PreIPO INTELLI™ Weekly Insights | Series 36
Friday, June 9, 2023 | Volume 1 Series 36 | Fastest growing Startups to watch for, News on the House passing new accredited investor bill, and Binance's fight against SEC
📅 Greetings to all! We trust that you are enjoying a wonderful Friday! As we approach the end of the week, we are thrilled to present the most recent release of the INTELLI™ Newsletter. This week we are talking about the rapidly growing startups catching attention, house lawmakers passing new bills expanding on accredited investor definition, and Binance's legal confrontation with the SEC.
👁️ Top Growing Startups to Keep Your Eye On 👁️
Exploding Topics gave their own list of Top 25 Fastest Growing Startups to keep an eye on, which we’ve summarized 10 of them here for you:
Linktree - Linktree was specifically developed to assist influencers and content creators in efficiently sharing their content across various platforms using a convenient one-click link. Rather than having subscribers navigate through multiple platforms to find the creator's page, a Linktree link provides a streamlined display that showcases all of the creator's pages in one easily accessible location.
Fandom - Fandom is a haven for enthusiasts, offering the ultimate online destination for gaming, fantasy, and entertainment culture. Serving as the largest wiki of its kind, Fandom brings together a staggering 350 million passionate fans across 250,000 communities, spanning from beloved franchises like Halo to the epic world of Game of Thrones. The site thrives on the regular engagement of these dedicated followers, who actively participate on a monthly basis.
Clockify - Tracking time is a dreaded task for project managers worldwide. However, Clockify, a free time tracking tool, has emerged as a game-changer in this domain. Renowned companies such as Disney, Sony, Amazon, and others rely on Clockify to streamline their time management processes. With an impressive track record, Clockify attracts over 100,000 new users every month, indicating its widespread adoption and popularity among professionals.
Stackblitz - Simplicity is paramount for computer programmers, and StackBlitz delivers a comprehensive collection of essential tools in one convenient platform. This all-in-one solution provides easy access to critical resources such as source code editors, automation capabilities, and debugging tools, all within a cloud environment reminiscent of Google Suite. Notably, StackBlitz has already gained traction among industry leaders, including Google and other prominent enterprise developers worldwide.
Preply - An increasingly popular platform for one-to-one language tutoring. Adopting a marketplace model similar to Upwork, students have the freedom to choose tutors from a diverse pool of instructors spanning over 200 countries, catering to a wide range of language learning needs, from Chinese to English. With a remarkable 32,000 tutors registered on the platform, Preply boasts an extensive network of educators. Its user base is equally impressive, with over 100,000 students engaging in language learning on a monthly basis.
Zerotier - A robust platform designed for the deployment and management of secure peer-to-peer networks. These virtual networks are fortified with encryption, ensuring the utmost protection, with exclusive access to the encryption keys limited to the owner. This additional security layer bolsters the network's resilience. The startup proudly reports that their platform currently accommodates an impressive number of over 1.2 million networks, effectively handling more than 3 million interconnected devices.
Shiprocket - Shiprocket is a comprehensive e-commerce logistics platform headquartered in India, catering to businesses seeking streamlined shipping and delivery processes. With a diverse range of shipping solutions, including both domestic and international options, integration with multiple courier services, and advanced tracking and analytics tools, Shiprocket empowers businesses to enhance their logistical operations.
Cradlewise - Cradlewise specializes in the sale of intelligent bassinets equipped with integrated baby monitors. These innovative bassinets monitor the depth of a baby's sleep and employ automated soothing techniques as soon as signs of waking up are detected. In recognition of their groundbreaking product, Cradlewise was honored with an Innovations Award at the prestigious CES 2022 event, generating significant interest and attention for the emerging company.
Tailwind - Pinterest and Instagram are flooded with content creators, making it increasingly challenging to stand out from the crowd. However, Tailwind's visual creation platform has gained popularity among over 1,000,000 brands and influencers worldwide because it simplifies the process of creating unique content. By automating tasks such as hashtagging, color schemes, and scheduling, Tailwind allows brands to focus on the essence of their posts instead of getting bogged down in tedious details.
Brightwheel - Operating a daycare or preschool is an immensely challenging endeavor. From handling attendance and coordinating learning plans to reassuring anxious parents, the staff at these centers have a lot on their plate. Recognizing this need, Brightwheel seized the opportunity and created their comprehensive SaaS solution to effectively manage all aspects of running a child care facility.
To read more about the stats and see the rest of the Top 25 click here.
House Lawmakers Pass Two Bills to Broaden Accredited Investor Definition
Two bills aiming to broaden the definition of accredited investors were passed unanimously by lawmakers in the House of Representatives. The House approved the Accredited Investor Definition Review Act, which grants the Securities and Exchange Commission (SEC) the discretion to determine the certifications, designations, or credentials required for individuals to be considered accredited investors. Additionally, the act mandates a periodic review of the accredited investor definition every five years.
Another bill passed by the House is The Fair Investment Opportunities for Professional Experts Act, introduced by Representative Bill Huizenga (R-Mich.). This bill allows individuals with specific licenses, educational backgrounds, or professional expertise to qualify as accredited investors. Representative Huizenga emphasized the aim of his legislation to create a level playing field, enabling investors to support local small business startups within their communities, both in southwest Michigan and across the country.
Currently, the SEC defines an accredited investor as someone with a net worth exceeding $1 million or an annual income surpassing $200,000 ($300,000 jointly with a spouse). Financial professionals with certain licenses are also considered accredited, irrespective of their income or net worth. Additionally, the House recently passed the Equal Opportunity for All Investors Act of 2023, directing the SEC and FINRA to develop and administer a test that would allow individuals who do not meet other requirements to be designated as accredited investors.
While the SEC is expected to introduce a new rule later this year that could potentially reduce the number of individuals meeting the accredited investor definition, the passage of these three bills demonstrates bipartisan support for expanding access to private investment opportunities for a broader spectrum of Americans.
Binance.US Faces Restrictions on USD Transactions Amid SEC Claims
Binance.US, a cryptocurrency exchange, will no longer allow its customers to use U.S. dollars to purchase crypto on the platform starting from June 13. The exchange stated that both payment and banking partners have indicated their intention to halt USD fiat channels. Binance announced this change on Twitter, attributing it to the "unjustified civil claims" made by the Securities and Exchange Commission (SEC) against their business. In response, the exchange has disabled the ability for customers to buy and deposit U.S. dollars preemptively.
The SEC's scrutiny is primarily focused on Binance's banking transactions. The regulatory body has filed a civil complaint against the exchange and its founder, Changpeng Zhao, alleging violations of U.S. securities laws. The SEC's emergency motion for a temporary restraining order, which sought to freeze U.S. dollars held by the exchange, is linked to Zhao's influence and ownership of Binance's U.S. and international entities. The SEC claims that these offshore holding companies have transferred billions of dollars in assets between themselves.
While customers will not lose their funds, those who have not withdrawn their money by the shutdown date could potentially convert it into stablecoins like tether and withdraw it to convert back to dollars elsewhere. However, the decision by Binance's banking partners to pause USD fiat channels indicates concerns about the exchange's risk profile and the significance of the SEC case's revelations.
Binance has disclosed banking partnerships with institutions such as Axos Bank, Cross River Bank, Silvergate Bank (which failed), Signature Bank, and Silicon Valley Bank. According to documents provided to the SEC, these partners have processed billions of dollars in transactions for the U.S. exchange. Some banking partners had already ceased serving Binance, and it remains unclear which partners the exchange has retained.
As always, stay tuned for more updates and insights from the team at INTELLI™.