The Shift from Billboards to Media Ownership

Previously, a common marketing tactic for startups involved utilizing billboards. This became particularly apparent upon arrival in San Francisco, where venture-funded businesses like Eaze, Airbnb, and Brex prominently featured large-scale billboard advertisements. This strategy emerged as a direct reaction to the increasing congestion within online advertising platforms, such as Facebook and Instagram.

A New Approach: Acquiring Media Outlets

Currently, a new trend is developing: startups are opting to purchase media companies rather than relying on traditional advertising. This represents a shift away from crowded marketing channels. There's a growing movement among startups and venture capital firms to either acquire existing media companies or establish their own.

This can be viewed as a novel method of implementing content marketing strategies. Recent developments include Coinbase's announcement of a new media venture focused on cryptocurrency. Simultaneously, Clubhouse is actively seeking freelance writers, while its primary investor, Andreessen Horowitz, intends to launch an opinion section.

Beyond Individual Cases: A Wider Trend

Further evidence of this trend includes reports of The Skimm considering a sale and Hubspot's acquisition of The Hustle. These instances collectively demonstrate a broader ambition within the tech industry to expand into media ownership.

The Motivation Behind the Shift

The implications of this venture-backed media surge were discussed on Equity, our podcast. The core idea is not necessarily a desire to directly compete with traditional journalism. Instead, it’s a strategy to stand out in an increasingly saturated environment and reframe advertising as media initiatives.

Looking Ahead: IPOs, Revenue Models, and Tech Stacks

While the intersection of journalism, technology, and media is a complex topic, this concludes our focus on it for today. The remainder of this newsletter will cover new IPOs, startups offering upfront revenue to other businesses, and practical guidance on the build-versus-buy decision when constructing a tech stack.

You can continue the conversation with me on our podcast, @Equitypod, and on Twitter at @nmasc_.

Oatly's Public Debut and Market Activity

This week marked Oatly’s initial public offering (IPO), and the response was met with a noticeable lack of witty commentary, despite the ample opportunity for puns. However, setting that minor observation aside, the public markets have experienced a period of significant activity.

Key Developments: Marqeta, a company specializing in card issuance and payment technologies, has released a compelling S-1 filing. This filing reveals a dynamic relationship with Square, reminiscent of the Peloton-Affirm partnership.

Alex thoroughly analyzed the financial data and provided insights into the implications of Marqeta’s filing in the latest edition of The Exchange.

Further Market Updates:

• Is Squarespace positioned to avoid the pitfalls often associated with direct listings?
• Monday.com’s IPO filing showcases rapid expansion alongside continued unprofitability for this no-code startup.
• WalkMe is preparing to enter the public market; a detailed examination of its financials is warranted.

To Develop In-House or Acquire?

The telemedicine industry must now strategize for a future beyond the pandemic, a transition that presents distinct initial investments, potential challenges, and, as Marcela observes, promising avenues for growth.

Funding within the sector experienced a significant surge in 2020, reaching approximately $3.1 billion – a threefold increase compared to the figures from 2019, as detailed in her recent report.

Startups face the task of effectively deploying capital and maximizing their impact.

Key Takeaways: A comprehensive market analysis of telemedicine is now available, covering its present status, existing conflicts, cost considerations, and the often-overlooked dynamics of patient out-of-pocket expenses.

Further insights include:

• An examination of the strategic choice for startups: developing telehealth infrastructure internally versus acquiring existing solutions.
• The recent acquisition of Modern Fertility by Ro for a reported $225 million.

Pipeline Financing Gains Momentum

Significant attention is currently focused on Pipe, a company that recently secured $250 million in funding, resulting in a $2 billion valuation. As highlighted by Mary Ann, Pipe positions itself as a revenue-based Nasdaq, facilitating SaaS businesses in accessing immediate funds.

This is achieved by connecting them with investors who offer a discounted rate in exchange for the future annual value of their contracts. Pipe is essentially creating a marketplace for revenue-based financing.

Key takeaways: This substantial investment wasn't the sole instance of capital flowing into companies offering upfront revenue solutions to startups this week. Uncapped, operating as the European counterpart to Pipe, also announced an $80 million funding round.

To illustrate the trend, nearly $330 million was invested in companies supporting the provision of upfront revenue to other startups within a 24-hour period, as reported by TechCrunch.

Further financial developments include:

• Bain Capital Ventures successfully raised $1.3 billion, earmarked for investment in both emerging startups and nascent venture capital firms.
• A significant merger has occurred between Gojek and Tokopedia, resulting in the formation of the GoTo Group.

TechCrunch Startup Battlefield 2021

TechCrunch is currently seeking 20 promising, early-stage companies to participate in the Startup Battlefield competition at TC Disrupt 2021.

Selected startups will benefit from a dedicated feature article published on TechCrunch.com. They will also receive comprehensive pitch coaching delivered by the TechCrunch team.

Key Benefits for Participating Startups

• A featured article on TechCrunch.com will increase visibility.
• Intensive pitch training will refine presentation skills.
• There is a chance to win $100,000 in non-equity prize funds.
• The event provides exposure to a vast network of international media and investors.

The opportunity to gain recognition from a global audience and secure potential funding makes this a valuable experience.

Applications must be submitted by May 27th. Don't miss this chance to showcase your innovation!

Weekly Highlights

Featured on TechCrunch

• The cryptocurrency and blockchain sectors need to acknowledge existing challenges and take a leadership role in promoting sustainability.
• A question posed: What possesses four wheels yet consistently results in financial loss?
• Twitter has initiated the process of accepting applications for account verification.
• A comprehensive overview of all announcements made by Google during its recent I/O event.

Highlighted on Extra Crunch

• An analysis of a significant $200 million investment made by an edtech company focused on continuous learning opportunities.
• For organizations leveraging machine learning, accurately labeled data represents a crucial competitive advantage.
• Competition is intensifying in the development of voice recognition technology for automotive applications.
• Expensify’s journey to $100 million in revenue involved prioritizing adaptable employees over rigidly defined roles.

We appreciate your readership. Consider engaging in an activity that doesn't rely on technology this week.

However, please share this newsletter with at least two colleagues beforehand.

Sincerely,

N