Better.com CEO Vishal Garg to Take Time Off After Firings

Daily Crunch: December 10, 2021

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Welcome to Daily Crunch

Greetings, and welcome to the Daily Crunch for December 10, 2021. It's Friday, and the tech news cycle is approaching a slowdown as many prepare for a period of reduced activity during the holidays.

However, a robust collection of tech-related updates remains, encompassing both established corporations and emerging startups. Let’s proceed to the news!

—Alex

The TechCrunch Top 3

The recent events surrounding Better.com’s CEO have garnered significant attention. Typically, tech executives don't achieve widespread public recognition.

However, the CEO of Better.com became a viral sensation after a video surfaced of him conducting mass layoffs via Zoom in a rather insensitive manner.

Following this incident, further revelations about his behavior have come to light, leading to his decision to step back from his leadership role within the company.

Europe’s Tech Sector Growth

Analysis of the latest Atomic-Dealroom report indicates continued strong growth within the European startup ecosystem. The Exchange team dedicated considerable time on Friday to examining the report’s findings.

While 2021 represented an exceptionally successful year for EU startups, projections suggest that even greater achievements are possible in the coming periods.

Flink Secures Substantial Funding

German instant grocery delivery service, Flink, has successfully raised $750 million in a single funding round. This substantial investment has propelled the company’s valuation to $2.85 billion.

Although using “Flink” as a verb feels somewhat unnatural, the company’s ambition to become a household name, particularly within its domestic market, is evident.

This funding positions Flink to further expand its rapid grocery delivery services and solidify its presence in the competitive market.

Startups/VC

The wave of initial public offerings (IPOs) from 2021 is largely concluding, with Samsara’s offering being the final one anticipated. What conclusions can be drawn from the recent public debuts of HashiCorp and Nubank? The market demonstrates continued strong interest in both open-source software (OSS) and financial technology, supporting unicorn valuations.

Startup News

• HURR and the Fashion Rental Market: Rent the Runway’s IPO revealed challenges in covering operational expenses, and the company has faced difficulties as a publicly traded entity. However, HURR, a British competitor, is attempting to refine the rental model. As reported by TechCrunch, several business model adjustments and additions could significantly impact its success.
• Wisdom – A New Approach to Mentorship: Wisdom is a startup developing a social audio application centered around providing life advice and expanding access to mentorship opportunities. It presents a contrasting concept to the Equity podcast, focusing on a different form of audio engagement. The company recently secured $2 million in funding. Instead of user numbers, they highlighted that mentors on the platform have collectively contributed 600,000 minutes of audio content.
• Nuvocargo’s Rapid Growth: Nuvocargo, a Latin American logistics startup specializing in cross-border trade, has secured a $20.5 million investment from Tiger Global. This funding round more than doubled the company’s valuation to $180 million, a significant increase from its $70 million valuation earlier in the year. Notably, TechCrunch reports that Nuvocargo had substantial funds remaining from its previous round when Tiger approached them.
• The Rise of Dark Stores: The dark-store model, initially prominent in Europe, is gaining traction elsewhere. Tiggy, a Canadian startup, recently raised $6.35 million to support its operations in this space.
• Breakout Ventures Launches Second Fund: Breakout Ventures has successfully launched its second fund, totaling $112.5 million. This fund includes investment from the Thiel Foundation. The continued flow of capital from Peter Thiel into the tech sector is noteworthy, particularly given his simultaneous support for political candidates critical of tech companies.
• Equity Podcast Update: For those seeking engaging tech news and analysis, a recent episode of the Equity podcast featuring Natasha and Mary Ann is available.

These developments highlight the dynamic nature of the startup ecosystem and the continued flow of venture capital into innovative companies. Investment continues to fuel growth across various sectors, from logistics to mentorship and fashion.

Key Marketing Shifts Anticipated in 2022

Image Credits: Adam Drobiec/EyeEm (opens in a new window) / Getty Images

The landscape of growth marketing has undergone substantial alterations since the onset of the pandemic.

Changes to Apple’s iOS 14.5 regarding user privacy, increased regulatory scrutiny of browser cookies, and the widespread phenomenon known as The Great Resignation represent significant influencing factors.

Jonathan Metrick, chief growth officer at Sagard & Portage Ventures, and Simon Lejeune, user acquisition lead at Wealthsimple, observe that past successes do not guarantee future outcomes.

Their projections for the coming year include:

• A decline in available data coupled with heightened privacy concerns, leading to a resurgence of growth hacking techniques.
• The increasing prominence of TikTok, influencer marketing, and natively created content.
• The challenges presented by The Great Resignation and the intense competition for skilled growth marketing professionals.

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

Big Tech Inc.

Recent reports from Jumia indicate positive results from their Black Friday sales event. The company experienced a 30% increase in Gross Merchandise Volume (GMV) during the Black Friday period.

Whether this growth is substantial enough to significantly improve Jumia’s overall financial performance remains to be seen. Further details will be available in their Q4 2021 financial reports.

However, the data does highlight the continued expansion of e-commerce across the African continent.

Investment and Blockchain Developments

Coinbase Ventures has invested in Router Protocol, a project focused on cross-chain communication. Router Protocol aims to connect layer one and layer two blockchain solutions.

The architecture differs from the typical approach of improving layer one blockchains directly. The rationale behind this approach isn't immediately clear.

Security Concerns

A newly discovered zero-day vulnerability poses a threat to numerous widely used web services. The exploit affects a commonly used Java logging library.

This security flaw was reported on Friday and requires immediate attention from system administrators and developers.

Startup Support in Spain

Spain is actively working to foster a more vibrant tech startup ecosystem. A proposed law is currently under consideration to streamline processes for entrepreneurs.

The draft legislation seeks to reduce administrative burdens and simplify investment procedures for startups operating within the country. This aims to encourage innovation and economic growth.

The goal is to “cut red tape and remove bureaucratic obstacles for founding and investing in startups” throughout Spain.

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