Meet Coin (YC W13), a startup creating a universal credit card

Summary: Coin isn’t trying to replace the physical wallet with a digital one. Instead it’s trying to reduce all of the credit, debit, gift and loyalty cards that clutter up our wallets to a single piece of plastic.

As the contactless payments technologies from Google Wallet to Isis flounder, critics point to what now seems rather obvious: Silicon Valley is trying to fix a system that simply isn’t broken. Swiping a card through a point-of-sale magnetic stripe reader is easy and it works in millions of locations. In fact, the mobile payments companies that have been most successful, such as Square and PayPal, aren’t necessarily trying to change that basic transaction – they’ve just made it possible to use your plastic in more places.

Kanishk Parashar learned that lesson the hard way. The PayPal veteran developed a smartphone wallet app in 2010 called Smart Market that went nowhere. But now he’s founded a new company called Coin that isn’t messing around with the fundamentals of the basic credit card swipe. Instead it’s building a better credit card.

LendUp (YC W12) raises $14M Series A from Google Ventures, Data Collective

A startup called Flurish Inc., better known as LendUp, has raised $14 million in Series A financing to offer an online alternative to traditional payday loans, according to co-founders Sasha Orloff and Jacob Rosenberg.

Google Ventures led the investment in LendUp, joined by Data Collective and QED Investors. The deal marks one of several in the lending segment of financial services for Google Ventures and Google Inc., which backed OnDeck Capital Inc. and Lending Club Inc., respectively.

LendUp, based in San Francisco with 14 employees, gives short-term, small dollar loans to borrowers online–usually the kinds of borrowers banks won’t help. Instead of relying on FICO scores, LendUp uses publicly available data online–from social networks, for example–to assess which applicants may be a good risk, even if they don’t have any credit history in the U.S. Loan decisions are usually made within minutes, the company says.

Read the full article at WSJ

Weebly (YC W07) launches e-commerce capabilities, lets you sell unlimited products for $29/mo

It’s been said that under half the businesses in the United States don’t have a presence on the web beyond a quick listing by Google. Part of the reason is that website hosting can be expensive and complicated. Website builder Weebly, which says it hosts blogs and websites for 20 million people, wants to tackle the problem by appealing to part-time entrepreneurs who’d like an online store, but can’t afford the real estate. It’s spent the last two years building an e-commerce platform that makes it simple enough to create a free e-commerce site entirely on a smartphone, and in a few minutes.

“One of the things we’ve learned about our users in the last couple of  years is that 60% consider themselves entrepreneurs,” says CEO Dave Rusenko. In response he’s now offering them an eCommerce plan which includes a basic, free version for a site with features like product search, mobile checkout and the ability to sell up to five products. Selling unlimited products will cost $29 a month.

Read the full article on Forbes

Lob (YC S13) raises $2.4M for easy printing and shipping services API

This summer, the Y Combinator-backed startup Lob launched a new developer API which lets companies easily integrate printing and shipping services into their applications. Today, the company is announcing $2.4 million in seed funding from various YC partners and angel investors... With Lob, whose early adopters include CrowdTilt, ZenPayroll, LendUp, LocalOn, and others, developers can automate or print a variety of products on demand, including postcards, photos, flyers, posters, bills, checks, invoices, and more.

The company says it now has over 1,000 paying customers, and just hit $40,000 in revenue at the end of last month. It has also printed a million dollars worth of checks. On the horizon, there’s the potential for Lob to grow even larger, with now two Fortune 500 companies testing the service on a smaller scale. If those trials come to fruition, they could be multi-million dollar deals, the founders tell us.

Read the full article on TechCrunch

Lawdingo (YC W13) raises $690K so you can talk to a lawyer instantly

Y Combinator-incubated legal startup Lawdingo is announcing that it has raised another $690,000 in funding.

The company’s goal is to make it more convenient and affordable for users to connect with a lawyer (in contrast to a service like LegalZoom, which offers legal forms rather than actual consultation with an attorney). Users can search the site and browse profiles based on a lawyer’s location and expertise, then schedule an appointment or talk to them right then.

Read the full article at TechCrunch

Startup School notes are now for sale as a book, all profits go to Watsi

Startup Notes is now selling its doodles from Startup School 2013 in book form, and they're donating 100% of the profits to Watsi. A note from Startup Notes creator Gregory Koberger: 

"Like everyone else at Startup School, I was mesmerized by Chase Adam’s talk about Watsi, the nonprofit that funds medical care for people around the world. His talk left me wanting to help out somehow.

When I drew my Startup Notes, I wasn't expecting it to get as popular as it did. I recieved hundreds of emails about the project. Many asked me to sell a physical copy, which I had no intention of doing.

Then I had an idea. Bill Morein from FiftyThree, the company behind the iPad app Paper, had reached out to me about Startup Notes. It just so happened that they had just released a new product called Book that lets you print a custom Moleskine book directly from Paper. I asked if FiftyThree would be interested in printing and selling Startup Notes as a physical book, and donating part of it to Watsi. FiftyThree liked the idea, and offered to donate their entire profit to Watsi. So, neither FiftyThree nor I will make any money off this — after printing costs, everything goes to funding medical care via Watsi.

Kicksend (YC S11) lets you print photos to your local Walmart, now making $150K/mo in rev, growing 30% month over month

Mobile photography startup Kicksend has spent the last year inking partnerships with brick-and-mortar retail chains like Walgreens, Target and CVS so it can bring its promise of dead-simple photo sharing and printing to the masses.

Now it looks like Kicksend has another notable feather in its cap — the Mountain View-based company just announced on its blog that it has locked down a deal with Walmart so users can remotely send print jobs to some 3,800 additional stores across the U.S.

It’s certainly a sweet deal for the Kicksend team, especially as they’re finally starting to hit their stride in terms of monthly generated revenue. CEO Pradeep Elankumaran noted that the startup was seeing revenue in the “very low tens of thousands” back in March 2013, but the past six months have seen those figures surge pretty dramatically.

“We’re generating over $150K/month in revenue,” Elankumaran added. “And we’ve been growing 30 percent month-over-month for the past 6 months.” While that’s at least partially a side-effect from Kicksend’s expansion into prominent retail chains, that lift in revenue is also being pegged on strong mobile performance — some 45 percent of Kicksend app users are being converted into paying customers.

Read the full article in TechCrunch

Founder Stories: Panorama's (YC S13) advice for first time founders and YC applicants

Company: Panorama (YC S13) is using data analysis and technology to solve the biggest problems in K-12 education.

Founders: Aaron Feuer, Xan Tanner and David Carel

Origin Story: “Maybe the answer isn’t just fighting for something, maybe the answer is building it.”

As a high school senior in Los Angeles, Aaron Feuer was the president of the Association of Student Councils. His goal was to give students a voice, and to engage them in the process of improving the public school system. As part of this mission, Aaron helped pass a bill bringing student surveys to the state of California.

You’d think getting a bill passed in California as a high school student would be cause for celebration, but nothing happened.  The bill had little impact.

Toward the end of his junior year at Yale, Aaron looked back at his experience with legislation and decided, “Maybe the answer isn’t just fighting for something, maybe the answer is building it.”

Aaron and his cofounders Xan Tanner and David Carel decided to be the team that tackled the biggest problems in education not just through advocacy, but also by building tools schools could use. Though Panorama started as a simple student survey tool, they’ve grown into a large-scale survey and analysis program that currently runs in 4,000 schools across 26 states.

YC: Tell us how you decided to apply to Y Combinator.

Aaron: In March of our senior year of college, we were considering applying to YC and met with Michael Seibel (cofounder/CEO of Socialcam and Yale alum). We thought we knew the education market better than YC, which had only funded a few education companies. But after talking to Michael, we realized we weren’t that special. Our biggest challenges were not specific to education.

Michael told us that if he started a company again right now, he’d put the company through YC. That’s the best recommendation you could possibly imagine.

We thought our company could go in one of two directions. We could be a small-scale consultancy, or we could be a world-changing endeavor. We were so excited when we met with the YC partners for our interview because we felt like they understood our vision and were crazy enough to appreciate it. The idea of improving education through technology really resonated with them. We had the product, we had customers, we were in the black, and we were fairly far along. We needed fantastic mentors to help us build Panorama.

YC: What’s been the most surprising thing about YC?

Aaron: How much everyone really cared about us. You have a lot of mentors and friends and supporters who are all helpful, but the YC partners had this astronomical degree of kindness toward us. I could text Geoff Ralston at 11pm and he'd take the call—I really did that once. You could email PG at weird hours, Michael Seibel would always make time for us, I could go on and on—the whole YC crew was there for us. It felt like they were literally part of our team. That was both practically helpful and emotionally valuable.

YC: What would you say was the most useful piece of advice you heard at a Tuesday dinner?

Aaron: The most useful piece of advice came from one of the speakers who recommended a simple test for deciding whether to hire someone:

1) Would you want to hang out with this person?

2) Would you be happy reporting to this person in an alternate universe?

YC: Tell us about a time someone in the YC network helped you.  

Aaron: Clever was the most recent education company that went through Y Combinator before us. They're doing different work, but have the same mission-driven approach. Tyler Bosmeny (cofounder, Clever) took us under his wing. He talked to us when we were considering whether to apply to YC. He gave us his application and helped us prepare for our interview. Throughout YC we asked Tyler questions about how to handle things and he’d respond quickly and thoughtfully. He was always looking out for us.

YC: What’s the hardest part about doing a startup so far?

Aaron: Figuring out what's most important. One of the hardest things about being a first-time founder is that you have no idea what will be valuable and what will be a waste of time. Should you go to this mixer? Should you do this interview? You know you can’t do everything, but you also worry about missing a big break.

YC: How do you figure out what’s important?

Aaron: We mercilessly prioritize. We meet as a team every week and come up with a list of the 3-5 biggest things each of us needs to work on. If something isn’t on that list, and it’s not an urgent need for our clients or our team, we deprioritize it.

YC: What do you wish you'd known when you first started?

Aaron: People are the piece that matters most. Recruiting is what should occupy 1/3 to 1/2 of your time as a founder. All the people we've talked to have emphasized the importance of hiring your most talented friends. Geoff Ralston was telling us that when they first built Yahoo, friends and friends of friends were the first 10 to 20 hires.

YC: You moved from the East Coast to do YC for 3 months, and now you’re back in Boston. Can you give any advice to people who might be wondering what effect this might have on their startup/personal lives?

Aaron: We chose to move back to Boston because most of our clients were based within driving/Amtrak distance, and our network was strongest in the northeast. We love that Boston has a strong tech community and a strong education community, and Boston is a great city to live in.

When we were accepted into YC, we were apprehensive about moving to the Bay Area. We were eager to start building out our team, and knew we couldn't do that in Boston while doing YC, so we almost turned them down. Looking back, we definitely made the right decision to go to the Bay Area. Granted, we did end up starting things like recruiting and finding office space a few months later than we otherwise would have. But we've been so much more effective because of what we learned during YC that I think the investment of three months has already proven net positive.

YC: Any advice on choosing where to base your company?

Be thoughtful about how you make your decision. Be honest with yourself (and your investors). Are you moving for personal reasons, and/or is it good for your startup? Both are legitimate; we moved for a combination of both. Just remember that whenever things get tough, especially with recruiting, there might be an unconstructive temptation to blame your location. You want to preempt those feelings with a strong decision making process.

If possible, wait until after YC to pick your destination. (Actually, it's good practice to wait until after YC for every major decision you can.) Again, the outcome might be the same, but process-wise you'll feel better if you pick after getting a taste of the Bay Area.

Practically speaking, YC gives you two valuable resources that are only available in the Bay Area: people whose networks might be helpful for recruiting talent, and people who can help you answer your most pressing business questions. The hardest part of moving was losing that support. We've made a conscious effort to build up a similar network in Boston, and I also fly to California regularly to meet with advisors.

YC: What advice would you give to founders applying to the next batch?

1) Focus on metrics. Show what numbers you will use to quantify success, or what numbers you already have to show you're on the right track.

2) Your mission when applying to YC is to show why your vision is going to change the world. What matters isn’t necessarily immediate revenue or the number of users you have (though those are great!), what matters is why your idea is significant. It’s important to make the case that you can build a thriving company, but you should also go a step further and show why your vision matters.

Learn more about Panorama