Buddhism, Taoism and Catholicism. For some users, their app experience won’t be explicitly focused on Stoicism, but Lobodzinski said that even then, it forms the “spine” of the app’s approach.

The basic app is free, but Stoic charges $27.99 per year for a premium version that includes iCloud syncing and additional content.

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#USA MoviePass exposed thousands of unencrypted customer card numbers

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Movie ticket subscription service MoviePass has exposed tens of thousands of customer card numbers and personal credit cards because a critical server was not protected with a password.

Mossab Hussein, a security researcher at Dubai-based cybersecurity firm SpiderSilk, found an exposed database on one of the company’s many subdomains. The database was massive, containing 161 million records at the time of writing and growing in real-time. Many of the records were normal computer-generated logging messages used to ensure the running of the service — but many also included sensitive user information, such as MoviePass customer card numbers.

These MoviePass customer cards are like normal debit cards: they’re issued by Mastercard and store a cash balance, which users who sign up to the subscription service can use to pay to watch a catalog of movies. For a monthly subscription fee, MoviePass uses the debit card to load the full cost of the movie, which the customer then uses to pay for the movie at the cinema.

We reviewed a sample of 1,000 records and removed the duplicates. A little over half contained unique MoviePass debit card numbers. Each customer card record had the MoviePass debit card number and its expiry date, the card’s balance, when it was activated.

The database had more than 58,000 records containing card data — and was growing by the minute.

We also found records containing customers’ personal credit card numbers and their expiry date — which included billing information, including names, and postal addresses. Among the records we reviewed, we found records with enough information to make fraudulent card purchases.

Some records, however, contained card numbers that had been masked except for the last four digits.

The database also contained email address and some password data related to failed login attempts. We found hundreds of records containing the user’s email address and presumably incorrectly typed password — which was logged — in the database. We verified this by attempting log into the app with an email address and password that didn’t exist but only we knew. Our dummy email address and password appeared in the database almost immediately.

None of the records in the database were encrypted.

Hussain contacted MoviePass chief executive Mitch Lowe by email — which TechCrunch has seen — over the weekend but did not hear back. It was only after TechCrunch reached out Tuesday when MoviePass took the database offline.

It’s understood that the database may have been exposed for months, according to data collected by cyberthreat intelligence firm RiskIQ, which first detected the system in late June.

We asked MoviePass several questions — including why the initial email disclosing the security lapse was ignored, for how long the server was exposed, and its plans to disclose the incident to customers and state regulators. When reached, a spokesperson did not comment by our deadline.

MoviePass has been on a rollercoaster since it hit mainstream audiences last year. The company quickly grew its customer base from 1.5 million to 2 million customers in less than a month. But MoviePass took a tumble after critics said it grew too fast, forcing the company to cease operating briefly after the company briefly ran out of money. The company later said it was profitable, but then suspended service, supposedly to work on its mobile app. It now says it has “restored [service] to a substantial number of our current subscribers.”

Leaked internal data from April said its customer numbers went from three million subscribers to about 225,000. And just this month MoviePass reportedly changed user passwords to hobble access for customers who use the service extensively.

Hussain said the company was negligent in leaving data unencrypted in an exposed, accessible database.

“We keep on seeing companies of all sizes using dangerous methods to maintain and process private user data,” Hussain told TechCrunch. “In the case of MoviePass, we are questioning the reason why would internal technical teams ever be allowed to see such critical data in plaintext — let alone the fact that the dataset was exposed for public access by anyone,” he said.

The security researcher said he found the exposed database using his company-built web mapping tools, which peeks into non-password protected databases that are connected to the internet, and identifies the owner. The information is privately disclosed to companies, often in exchange for a bug bounty.

Hussain has a history of finding exposed databases. In recent months he found one of Samsung’s development labs exposed on the internet. He also found an exposed backend database belonging to Blind, an anonymity-driven workplace social network, exposing private user data.

Read more:

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#USA Fitbit cofounders James Park and Eric Friedman are coming to Disrupt SF

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Ten years ago, a hardware startup launched a fitness device on stage at TechCrunch 50. The $99 gadget combined a pedometer with a diet monitoring system, designed to help wearers meet their fitness goals.

Of course, a lot has changed for Fitbit in the intervening decade. The company has since become synonymous with fitness trackers in the U.S. In 2015, it filed for a $358 million IPO.

After several years of defining the wearables category, things have gotten a bit rockier, however, as the company contends with increased competition from the premium Apple Watch and low cost trackers from companies like Xiaomi.

Through acquisitions like Pebble and Vector, the company has improved its fortunes by building its own smartwatch line. Fitbit has also begun to transition into the healthcare industry through partnerships wit companies like Blue Cross Blue Shield.

Fitbit’s cofounders James Park and Eric Friedman will join us on stage to discuss their process for growing a hardware startup and navigating often fickle industry trends.

Disrupt SF runs October 2 to October 4 at the Moscone Center in San Francisco. Tickets are available here.

Did you know Extra Crunch annual members get 20% off all TechCrunch event tickets? Head over here to get your annual pass, and then email extracrunch@techcrunch.com to get your 20% off discount. Please note that it can take up to 24 hours to issue the discount code.


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#USA The 11 best startups from Y Combinator’s S19 Demo Day 1

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Y Combinator, the genesis for many of the companies that have shaped Silicon Valley including Airbnb, PagerDuty and Stripe, has minted another 200 some graduates. Half of those companies made their pitch to investors today during Day 1 of Y Combinator’s Summer 2019 Demo Day event and we’re here to tell you which startups are on the fast-track to the unicorn club.

Eighty-four startups presented (read the full run-through of every company plus some early analysis here) and after chatting with investors, batch founders and of course, debating amongst ourselves, we’ve nailed down the 11 most promising startups to present during Day 1. We’ll be back Tuesday with our second round of top picks.


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#USA LA-based gaming company, Scopely, expands in Spain and Ireland

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The Los Angeles-based gaming company Scopely is expanding its geographical footprint in Spain and Ireland.

The company is building out its Barcelona offices, tripling its office space and planning to significantly expand its 100-person-strong team in the city. Meanwhile, Scopely is also planning to invest heavily in expanding its strategy-focused game studio, DIGIT, in Dublin.

Scopely didn’t say how many jobs it would be adding in either location.

The company has now hit lifetime revenue of more than $1 billion across its franchises and recently launched “Star Trek Fleet Command” and “Looney Tunes World of Mayhem.” Scopely also has licenses to develop games for World Wrestling Entertainment and The Walking Dead franchise.

“We are thrilled to expand our European footprint to accommodate our exponential growth,” said Javier Ferreira, co-CEO of Scopely, in a statement. “I am excited to further lean in to the Barcelona market, which has top-quality talent. The same is true in Dublin with top tech talent flocking to the area, and both offices have amassed impressive highly-specialized expertise. Our Dublin and Barcelona teams play a critical role in the Scopely journey, and we are actively hiring across both markets.”

The company also plans to double its footprint in its hometown of Los Angeles in 2020.

The company has raised more than $250 million in financing to date, from investors including Greenspring Associates, Greycroft Partners, Revolution Growth, Evolution Media Partners, Highland Capital Partners, Horizons Ventures, Sands Capital Ventures, The Chernin Group, Take-Two Interactive, Kobe Bryant, Arnold Schwarzenegger, Peter Guber, Jimmy Iovine and Brendan Iribe.

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#Blockchain High-Powered Mining Rigs Drive Bitcoin’s Accelerating Hashrate

High-Powered Mining Rigs Drive Bitcoin's Accelerating Hashrate

On August 19, the combined SHA-256 hashrate between the BCH and BTC networks touched a massive high of over 91 exahash per second (EH/s). One notable contribution to today’s network hashrates is the manufacturing of next-generation mining rigs that produce a significant number of terahash. Currently, the top machine released this summer is Pangolin’s Microbt Whatsminer M20S, generating a whopping 68-70 terahash per second (TH/s).

Also read: Another Self-Proclaimed Satoshi Fails to Sway Crypto Community

Bitcoin’s Hashrate Keeps on Climbing

After the birth of application-specific integrated circuits (ASICs) built for the SHA-256 consensus algorithm (BTC, BCH), the landscape of manufacturers has looked very different. Even over the course of the last two years, mining producers have changed substantially except for Bitmain, which has managed to survive through every stage. The top mining rig creators in 2019 include companies like Bitmain, Pangolin, Innosilicon, Ebang, Asicminer, and Canaan.

High-Powered Mining Rigs Drive Bitcoin's Accelerating Hashrate
The combined SHA-256 hashrate between BCH and BTC is steadily approaching 100 exahash per second.

Pangolin, Innosilicon, Bitmain, and Strongu have all produced new miners in 2019. The top mining rig this month is the new Pangolin Microbt Whatsminer M20S, a machine that produces 68-70TH/s at top speeds. Unlike most of the manufacturers located in China, the Shenzhen Bit Microelectronics Whatsminer M20S hasn’t sold out yet. The unit consumes about 3360W off the wall and its two fans have a higher sound level than most competitors as the M20S generates 75db.

High-Powered Mining Rigs Drive Bitcoin's Accelerating Hashrate
The Whatsminer M20S model from Pangolin/Microbt mining performs at 68 to 70TH/s with a power consumption of 3360W off the wall. The M20S version uses TSMC-created 12nm semiconductors.

The M20S has TSMC wafered 12nm chips powering the devices. Pangolin is known for creating machines that produce competitive hashrates but with different sized chips. More than a year ago when companies like GMO and other manufacturers were seeking to score 7nm chips, Pangolin was still using 28nm and 16nm chips. However, the Whatsminer M3 and M10 produced between 12TH/s to 33TH/s using those chips. Pangolin may have got a deal on the 12nm chips as TSMC had slow orders on the 12nm and 8nm in April. According to the business, there have been six batches of Whatsminer M20S models sold so far. Each device is $2,629, and at $0.13 per kWh, the device makes between $9-11.50 a day at current BTC prices and network difficulty. Today, at a price of $318-325 per BCH plus the difficulty (287,507,454.73), profits can fluctuate between -2% to +2% processing either the BTC or BCH chains. The new Whatsminer M20S has received good reviews in comparison to the Asicminer 8 Nano Pro which was released in May 2018.

High-Powered Mining Rigs Drive Bitcoin's Accelerating Hashrate
The new Whatsminer M20S has received decent reviews online and there’s a few filmed performance tests as well. Unlike the Asicminer 8 Nano Pro there are resellers on the second market for Pangolin/Microbt brand devices.

Three Antminer Models With More Than 50 Terahash

Statistics show that the Asicminer 8 Nano Pro would be the second most powerful SHA-256 miner with 76TH/s per unit. However, the company is completely sold out and second market reviews are not very good. In fact, there are videos and reviews online warning people not to invest in the Asicminer 8 and the 8 Nano Pro. There are no second market resellers and nearly all the reviews stemming from every Asicminer product in existence have been negative. With a machine launched last year that costs $11,600 per unit and requires a minimum order of five units, it seems most mining operations did not invest in this model.

High-Powered Mining Rigs Drive Bitcoin's Accelerating Hashrate
Bitmain’s Antminer S17 series produces between 50 to 56TH/s depending on the model. Reviews are good, the company is still shipping batches and there are second market resellers as well.

Following the Asicminer statistics, the next three miners in the top five are manufactured by Bitmain, namely the Antminer S17 Pro series (53TH/s), S17 (56TH/s), and the 50TH/s S17 Pro version. The three new Antminers pull in around $7-10 per day with electricity rates at $0.13 per kWh.

High-Powered Mining Rigs Drive Bitcoin's Accelerating Hashrate
Local reports in China have revealed that Bitmain recently placed an order for “30,000 7nm wafers from TSMC.”

Older Mining Rigs Still Profit

All of Bitmain’s new S17 series miners are available to the public and the latest batches begin shipping in December. The prices for the new Antminer models are between $2,727 to $2,969 per unit. The Bitmain mining rigs are equipped with TSMC wafered 7nm chips and depending on the model each machine consumes 1975W to 2520W off the wall. The only other company that manufactures a mining rig that performs above 50TH/s would be the sixth most profitable miner today: the Innosilicon Terminator 3 (T3). The T3 processes the SHA-256 algorithm at around 53TH/s and can make anywhere between $5-9 a day with an electric rate of $0.13 per kWh. Mining rig manufacturers that have a few machines that produce terahash just below the 50TH/s mark include the new Strongu STU-U8 (46TH/s) launched in January and the Ebang Ebit E11 ++ (44TH/s) released in 2018.

High-Powered Mining Rigs Drive Bitcoin's Accelerating Hashrate
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Newer machines producing 40-70+TH/s are definitely leading the pack despite the fact they pull a lot more wattage. Although with current crypto prices still quite profitable, many older machines are still taking in daily revenue. This includes the Antminer T15, Bitfury Tardis, and the Ebang Ebit E11+, making between $2-4 per day. At today’s prices, the two most profitable SHA-256 coins (BCH, BTC) continue to gain hashpower. The hashrate growth doesn’t look like slowing down anytime soon, with the new high-powered machines responsible for much of the increase.

What do you think about the next-generation mining rigs pushing the SHA-256 hashrate upwards? Let us know what you think about this subject in the comments section below.

Disclaimer: Readers should do their own due diligence before taking any actions related to the mentioned companies, and websites associated with this article. Bitcoin.com or the author is not responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services, mining manufacturers, and mining products mentioned in this article. This editorial review is for informational purposes only.


Image credits: Shutterstock, Bitmain, Pangolin-Microbt, Asicminervalue.com, Fork.lol, and Pixabay.


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