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Daily Crunch: September 2, 2021

A daily summary of TechCrunch's most significant and impactful news is delivered to inboxes each day at 3 p.m. PDT. You can subscribe to this service here.

TechCrunch Update

Greetings, and welcome to the Daily Crunch for Thursday, September 2, 2021. TechCrunch operations will be scaled back tomorrow due to a company-wide break across Yahoo.

Despite this pause, all TechCrunch systems will remain operational as the team prepares for the next phase in the publication’s evolving corporate history.

This period of reduced activity allows for necessary rejuvenation before navigating the future of TechCrunch under its current ownership. — Alex

TechCrunch's Leading Three Stories

Recent reports highlight significant developments across technology and geopolitics. These include concerns regarding cyber activity, the continued relevance of search engine optimization, and regulatory decisions impacting internet access in Europe.

Cybersecurity Concerns: Targeting Uyghurs

China’s efforts to suppress Uyghur culture and influence the Uyghur population extend beyond its national boundaries. Evidence suggests the Chinese government is actively engaged in hacking Uyghurs, even those traveling abroad.

The FBI has recently reported that the Chinese Communist Party is conducting similar cyber operations within the United States. This indicates a broadening scope of activity targeting this specific community.

The Enduring Importance of SEO

Despite evolving search landscapes, SEO remains a vital digital strategy. A substantial $55 million investment in the startup Botify demonstrates the ongoing value placed on search engine optimization.

While the proportion of search results derived from paid or first-party sources is increasing, organic traffic continues to expand. Consequently, businesses are still heavily invested in capturing a share of this valuable clickstream.

Net Neutrality Prevails in Europe

Europe’s highest court has reaffirmed its commitment to net neutrality by issuing another ruling against “zero rating.” This practice allows internet service providers to exempt specific content from data usage limits.

Zero rating often favors content originating from the provider itself, raising concerns among advocates for an open internet. The EU’s decision signals a firm stance against such practices, ensuring a more level playing field for online content.

This ruling reinforces the principles of net neutrality, guaranteeing equal access to all online content for European users.

Startups & Venture Capital

A comprehensive overview of our Y Combinator coverage will be available tomorrow in Daily Crunch, featuring hundreds of startups. However, we couldn't wait to share a preview. Consider this headline: “Jeeves, a fintech startup, secures $57M and ascends from Y Combinator to a $500M valuation within a single year.” Such swift value creation is remarkable, even in the context of 2021 for an early-stage venture.

Funding Highlights

Further investment is flowing into the neobank sector. Point, a challenger bank, has successfully raised $46.5 million in a Series B funding round. This capital will accelerate the startup’s mission to develop a debit card offering benefits comparable to traditional credit cards.

Point’s services are not provided without cost, but it presents an attractive alternative for individuals seeking to avoid revolving credit accounts and their associated high interest rates.

Insurance and Real Estate Tech

Shepherd has secured $6.2 million in funding to innovate within the construction insurance landscape. TechCrunch reports the startup is focused on providing excess liability insurance to construction firms, integrating technology usage data into its risk assessment processes. This approach represents a compelling innovation.

Procore participated in this funding round, demonstrating confidence in Shepherd’s vision.

HomeLight, a real estate technology company, has raised $100 million. The company aims to facilitate connections between buyers and sellers, while also offering title and escrow services.

Following this latest funding event, HomeLight’s valuation has reached $1.6 billion. The company achieved this substantial funding round after forecasting a tripling of revenues to exceed $300 million in 2021. Speculation regarding a potential IPO is now increasing.

Continued Growth in Edtech

The expansion of the edtech sector continues unabated. This conclusion is supported by news of a $60 million investment in Panorama Education, led by General Atlantic.

Panorama Education has developed a software platform designed for K-12 education. Edtech startups experienced significant growth in 2020 as schools transitioned to remote learning environments. It appears this momentum is still building and has not yet peaked.

Why Initiating a Credit or Debit Card Program Makes Sense

The current wave of innovation within the financial technology sector is actively diminishing the traditional advantages held by established financial institutions over newer companies.

Many startups are now venturing into offering credit and debit cards as a means of competing with traditional retail banks.

The availability of accessible developer APIs simplifies the card issuance process, and pre-built solutions for crucial procedures like Know Your Customer (KYC) compliance are readily obtainable.

Insights from Industry Leaders

To gain a deeper understanding of the reduced obstacles to market entry – and the difficulties associated with developing a distinctive card product – reporter Ryan Lawler spoke with several key figures:

• Michael Spelfogel, the founder of Cardless.
• Anu Muralidharan, the Chief Operating Officer at Expensify.
• Peter Hazlehurst, founder and CEO of Synctera.
• Salman Syed, Senior Vice President and General Manager of North America at Marqeta.

These discussions explored the nuances of building and launching a successful card program in today’s dynamic landscape.

(Extra Crunch is a membership program designed to empower founders and startup teams. Registration can be completed here.)

Big Tech Inc.

The Googlebot receives a robotic upgrade: Alphabet, as detailed by Brian Heater in his Actuator series, has developed an exoskeleton. The design is notably striking.

It’s often overlooked that Alphabet maintains substantial research and development initiatives, despite its current prominence in areas like Android, advertising technologies, and online productivity suites.

Virgin Galactic Update

Virgin Galactic is preparing for its inaugural commercial spaceflight. The company anticipates launching this mission either later this month or in early October, representing positive developments for investors.

However, a recent announcement indicates a postponement. The FAA has temporarily grounded Virgin Galactic, delaying the next scheduled flight. Further details can be found here.

Tesla News

Tesla faces increased scrutiny regarding its Autopilot system. The company has been directed to provide relevant data to the United States’ traffic safety authority.

Furthermore, the highly anticipated Roadster’s release may be delayed until 2023. This raises questions about the timeline for the Cybertruck’s eventual market availability.

Financial Innovation in India

Eight banks in India are collaborating to introduce the “Account Aggregator” system. This initiative aims to empower consumers by allowing them to centralize all their financial information in a single location.

India’s banking sector has a demonstrated history of cooperative efforts to develop consumer-focused products. This includes the widely utilized “interoperable UPI rails” which are crucial for many fintech businesses operating within the country, as reported by TechCrunch.

TechCrunch Insights: Identifying Leading Growth Marketing Professionals

TechCrunch is dedicated to assisting startups in locating specialists who can effectively address their specific requirements.

Currently, a curated list of premier growth marketers is being developed to facilitate this process.

Gathering Recommendations for Startup Growth Experts

Since the launch of our survey, a substantial number of valuable recommendations concerning growth marketing professionals within the startup ecosystem have been submitted.

These insights are proving invaluable in identifying top talent.

• The goal is to create a resource for startups seeking expert guidance.
• Recommendations received are being carefully evaluated.

We anticipate further valuable feedback as more responses are received.

Participation in the survey is encouraged; it can be accessed here.

Contribute to the List of Top Growth Marketers

Your input is crucial in building a comprehensive and reliable directory of growth marketing expertise.

By sharing your recommendations, you directly contribute to the success of emerging companies.

Community Engagement

Danny Crichton and Mary Ann Azevedo will be hosting a discussion with Jonathan Metrick regarding fintech and growth marketing strategies.

This event is scheduled for Tuesday, September 7th, commencing at 3:00 PM PDT, which corresponds to 6:00 PM EDT.

The conversation will take place on the Twitter Spaces platform, offering an accessible forum for insights.

Event Details

• Participants: Danny Crichton, Mary Ann Azevedo, and Jonathan Metrick.
• Topic: Fintech and growth marketing.
• Date: September 7th.
• Time: 3:00 PM PDT / 6:00 PM EDT.
• Platform: Twitter Spaces.

Attendees can expect a focused discussion on current trends and best practices within the fintech sector.

Growth marketing techniques relevant to financial technology will also be explored during the session.

This provides a valuable opportunity to gain knowledge from industry experts.

The event is designed to be interactive, allowing for potential audience participation.

Stay tuned to Twitter Spaces for further updates and to join the conversation.