Tech Company Closures 2021: 11 Startups That Shut Down
Daily Crunch: December 27th Roundup
For a daily digest of TechCrunch’s most significant and impactful stories, delivered directly to your inbox each day at 3 p.m. PST, you can subscribe here.
Greetings once more, and a warm welcome to Daily Crunch for Monday, December 27th.
Interim Leadership
I am currently managing the Daily Crunch publication while Alex is enjoying a vacation. Should you find yourself missing his insightful commentary, rest assured he will return next week.
Year-End News Cycle
As previously noted last week, the flow of news typically slows during the final weeks of December. Consequently, these daily summaries will be somewhat more concise.
We anticipate a return to our regular, comprehensive coverage next week. This is largely due to the commencement of CES. (The event is proceeding as planned, even with several major corporations withdrawing their participation.)
—Greg
TechCrunch Highlights: Top 3 Stories
This compilation presents the three most noteworthy articles recently featured on TechCrunch, offering insights into startup closures, team favorites, and the evolving landscape of digital accessibility.
Startup Closures of 2021
A retrospective look was conducted by the TechCrunch team, cataloging the startups and tech projects that ceased operations or announced their closure in 2021.
Notable names included Houseparty, Dark Sky, and Loon, representing a range of innovative ventures that ultimately concluded.
Fry’s Electronics received a special acknowledgment, despite not being a startup, due to the significant impact its closure had on a generation of tech enthusiasts.
TechCrunch’s Annual “Favorite Things”
The TechCrunch team compiled its yearly list of “favorite things,” encompassing a diverse array of discoveries and recommendations.
This eclectic collection provides a window into the interests and perspectives of the individuals driving the TechCrunch platform.
One standout recommendation was Kirsten’s suggestion of air traffic controller music, demonstrating the unique and varied tastes within the team.
Accessibility: Talk vs. Action
An examination was undertaken to assess whether increased awareness of accessibility is translating into tangible improvements.
While companies are demonstrating a greater willingness to discuss accessibility, the question remains whether these conversations are leading to meaningful change.
Joe Devon, co-founder of Global Accessibility Awareness Day, led an in-depth analysis of relevant data to explore this critical issue.
The investigation seeks to determine if the rhetoric surrounding accessibility is genuinely fostering a more inclusive digital environment.
Startups & Venture Capital Updates
Recent developments in the startup and venture capital landscape include notable events and funding rounds. These span from the passing of a prominent investor to significant investments in emerging companies.
Industry News & Notable Losses
Naren Gupta, a highly influential figure in the venture capital world, has sadly passed away at the age of 73. He was a co-founder of Nexus Venture Partners.
Manish Singh has detailed Gupta’s impactful career, highlighting his numerous achievements. He played a crucial role in fostering the growth of Indian SaaS startups and establishing their presence globally.
Funding Rounds & Startup Growth
Teesas, a Nigerian edtech startup, has secured $1.6 million in a pre-seed funding round. This achievement comes less than two months after the company’s initial launch.
The company provides a subscription-based service for students. It delivers both live and recorded educational content, specifically designed to complement their existing school curriculum.
Neobank Success & Valuation Increase
Jupiter, an Indian neobank, has raised $86 million in a new funding round. It’s important to note this Jupiter is a financial institution, not the planet.
The company’s founder reports that the service has rapidly gained traction, reaching nearly half a million users shortly after its public launch. This latest funding round has resulted in a valuation of $711 million for Jupiter.
This valuation represents more than a doubling of the company’s value since August, demonstrating significant investor confidence and growth potential.
Shifting Dynamics in New Zealand’s Venture Capital Funding
Image Credits: Thitima Thongkham / Getty ImagesDespite its relatively small population of just over five million, New Zealand’s startup environment is demonstrating significant strength and growth.
Investment activity in 2020 reached $158 million across 108 deals, marking the third year in a row with increasing funding. This growth has been fueled by successful exits from companies such as RocketLab, Pushpay, and Seequent.
Consequently, prominent international investors, including Sequoia and Founders Fund, are now paying close attention to the New Zealand market.
James Pinner, currently serving as acting CEO of New Zealand venture fund Elevate, expressed optimism about the future. He anticipates the emergence of more unicorn companies and substantial successes within the next five years.
These achievements, he believes, will generate a beneficial ripple effect, inspiring a new wave of entrepreneurs.
(Access to exclusive insights and resources for founders and startup teams is available through TechCrunch+. Sign up for membership here.)
Big Tech Inc.
Several major corporations are now reducing their physical presence at the upcoming Consumer Electronics Show (CES).
Despite plans to proceed, a growing list of prominent companies will not be participating in person due to the current surge in COVID-19 cases.
CES Participation Changes
- Increased Corporate Withdrawals: A significant number of large companies have opted to forgo in-person attendance at CES.
- Initial Announcement: T-Mobile was the first major firm to announce its withdrawal from the show’s physical events.
- Following Suit: Subsequently, other tech giants such as Google, Lenovo, Intel, GM, Microsoft, Meta, and Amazon have also decided against in-person participation.
TikTok Moderator Lawsuit
The challenges of content moderation on large social media platforms remain substantial, with no definitive solutions yet achieved.
Current automated systems are inadequate for the task, and relying on human moderators presents significant ethical and psychological concerns.
A former TikTok moderator has filed a lawsuit against ByteDance, the platform’s parent company, alleging trauma experienced during their employment.
The lawsuit details the intense workload, requiring moderators to review an overwhelming quantity of content.
According to the complaint, moderators were expected to simultaneously monitor between three and ten videos at any given time, exposing them to disturbing material.
This high-volume exposure is cited as a contributing factor to the psychological distress experienced by the plaintiff.
The case highlights the difficult conditions faced by those tasked with filtering harmful content online.
It underscores the need for improved strategies to protect the well-being of content moderators.
TechCrunch Professionals
Were you able to review last week’s articles concerning growth marketing and software engineering? The previous coverage can be found here if you missed it.TechCrunch is seeking recommendations for accomplished growth marketers with skills in areas like SEO, social media, and content creation.
Growth Marketer Survey
Growth marketers are encouraged to share this survey with their clients. We are interested in gathering feedback regarding positive client experiences.
Client testimonials detailing the benefits of collaboration are highly valued. Your clients’ perspectives will help us identify top professionals in the field.
- SEO expertise is a key area of interest.
- Experience with social media marketing is also important.
- Strong content writing skills are highly desirable.
The survey aims to highlight the value provided by effective growth marketing strategies. Participation from both marketers and their clients is appreciated.
