Algolia Raises $150M Series D, Reaching $2.25B Valuation - Daily Crunch

Daily Crunch: July 28, 2021 – Key Tech Updates

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Greetings, and welcome to the Daily Crunch for July 28, 2021. Today has been particularly eventful. Duolingo initiated public trading.

Algolia successfully secured a substantial funding round. Cryptocurrency values experienced an increase. Furthermore, numerous earnings reports from leading technology companies are currently being released.

Notable Events of the Day

If you maintain an interest in technology news, this compilation is designed for you. Let’s proceed with the highlights!

A reminder that discounted tickets for Disrupt will expire in just two days. Secure your attendance now to join the leading innovators and enthusiasts.

Key Highlights

• Duolingo’s IPO: The language learning platform commenced trading on the stock market.
• Algolia’s Funding: The search and discovery platform announced a significant investment round.
• Crypto Market Surge: Digital currency prices demonstrated upward momentum.
• Tech Earnings Reports: Major technology corporations are publishing their financial performance data.

These developments represent a dynamic period within the technology sector. Continued monitoring of these trends is recommended.

Recent Developments in the Tech Industry

Several key events have recently shaped the landscape of the technology sector. These include policy changes at Google, significant funding for Algolia, and the public debut of Duolingo.

Google's Vaccination Policy for Employees

Google has announced a mandatory vaccination policy for employees who intend to return to the workplace. This decision aims to establish safety protocols as more tech professionals transition back to office environments following a period of remote work.

The requirement of vaccinations is considered a logical step towards ensuring a secure work environment. Vaccines have been proven to be safe and effective in protecting individuals and those around them. It is anticipated that other companies will adopt similar measures.

Algolia Secures $150 Million in Funding

Algolia, a leading search-as-a-service provider, has successfully raised $150 million in a new funding round. This investment brings the company's valuation to $2.25 billion.

While specific revenue figures were not disclosed, Algolia reported an impressive 180% growth in its annual recurring revenue (ARR) over the past year. This latest funding round follows a $110 million raise in 2019, which valued the company at over $500 million.

Duolingo's Initial Public Offering

Duolingo, the widely-used language learning platform, launched its initial public offering (IPO) at a price of $102 per share. The company's stock has since increased to approximately $132 per share, marking a successful first day of trading.

Despite recent challenges faced by edtech companies in China, the U.S. market appears to be favorable for educational startups. This positive trend bodes well for the future of the edtech industry as a whole.

The successful IPO of Duolingo demonstrates continued investor confidence in the potential of consumer-focused edtech services.

Startups/VC

Squire demonstrates the scalability potential of vertical SaaS solutions. The company, which delivers specialized software to barbershops, recently secured a $60 million funding round. This investment reflects the significant market opportunity available to Squire, given the large number of businesses within its target industry.

Currently, Squire’s services are utilized by more than 2,000 shops spanning three continents, according to TecCrunch reports.

Reducing Plastic Waste

Algramo is tackling the issue of single-use plastic consumption. Recognizing the widespread reliance on disposable plastics, the startup collaborates with brands to establish refill stations for various products.

A recent $8.5 million capital injection will further support Algramo’s mission to promote sustainable practices.

Sales Technology Landscape

QuotaPath is emerging as a notable player in the sales technology sector, alongside companies like Gong.io. The startup has successfully raised $21.3 million in a new funding round.

QuotaPath offers a commission-tracking solution specifically designed for sales and revenue teams, addressing a clear need within the industry. The availability of tooling budgets for sales teams, coupled with the desire of salespeople to receive timely compensation, creates a strong market for such solutions.

Battery Recycling Innovation

Redwood Materials is making significant strides in battery recycling, securing $700 million in funding. This investment values the company at $3.7 billion.

Redwood Materials focuses on recycling both scrap generated during battery production and used consumer batteries. The company extracts valuable materials from these sources and reintegrates them into the manufacturing process. The viability of this approach hinges on favorable economic conditions.

Advancements in Rocket Technology

Beyond the high-profile spaceflights of billionaires, numerous companies are actively developing rocket-launch technology. Isar Aerospace is one such company, recently completing a $75 million funding round.

This capital represents an extension of the $91 million raised by Isar Aerospace in December. The company’s rockets are designed to transport payloads of up to 1,000 kilograms to low-Earth orbit.

Further Exploration

For those interested in learning more, the founder of mmhmm, a startup that previously secured $100 million in funding, was a guest on the Equity podcast. The conversation provides valuable insights into the company and its vision.

The "CEO for a Day" Initiative at Vincit USA

The television show “Undercover Boss” features executives working incognito with their employees, with the stated goal of gaining insights from their experiences.

Vincit USA, a software firm, takes a different approach with its “CEO of the Day” program.

This program allows employees to temporarily assume the role of chief executive for a full 24-hour period, complete with unrestricted budgetary authority.

A single stipulation applies to this unique opportunity.

According to Ville Houttu, founder and CEO of Vincit, the designated “CEO” is tasked with implementing a decision that will demonstrably enhance the work environment for all Vincit employees.

Since its implementation, Vincit USA has been recognized with numerous accolades for its positive workplace culture and has experienced a decrease in employee attrition rates.

Houttu affirms that, despite its unconventional nature, the program has yielded substantial benefits.

The return on investment has been significant, exceeding expectations.

(Extra Crunch is a membership service designed to support founders and startup teams. Registration is available here.)

Big Tech Inc.

Today’s technology news summary is divided into two sections. First, we present a compilation of individual updates. Following this, a review of key insights from recent earnings reports will be provided.

• Walmart Expands E-commerce Capabilities: Walmart, a significant competitor to Amazon in the e-commerce sector, is collaborating with Adobe. This partnership aims to “integrate access to Walmart’s Marketplace, alongside its diverse online and in-store fulfillment and pickup solutions, into the Adobe Commerce Platform.” Walmart, alongside platforms like Shopify and BigCommerce, is actively challenging Amazon’s market dominance.
• Snapchat Enhances Map Functionality with Personal Spaces: Snap’s Snapchat application has demonstrated consistent growth, contributing substantially to its parent company’s revenue. The company has announced the introduction of “My Spaces” to its mapping feature. According to TechCrunch, this addition will allow users to save preferred locations, share them with contacts, and receive recommendations for new places to explore.
• Twitter Explores E-commerce Integration: The launch of a “Shop Module” pilot program by Twitter is a key development. This module will enable users to sell products directly from their profiles. Despite also venturing into subscriptions and live audio, and continuing to delay DM search functionality, Twitter is now expanding into the realm of online retail, resembling a combination of Etsy and Amazon.

Let's now turn our attention to earnings reports.

Shopify exceeded earnings expectations this morning, mirroring similar successes from Microsoft and Apple yesterday. Interestingly, all three companies experienced declines in their share prices today. This reaction suggests that investors had already factored anticipated earnings gains into their valuations. While the companies are largely holding onto their existing value, this could indicate a potential peak in technology stock multiples.

However, this may not be the case. Alphabet also surpassed estimates and, at the time of writing, has seen a slight increase in its stock value. Furthermore, Spotify’s advertising revenue experienced substantial growth this quarter, a noteworthy development for those following the financial aspects of the music and podcasting industries.

TechCrunch Seeks Top Growth Marketing Professionals

TechCrunch is currently soliciting recommendations for accomplished growth marketers. These professionals should demonstrate proficiency in areas like SEO, social media marketing, and content creation.

Growth marketers are encouraged to share a survey with their clients. We aim to gather feedback regarding positive client experiences and the value provided.

Survey Purpose and Coverage

The purpose of this survey is to inform TechCrunch’s reporting on the growth marketing landscape.

Those interested in understanding how these surveys influence TechCrunch’s editorial direction can review a summary of a recent Twitter Spaces discussion.

Recent Event Recap

A recap is available from the “The MKT1 interview: Growth marketing in 2021, hiring versus outsourcing and more” event hosted with MKT1.

This event explored key trends in growth marketing, including the considerations of in-house hiring versus outsourcing strategies.

Areas of Expertise Sought

• SEO (Search Engine Optimization)
• Social Media Marketing
• Content Writing
• Growth Strategy

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Currently, early-bird passes are available at a price point under $100. However, this discounted rate is temporary.

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