Robinhood Files for IPO: Daily Crunch

Daily Crunch: July 1, 2021

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Greetings, and welcome to today’s Daily Crunch for July 1, 2021. The initial public offering of Robinhood is the primary news event. This afternoon, the U.S.-based consumer financial technology firm submitted its IPO filing.

Robinhood's IPO Filing

The filing is anticipated to be among the most noteworthy IPOs of the third quarter. It marks a significant moment for the company and the fintech sector.

Beyond this major development, a substantial amount of other startup-related news is available. Remember to note that the next TechCrunch event is scheduled for next week!

Additional Startup News

• A wealth of information regarding emerging companies is currently accessible.
• The upcoming TechCrunch event will provide further insights into the tech industry.

— Alex

TechCrunch's Leading Stories

Here's a summary of the top three tech news items from TechCrunch today, offering insights into recent developments.

Robinhood's IPO and Financial Performance

Robinhood is preparing for its initial public offering (IPO). Initial analysis of the company’s IPO filing revealed a rapidly expanding consumer fintech business.

While the company achieved profitability in 2020, it experienced a net loss in the first quarter of 2021.

However, as previously reported by TechCrunch, this loss is not considered significant.

Robinhood concluded the first quarter of 2021 with an annualized revenue exceeding $2 billion.

Apple's Latest Software Releases

Apple is continuing its rollout of new software updates.

Following the release of public beta versions for iOS 15 and iPadOS 15, the public beta of macOS 12.0 Monterey has now been made available.

Users willing to participate in testing can download the beta version now.

For other users, a mandatory corporate update containing these changes will be released in the future.

Articulate's Significant Funding Round

Articulate, a corporate edtech company, has secured $1.5 billion in a Series A funding round.

This substantial investment values the company at $3.75 billion.

The round is notably large for a Series A, and was a major story until the news surrounding Robinhood’s IPO took precedence.

Articulate had previously operated on a bootstrapped basis for an extended period before seeking external funding.

Startups and Venture Capital Updates

Returning to several themes that TechCrunch has recently covered in detail, new information has emerged concerning Karat, a digital bank specifically designed for individuals involved in the creator economy. It appears there's a growing interest in capitalizing on the revenue streams of content creators.

Additionally, TechCrunch provides updated insights into the potential future of Initial Public Offerings (IPOs) within the European startup landscape.

Here's a summary of today's funding rounds:

• Nowports Secures $16M for Latin American Freight Automation: The demand for supply chain software solutions remains high, and Nowports is aiming to establish a strong presence in this expanding market. This latest funding round was spearheaded by Mouro Capital, bringing the startup’s total funding to approximately $24 million.
• Codat Obtains $40M to Develop a SMB Financial Data Platform: Application Programming Interfaces (APIs) are increasingly prevalent, particularly within the fintech sector. Codat intends to replicate the functionality of Plaid, but specifically for Small and Medium-sized Business (SMB) financial data, and has secured backing from Tiger Global.
• Mercado Bitcoin Attracts $200M Investment: Following the direct listing of Coinbase and robust cryptocurrency trading activity in the previous quarter, it’s logical that fintech companies facilitating bitcoin transactions are gaining attention. The substantial investment received by Brazil’s Mercado Bitcoin aligns with this trend.
• Rohlik Receives €100M to Expand European Grocery Delivery: For European consumers seeking convenient grocery shopping, Rohlik, a Czech startup specializing in online grocery ordering and delivery, has secured €100 million in funding. This valuation places the company at €1 billion.
• Ghost Raises $100M for Autonomous Vehicle Safety: The development of self-driving car technology continues to attract significant investment. Ghost, distinct from the web content management system, is focused on creating “universal collision avoidance technology” for autonomous driving systems.

Evolving Cybersecurity: Protecting Data Beyond Traditional Defenses

Protecting data from loss and unauthorized use necessitates a shift in the cybersecurity discussion. Securing data centers and networks against external threats represents only a portion of an organization’s overall security obligations.

The increasing reliance on cloud services, collaborative platforms, and APIs significantly expands security boundaries.

Furthermore, systems designed to prevent data misuse frequently rely on the ethical conduct of individuals.

The Need for Data Misuse Protection (DMP)

Sid Trivedi, a partner at Foundation Capital, and Mark Settle, a seasoned CIO with seven prior engagements, propose a transition from current Data Loss Prevention (DLP) frameworks to a new model focused on Data Misuse Protection (DMP).

This new approach will equip data assets with enhanced, self-protective capabilities.

Rather than solely depending on monitoring traditional security perimeters, DMP proactively safeguards information.

Emerging DMP Solutions

Numerous startups are currently developing and offering solutions within the DMP space.

These solutions aim to provide more sophisticated self-defense mechanisms for sensitive data.

This represents a fundamental change in how organizations approach data security.

(Extra Crunch is our membership program designed to empower founders and startup teams. Sign up here.)

Big Tech Inc.

Several recurring topics from our coverage of startups have resurfaced, and this also applies to our analysis of major technology corporations. Focusing on the intersection of government and technology:

Regulatory Challenges & International Relations

India's Stance on Big Tech Continues: Manish Singh reports that the Reserve Bank of India recognizes the expansion of Big Tech into financial services as a potential disruption to banks within the South Asian region.

This growing presence has raised concerns regarding the establishment of an imbalanced competitive landscape. It’s worth noting that India has previously expressed dissatisfaction with Twitter and maintains ongoing disputes with various other technology firms.

Fines and Regulatory Actions

Airbnb Fined in Paris: Airbnb was issued an €8 million fine by the city of Paris today.

This penalty represents 0.14% of the company’s $6.6 billion cash reserves reported at the close of the first quarter. The Daily Crunch acknowledges the City of Light’s successful enforcement of its regulations.

Social Media Platform Policies

Pinterest Bans Weight-Loss Advertising: A noteworthy policy change from Pinterest involves the prohibition of advertisements promoting weight loss.

Given the prevalence of eating disorders, body image issues, and related mental health concerns, Pinterest is removing a category of advertising that could potentially be detrimental.

While the financial implications for Pinterest are unclear, this decision may signal a trend toward increased self-regulation of advertising content on social media platforms.

• Key Takeaway: This move could foreshadow more proactive regulation of ads across various social media platforms.

We refrain from offering undue praise, as the financial impact on the company remains unknown, but the decision is a positive step.

TechCrunch Experts: Growth Marketing

Startup founders are being contacted to share their preferred growth marketing specialists. A survey is available for submissions detailing who they consult for current growth marketing strategies.

One of the received recommendations is presented below.

Marketer's Name: Amy Konefal

Recommender's Name: Dan Reardon, previously with vudu.com

Recommendation: Amy was instrumental in achieving significant growth as our company reached a valuation of $500 million. She successfully pinpointed and leveraged operational improvements and developed a diverse range of marketing channels.

Community Engagement

The Pittsburgh City Spotlight event proved to be exceptionally well-received! We extend our gratitude to all attendees and the more than 80 organizations that entered submissions for the pitch competition.

For those unable to join us, recordings of the event are available. These include an interview featuring Pittsburgh’s Mayor, a discussion with the President of Carnegie Mellon University, and updates on Duolingo provided by their Engineering Director.

Are exciting developments unfolding in your local area? Please share your suggestions for future city spotlights with us via Twitter.

TC Eventful

Image Credits: Stephanie McCabe / Unsplash

As the extended holiday weekend approaches in the United States, we are launching a Fourth of July promotion. This sale encompasses tickets to all four TechCrunch events scheduled for 2021.

The events included in this offer are TechCrunch Early Stage (July 8-9), TC Disrupt (September 21-23), TC Sessions: SaaS (October 27), and TC Sessions: Space (December 14-15).

This special 4th of July ticket sale begins today and continues through July 6th. During this period, attendees can purchase two tickets for the price of one to any of the upcoming TechCrunch events.

All of our events will be hosted on a virtual platform. You can explore the full event lineup and secure your two-for-one tickets by visiting techcrunch.com/events.