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It's been a busy week at Crossover with a new investment into an exciting MicroVC fund and Noah organizing and hosting "Tech Day LA" for the NBA Players Association. More details below, but we have been leading the NBPA's tech programming since 2018, and this year's experience took things to a whole new level--including racing Coco delivery robots through an obstacle course, live auctioning of merch for charity on Whatnot, and touring rockets and space shuttles that will soon take astronauts into space at SpaceX. Looking forward to sharing the content and recap soon!

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Welcome to the 2-Minute Drill -- a curated selection of the week's hottest stories from the world of tech, all in 2 minutes.


As always, shoot me a note to learn more or if you just want to say 👋.

-Noah  


✉️ noah@crossovervc.com
📱 650.468.9543
📸 @crossovervc 

On my whistle...
EVENT SUMMARY


 
LOS ANGELES, CA, July 28, 2022 – The National Basketball Players Association (NBPA) announced the launch of Tech Day LA, its newest career development program for players taking place today in Los Angeles, CA. Led by Noah Lichtenstein, Founder and Managing Partner of early-stage venture capital firm Crossover VC, the NBPA’s Tech Day LA program has been designed to provide member participants with an engaging and comprehensive opportunity to learn about and experience first-hand the inner workings of the technology industry.

You can read the entire press release from the NBPA here and we will share the NBPA's recap videos and photos from the tours of Coco Robotics, Whatnot, SpaceX, and more in the coming weeks.
 
FIRST DOWN


 
Summer Health Turns Up the Heat with $7.5M Seed Round
Just in time for peak summer temperatures, this week New York-based pediatric telehealth startup Summer Health kept up the heat with a new $7.5 million in seed stage venture funding. This is the first reported round of funding for the company founded earlier this year.

Anyone with kids knows all too well that young ones don't wait to get sick or bump their heads between the hours of 9 to 5. And it doesn't help that infants and toddlers aren't the best at communicating their ailments. This often leaves parents with few options when their child wakes up in the middle of the night crying or when they roll out of bed and bump their head. Pediatricians aren't available at all hours and emergency room visits often require multiple hours of wait time and cost thousands of dollars.

According to studies, the average parent engages with their pediatrician 10 times per year during the first two years of their child's life, and 4 time per year thereafter. That's a lot of time spent, and a good reason for offering a more convenient solution to parents.

Enter Summer Health, a text-based telehealth messaging platform that aims to answer pediatric medical questions via text in 15 minutes or less. The most common ailments include fevers, bumps, rashes, bellyaches, and more.

The startup currently charges $5 for the first month and then $20 per month thereafter. Parents subscribing to the service get access 24/7 to board-certified pediatricians and family medicine doctors who draw on years of expertise and experience.

(more here)
SECOND DOWN


 
Nash Nabs $20M for Delivery Management Platform
This week, San Francisco-based delivery management startup Nash announced a new $20 million in Series A funding to help businesses get same-day deliveries from Point A to Point B more effectively. This brings the 2021-founded startup's total reported funding to nearly $28 million.

Delivery and logistics have become big business, whether it's getting your Amazon packages delivered in under 24 hours, or getting your burrito delivered by UberEats while it's still warm. But getting items from A to B is incredibly complex and can be the difference between a profitable and unprofitable business model and a happy vs. unhappy consumer.

Nash doesn't own any delivery infrastructure and doesn't manage any fleets of drivers. In other words, it is an asset light business model. Instead, it serves as a hub to help match businesses that need same-day deliveries with existing fleets that are looking to make the deliveries or expand their businesses. If you operate a local delivery fleet, you can make your drivers available on the Nash network and earn some extra coin. If you need a package delivered and don't care if the driver is from Acme delivery services or is an idle DoorDash driver, then Nash can operate as a centralized command center to connect supply and demand.

For businesses, Nash can provide access to existing fleets that offer on-demand, scheduled, and even multiple drop off deliveries. It currently operates in all 50 states, and with the new funding will look to scale the company and support more small and medium-sized businesses and enterprise customers.

As an aside, we caught up with Nash Co-Founder & CEO Mahmoud Ghulman last week and and were impressed with his vision and passion for solving these challenges of last-mile delivery. We wish him and the Nash team nothing but success going forward!

(more here)
THIRD DOWN


 
Pogo Sticks $14.8M to Monetize Your Personal Data
As privacy becomes an ever-growing concern for consumers (and regulators) a new consumer finance startup out of New York called Pogo is taking a different approach: if companies are going to use your personal data, you might as well get paid for it.

This is the premise behind the 2020-founded startup who this week announced $14.8 million in seed stage funding from a broad syndicate of investors. Here's how it works. Consumers download the Pogo app and opt-in to sharing their personal data such as transaction history with the company. From there, the app shows reward and recommendations that are tailored to you based on the information you agreed to share with the platform. Further, if the app uses your aggregated data to enable a brand to do user research or target you with ads based on that data, you can get paid.

In many ways, Pogo is taking a page out of the books of startups like Honey and Rakuten which serve as browser extensions that use your browsing data to help surface discounts and rewards. Pogo wants to effectively build a Honey for the real world where the app knows you're walking by a Starbucks and then Starbucks can push a reward offer to them based on this targeted data.

For many, this trade of data for potential rewards may pose an ethical dilemma. But for the startup and its users, the logic goes that if these companies are going to be mining you for your data anyway, you might as well get a taste.

(more here)

FOURTH DOWN


 
Stadium Live Scores $10M for Digital Sports Communities
This week, Toronto-based digital playground for sports fans Stadium Live Studios announced a new $10 million in Series A funding as it looks to build community around sports for Gen Z. This brings the 2020-founded startup's total funding to $13 million and a current reported valuation of $32 million.

On Stadium Live, users create a digital avatar, join online communities, and participate in games and activities like livestreams, polls and trivia centering around core sporting events. The genesis for the idea is the decline in viewership of traditional sports among Gen Z and the desire to create experiences that are more tailored to the preferences of today's youth. 

With youngsters watching concerts in Fortnite, attending political rallies in Roblox and broad investment from Meta (aka Facebook) into digital ecosystems, Stadium Live is betting that it can build the platform where Gen Z fans will aggregate around sports.

To-date the startup reports having 500,000 sign-ups with active users spending 35 minutes on the app. Whether or not this is the future of sports for the younger generations is far from certain, but leagues are paying a lot of attention to how future generations plan to experience sports in ways that are new and different form their parents' generation.

(more here)

EXTRA POINT



Talent in Tech: Underdog
Are you still the underdog if your startup is valued at $485 million? I guess we'll find out, as New York-based fantasy sports company Underdog announced a new $35 million in Series B funding this week, reportedly valuing the startup at $485 million. This brings the 2020-founded startup's total funding to $45 million.

The market for legalized sports betting has been growing rapidly, with 2021 seeing a doubling in wagers over the prior year to $52.7 billion. This growth has primarily been driven by the march toward legalization of betting in more and more states, as well as more than $1 billion in marketing spend shelled out by leading sportsbooks like FanDuel and DraftKings.

As we have written about in past issues of the 2-Minute Drill, one of the challenges facing this growing market is that current customer acquisition costs are at unsustainable levels. In more mature betting markets such as Europe and the UK, the cost of acquiring a new user is a fraction of the cost we are seeing in America. Fueled by cheap cash from venture capital and private equity dollars, many of these emerging betting companies are looking to lock in new customers at any cost, hoping that over time they will recoup their expense and eventually generate a profit. Whether or not this strategy will pay off is still a big question mark.

But as sport betting undoubtably becomes a larger and larger market, Underdog is looking to throw its hat in the ring by developing games primarily focused around drafting fantasy football lineups and enabling users to compete and earn rewards. Fantasy games users can participate in include Best Ball, Daily Drafts and Pick'em.

The startup has not publicly disclosed its user numbers or traction, but with another NFL season on the horizon and more states open for betting business, the startup has a fresh set of dry powder to invest in growing the business.

Athletes + Entertainers involved include: NFL stars Jared Goff and Odell Beckham Jr., NBA stars Kevin Durant and Trae Young, and entertainers Nas, Steve Aoki, Future, Gunna, The Chainsmokers, and more.

(more here)
 

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Disclaimer: The content in this newsletter is for informational purposes only and should NOT be taken as legal, business, tax, or investment advice. It also does NOT constitute an offer or solicitation to purchase any investment or a recommendation to buy or sell a security.



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