Andela Valuation: Reaches $1.5B After SoftBank Investment

Daily Crunch: September 29, 2021

A daily summary of TechCrunch's most significant and impactful stories can be delivered directly to your inbox each day at 3 p.m. PDT. You can subscribe to this service here.

Greetings and Introduction

Good day, and a warm welcome to Daily Crunch for September 29, 2021. The East Coast of the United States is experiencing weather that strongly suggests autumn's arrival.

While the seasons are undergoing a natural transition, the technology sector and the startup ecosystem continue at an unrelenting speed. This rapid pace has been sustained for an extended period.

Perhaps a period of respite, involving enjoying warm beverages while observing the changing foliage, would be beneficial before continuing with the developments detailed in this newsletter. — Alex

TechCrunch's Leading Three Stories

Here's a rundown of the most significant tech news as highlighted by TechCrunch.

Google's Extensive Search Enhancements

Google, a division of Alphabet Inc., maintains its position as the dominant force in the search engine market. However, with increasing competition, the company is actively implementing improvements to its technology.

Recent announcements include interface redesigns, enhanced wildfire monitoring capabilities, and initiatives to provide more contextualized search results.

While these updates are beneficial, they don't directly address the growing concern of increased ad density on prominent search pages.

The Growing Popularity of Direct Listings

The recent public offerings of companies like Amplitude and Warby Parker demonstrate the increasing viability of direct listings as a path to public market access.

This method presents a compelling alternative for unicorns that may be hesitant about the conventional Initial Public Offering (IPO) process.

SoftBank's Investment in Andela

Despite the recent prominence of Tiger Global in investment news, SoftBank remains a significant player in the venture capital landscape.

The company has announced a $200 million investment in Andela, a startup focused on connecting technology professionals from Africa with global companies.

This investment aligns with the current trend of a shortage of skilled tech workers and the growing recognition of Africa's burgeoning tech industry within the venture capital community.

The funding round supports the narrative of a global talent shortage and increased investment in African tech ecosystems.

Startups and Venture Capital Updates

Let's begin with a focus on climate-related ventures before diving into our general startup news. TechCrunch recently published an in-depth analysis highlighting the significant opportunities available to startups dedicated to addressing climate issues, presenting a path to both global improvement and substantial financial gains.

Recent reports on TechCrunch showcase DroneSeed securing $36 million in funding to support post-wildfire habitat restoration efforts. Additionally, climate volatility played a role in agtech startup Semios obtaining $100 million, and two new investment funds – Investible with AUD$100 million and Energize Ventures with $330 million – are actively exploring the climate-tech sector.

This represents a compelling convergence of themes. Now, let’s move on to the remaining updates:

• Read AI: Managing Speaking Time: Frequent video meetings can sometimes be dominated by a few individuals. Read AI is developing technology to assist meeting participants in monitoring and controlling their speaking time, and has recently raised $10 million to further this development.
• Starfish Space: In-Space Servicing: The modern space race extends beyond prominent players like SpaceX. Numerous startups are focused on building infrastructure for a future where in-space servicing becomes crucial. Starfish Space has secured $7 million to advance its work on developing space tugs – essentially, smaller, orbital versions of tugboats.
• Tonic.ai: Synthetic Data for Engineers: Tonic.ai has raised $35 million to expand its service, which provides engineers with synthetic data sets. These datasets, described as “production-like data,” enable testing without navigating complex regulatory hurdles.
• Cocoon: Simplifying Employee Leave: Cocoon is creating a platform to enhance understanding and management of employee leave policies for both workers and employers. The name, evoking a protective enclosure, aptly reflects the platform’s purpose. The company has raised $20 million and aims to address the often-confusing nature of corporate leave policies.
• EquityBee: Facilitating Employee Stock Options: Venture capital firms are increasingly interested in investing in companies that help employees of venture-backed startups exercise their stock options. EquityBee has received a $55 million investment to assist employees with this process, which can involve significant tax implications and financial burdens.

Essential Questions Startups Need to Address When Challenging Market Leaders

While a truly equitable competitive landscape doesn't exist within capitalism, it's now significantly more achievable for emerging startups to directly compete with established industry giants.

Companies like Warby Parker are redefining how consumers perceive and purchase eyewear, mirroring the strategies employed by Poshmark and thredUP in their challenge to eBay and the high-end resale sector.

The current business climate, characterized by a heightened focus on value over brand recognition and rapidly evolving 18-month planning cycles, provides a unique opportunity for startups with well-defined competitive strategies, according to Sudheesh Nair, the CEO of ThoughtSpot, a business intelligence firm.

He posits in a TechCrunch+ article that “inevitably, startups that demonstrate success will attract the notice of dominant players within their respective industries.”

These incumbents will respond with competitive measures, but Nair believes that startups that are strategically prepared stand a greater chance of success than ever before.

(TechCrunch+ is a membership program designed to empower founders and startup teams. Sign-up details can be found here.)

Big Tech Inc.

YouTube is strengthening its policies regarding vaccine misinformation. The platform, owned by Google, is expanding its ban to encompass content that promotes doubt about all vaccines, not solely those related to COVID-19.

This broadened approach is anticipated to have a positive impact on public health by mitigating the spread of potentially harmful falsehoods.

General Motors' Ultifi Platform

General Motors is preparing to launch a new software platform in 2023, named Ultifi. Reports from TechCrunch indicate the company envisions this platform as a catalyst for significant advancements.

These advancements include providing drivers with access to in-vehicle subscription services and enabling the delivery of new applications and features through over-the-air updates.

Twitch Enhances Security Measures

Twitch is implementing enhanced channel control features in response to a surge in hate raids targeting streamers. These malicious attacks have negatively impacted numerous content creators on the Amazon-owned platform.

The newly introduced security features are designed to reduce harassment and improve the overall safety of the platform for both streamers and viewers.

These measures represent a proactive step towards fostering a more positive and inclusive environment within the Twitch community.

TechCrunch Seeks Recommendations for Top Growth Marketing Professionals

Image Credits: SEAN GLADWELL / Getty Images

TechCrunch is requesting recommendations of accomplished growth marketers possessing skills in areas like SEO, social media, and content creation.

Growth marketers are encouraged to share this survey with their clients. We aim to gather feedback detailing positive client experiences.

Discussion at Disrupt with Ryan Reynolds

During the Disrupt conference, Jordan Crook engaged in a discussion with Ryan Reynolds focusing on marketing strategies.

A summary of this conversation, titled “How Ryan Reynolds has mastered authentic marketing,” is available to TechCrunch+ subscribers.

The article explores Reynolds’ approach to building genuine connections with audiences through marketing efforts.

Time is running out: Secure $100 off TC Sessions: SaaS 2021 passes!

With less than a month remaining until TC Sessions: SaaS 2021 commences, the opportunity to acquire passes at a reduced rate of $100 is nearing its end. Don't delay any longer; finalize your purchase before the early-bird discount concludes on October 1st.

This event represents a crucial opportunity for those involved in the software-as-a-service industry.

Why attend TC Sessions: SaaS 2021?

• Gain insights from leading SaaS experts.
• Network with potential investors and partners.
• Discover the latest trends shaping the SaaS landscape.

The conference agenda is packed with valuable sessions and workshops designed to elevate your understanding of the SaaS business model. Attendees will benefit from actionable strategies and real-world case studies.

Don't miss out on this chance to enhance your knowledge and connections within the SaaS community. The $100 savings represents a significant value, making early registration particularly advantageous.

Remember, the deadline to take advantage of the discounted pricing is October 1st. Secure your pass today to avoid paying full price.