Meta Rebrand: Zuckerberg Explains Facebook's New Name & Mission

Daily Crunch: October 28, 2021

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A Shift in Focus

Greetings, and welcome to the Daily Crunch for October 28, 2021. Following the successful conclusion of our recent SaaS event – considerable appreciation is due to the TechCrunch events and sales teams for their continued success – our attention is now turning toward other areas.

Specifically, the focus is shifting back to the evolving landscape of the metaverse?

– Alex

The TechCrunch Top 3

Facebook’s rebranding to Meta signifies a strategic move to establish a parent brand encompassing its diverse initiatives.

This new corporate identity directly reflects the company’s focus on the metaverse, making the name change logically consistent.

While public reception has been mixed, discerning genuine feedback on the name itself from general criticism of Facebook remains challenging.

Further details regarding this development can be found in our dedicated Big Tech section.

NerdWallet’s Unicorn Status

NerdWallet, a prominent online financial content provider, is poised to achieve a valuation exceeding $1 billion as it prepares for its initial public offering (IPO).

Recent IPO filings indicate this significant milestone for the company, which has built its success on content creation.

As a publication prioritizing written content, TechCrunch has offered its perspective on this matter.

Apple and Facebook’s Dispute

During its recent event, Facebook – now operating as Meta – publicly criticized Apple.

These criticisms should be evaluated independently of the broader branding and virtual reality announcements made by the company.

Apple’s updated privacy regulations have negatively impacted Facebook’s business, leading to the social media giant’s dissatisfaction.

The financial repercussions of these changes are a key point of contention between the two tech companies.

Startups and Venture Capital Updates

Recent developments in the startup landscape include Allbirds' impending IPO, with TechCrunch detailing its valuation. This, alongside Rent the Runway’s performance, is establishing a valuation range for tech-enabled companies going public.

Startup Funding and Innovations

Several startups have recently secured significant funding rounds, driving innovation across various sectors.

• Atlys: Streamlining Visa Applications – The company has raised $4.25 million to simplify the visa application process. While international travel is currently reduced, Atlys aims to ease the complexities of travel documentation when demand rebounds.
• Cover: Prefabricated Housing Solutions – Cover is developing prefabricated home components manufactured in a factory and assembled on-site without cranes. A recent $60 million funding round supports their efforts to address the U.S. housing crisis.
• Inrupt: Reclaiming Data Privacy – Founded by Tim Berners-Lee, Inrupt is seeking $30 million to $40 million in funding to build a platform empowering users with control over their online data.
• OneRoof: Hyperlocal Social Networking – OneRoof is creating a more focused version of Nextdoor, aiming to connect neighbors in even smaller communities. The company secured $1.25 million in funding.
• Hinge Health: Revolutionizing Chronic Pain Management – Hinge Health has raised $400 million to focus on chronic musculoskeletal conditions, such as back and knee pain. Their $6.2 billion valuation reflects the substantial potential within the American healthcare market.
• Alchemy: Infrastructure for the Crypto Industry – Alchemy provides essential infrastructure to numerous cryptocurrency companies and has secured $250 million in a highly competitive funding round.
• Yugabyte: Database Innovation and Unicorn Status – Yugabyte, a database company, has achieved unicorn status with a $1.3 billion valuation after raising $188 million.
• Dragos: Industrial Cybersecurity Leader – Dragos, specializing in industrial cybersecurity, has raised $200 million, achieving a $1.7 billion valuation. Their work is crucial for protecting critical infrastructure.

Fundraising Advice from Sequoia

TechCrunch’s Neesha Tambe recently shared insights from a conversation with Sequoia, offering valuable fundraising tips for startups navigating the current market conditions.

These updates highlight the continued investment and innovation occurring within the startup ecosystem, despite ongoing economic uncertainties.

The Expanding BNPL Landscape: Competition Heats Up Among Financial Institutions

The notion of allowing customers to postpone payments for purchases isn't novel, but the recent advancements made by companies such as Klarna, Afterpay, and Affirm have significantly reshaped the landscape.

Consequently, established credit card networks and payment processors are now actively responding to this evolution.

Mary Ann Azevedo and Ryan Lawler have observed a “gradual development” within the Buy Now, Pay Later (BNPL) sector, characterized by increasing collaboration between traditional financial entities, innovative payment startups, and prominent businesses.

Visa and Mastercard Enter the BNPL Arena

Visa recently revealed that a growing number of businesses are leveraging its technology to facilitate point-of-sale BNPL options.

Similarly, Mastercard introduced Mastercard Installments last month, representing its dedicated solution within the BNPL market.

As Ryan and Mary Ann noted, the increased involvement of major credit card companies in BNPL is anticipated.

They suggest that the delay in their response is somewhat surprising, given the sector’s rapid growth.

This indicates a strategic shift as these companies seek to capitalize on the increasing consumer demand for flexible payment solutions.

(TechCrunch+ is a membership program designed to empower founders and startup teams. Registration is available here.)

Big Tech Inc.

Prior to detailing the latest Facebook news, it’s worth noting that Twitter also generated some attention today. The platform is now enabling recording functionality within its Spaces audio chat rooms.

Furthermore, the “Blue” subscription service will now provide subscribers with prioritized access to new features.

Further Announcements from Facebook:

• Facebook has previewed Polar, a new mobile application designed for the creation of augmented reality filters.
• Audio calls within Facebook Messenger will soon be available on the Oculus Quest platform.
• The Oculus Store is being expanded to accommodate 2D progressive web applications.
• Slack is also being introduced to the Oculus Quest.
• The company, previously known as Facebook, has discontinued the use of the ‘Oculus’ brand.

Updates from Other Major Technology Companies:

• An examination of major players entering the Buy Now, Pay Later (BNPL) market is underway. While Affirm established itself as a pioneering BNPL startup and achieved a public listing, traditional financial institutions are also seeking a share of this growing sector.
• Apple’s “App Privacy Report” is currently in beta testing, a development likely to be met with mixed reactions from other companies.

It’s important to recognize that while Apple’s increased focus on data privacy may benefit consumers, the motivation primarily stems from Apple’s own strategic objectives.

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