AI Acquisitions & Exits: A Hot Summer for Tech - Daily Crunch

Daily Crunch: June 9, 2021

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

TC Sessions: Mobility and Upcoming Events

Greetings, and welcome to today’s Daily Crunch for June 9, 2021. Today featured TC Sessions: Mobility, a dynamic event that we trust attendees found engaging and informative.

Planning is underway for TechCrunch Disrupt. We have begun revealing some of the speakers who will be participating, including Arun Mathew from Accel.

Looking Ahead to Disrupt

Be sure to note the date, as this year’s Disrupt event promises to be exceptional.

— Alex

TechCrunch's Leading Three Stories

President Biden has effectively dismantled the restrictions imposed by his predecessor on Chinese applications. This follows a period of uncertainty initiated when the previous administration insisted on TikTok being sold to a U.S. entity, with the government seeking a financial stake.

According to TechCrunch, President Biden has now signed an executive order that rescinds the previous actions targeting TikTok and WeChat. However, the situation remains dynamic.

A further executive order was also issued, directing the Commerce Department to conduct thorough reviews of applications linked to nations considered "foreign adversaries."

Significant Investment in Battery Technology

Northvolt has secured $2.75 billion in funding to expand its battery production capabilities within Europe. The company aims to achieve an annual capacity of 150 GWh by the year 2030.

Although 2030 appears distant, it represents less than a decade from now. This funding round highlights the growing desire among various regions to establish independent production of essential technologies.

These technologies include batteries, chips, and AI, as a strategy to mitigate geopolitical vulnerabilities.

Strong Investor Interest in AI Startups

The initial wave of startups broadly labeling themselves as "AI companies" has subsided. This has transitioned into a period of intense competition among venture capitalists to invest in startups genuinely utilizing artificial intelligence.

Recent analysis by TechCrunch reveals a highly active and competitive fundraising landscape for companies focused on AI development and implementation.

The demand for funding in the AI sector remains exceptionally strong, indicating a sustained belief in the transformative potential of this technology.

Startups and Venture Capital Funding

Recent investment activity highlights ongoing interest in diverse startup sectors. Venture capitalists continue to deploy capital, even amidst fluctuating market conditions.

Insurtech Developments

Branch, a company specializing in bundled home and auto insurance, has secured $50 million in new funding. This round was spearheaded by Anthemis Group. The company’s core strategy centers around offering a complete bundle from the outset, eliminating the need for subsequent cross-selling efforts.

Despite challenges faced by some publicly traded neo-insurance companies, investor confidence in the insurtech space remains strong. VCs are evidently willing to invest in innovative insurance models.

Supply Chain Solutions

ShelfLife is addressing a critical need for brands seeking to source raw materials efficiently. Founded by Lillian Cartwright and colleagues from Harvard Business School, the platform provides a directory and marketplace connecting brands with suppliers.

ShelfLife streamlines the process of obtaining quotes for specific raw material needs. This is particularly valuable for companies aiming to develop and market their own products, like a hard seltzer alternative.

NFT and Blockchain Investments

Mythical Games has announced a $75 million funding round, demonstrating continued VC interest in the blockchain space. This investment occurs despite a recent slowdown in the market for non-fungible tokens (NFTs).

Regardless of individual perspectives on NFTs, venture capitalists are exhibiting a bullish outlook. They are prepared to invest to avoid potentially missing out on emerging trends.

Fintech and Invoice Financing

Now, a fintech company founded by Stacey Abrams, has raised $9.5 million. Now facilitates revenue acceleration for businesses by purchasing corporate invoices at a fee.

The model is predicated on accurate assessment of nonpayment risk. If managed effectively, it provides a beneficial service to companies seeking immediate access to funds.

The Rise of Headless CMS

Contentstack, a provider of headless CMS services, has received a $57.5 million investment. This funding round was led by Insight Partners.

A headless CMS separates the content repository from the presentation layer. This architecture is gaining traction in a world of diverse end-user devices, including smartwatches, tablets, desktops, and VR headsets.

Angel Investing and Emerging Markets

Superhuman CEO Rahul Vohra and Eventjoy founder Todd Goldberg have launched a new angel fund. Appropriately named Todd and Rahul’s Angel Fund, it boasts a $24 million budget.

This new fund formalizes their investing partnership. The name evokes a sense of adventure and exploration in the startup landscape.

Furthermore, a new startup focused on Polycystic Ovary Syndrome (PCOS) has entered the market. This development follows the Equity Podcast’s recent exploration of hormonal health and the significant startup opportunities within that domain.

Maintaining Composure: Google Algorithm Updates and SEO Strategy

A leading SEO consultant, Eli Schwartz, will be participating in a discussion with Managing Editor Danny Crichton tomorrow. The focus will be on providing guidance for SEO managers who experience anxiety during Google algorithm updates.

In preparation for their conversation on Twitter Spaces, Eli has contributed a guest post designed to dispel common misconceptions. A key takeaway is that a decline in search traffic doesn't automatically indicate a negative outcome.

Rather than attempting to directly respond to algorithm changes, Eli recommends that businesses dependent on organic search prioritize enhancing the user experience. He asserts that providing valuable assistance to users is the most effective long-term strategy.

Google’s continuous refinement of its products mirrors the way companies release updates to their own offerings, all aimed at improving the user experience.

According to Eli, a traffic decrease may not signify a genuine loss of potential customers. Frequently, the observed reduction reflects a decrease in impressions that were unlikely to result in clicks to begin with.

This discussion continues a series featuring prominent Extra Crunch contributors. If you have collaborated with an exceptional growth marketer, we encourage you to submit a brief testimonial.

(Extra Crunch is a membership program dedicated to supporting founders and startup teams. Registration is available here.)

Big Tech Inc.

Google is undertaking the construction of a substantial fiber optic trunk line extending to Argentina: Consider the scenario of a major corporation experiencing slower internet speeds between its central offices and a location like Argentina. Would the company simply accept the situation?

Or would it proactively announce plans to “establish a new undersea cable linking the Eastern seaboard of the United States with Las Toninas, Argentina – including further connection points in Brazil and Uruguay,” as Google has done?

It is anticipated that the latter course of action will be pursued.

Creator Week at Facebook

Interestingly, this week has been designated as “creator week” by Facebook. As it happens, Big Blue revealed a “native affiliate tool” for Instagram.

This tool will empower “creators to suggest products available through checkout, share these with their audience, and receive commissions on sales generated by their posts.”

While this feature might be perceived as disruptive by users who are not influencers, it could represent a significant benefit for those with substantial followings.

1E Acquisition

$270M was the price tag for end-point security firm 1E: The increasing prevalence of remote work arrangements translates to a growing number of end-points that organizations must protect.

Therefore, Carlyle’s acquisition of 1E for a quarter of a billion dollars is a logical development.

Crunchbase lacks funding information for the London-based company, suggesting this represents a considerable exit achievement for its team.

This acquisition underscores the rising importance of robust end-point security solutions in the modern work environment.

TechCrunch Experts: Focus on Growth Marketing

TechCrunch is initiating a new phase of its Experts project, concentrating on the field of growth marketing.

We are soliciting input from startup founders regarding the professionals they consult for cutting-edge growth marketing strategies.

Your participation is requested through this survey: [link to survey].

Project Goals and Benefits

The collected data will be compiled into a comprehensive database, publicly accessible to all.

A larger number of responses from our readership will directly enhance the depth and quality of our future editorial content.

Further details about the TechCrunch Experts project can be found at techcrunch.com/experts.

• Growth Marketing is the central theme of this initiative.
• Founders are being asked to identify their preferred growth marketing specialists.
• The resulting database will serve as a valuable resource for the startup community.

We anticipate that this project will provide valuable insights into the current landscape of growth marketing practices.

Engage with Our Community

A discussion is scheduled for tomorrow at 12:30 p.m. Pacific Daylight Time / 3:30 p.m. Eastern Daylight Time, hosted on Twitter Spaces.

Danny Crichton, a member of our team, will be leading a conversation centered around Eli Schwartz’s recent guest article, titled “Don’t panic: ‘Algorithm updates’ aren’t the end of the world for SEO managers.”

Participants are encouraged to prepare their questions and insights for a dynamic exchange.

We invite you to join us and contribute to the discussion!