AWS Karpenter: New Open Source Autoscaling Tool Unveiled

Daily Crunch: November 30, 2021

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Welcome to Daily Crunch

Greetings and a warm welcome to Daily Crunch for Tuesday, November 30, 2021. This marks the final newsletter for November, signifying the arrival of December tomorrow.

Preparing for the Holiday Season

Prepare for the concluding weeks of news coverage before the typical slowdown during the Christmas and broader holiday period. Several initial public offerings (IPOs) are still anticipated, so staying informed remains crucial.

Don’t disconnect just yet – important developments are still unfolding! —Alex

TechCrunch's Top 3 Updates

Here's a rundown of the latest significant developments in the tech world, as reported by TechCrunch.

Nubank's IPO Price Adjustment

Nubank, a leading technology firm based in Brazil, has revised its anticipated price range for its initial public offering (IPO). This adjustment signifies that the neobank will offer its shares at a lower price point than originally projected.

Consequently, the total amount of capital raised through the IPO will be reduced, and the company’s overall valuation on the public market will also decrease. TechCrunch has analyzed the potential implications of this news for the wider landscape of Latin American startups.

Further details regarding the company’s financial performance can be found in a separate TechCrunch report.

Facebook and the Giphy Acquisition

The U.K.’s Competition and Markets Authority (CMA) has instructed Facebook to divest itself of Giphy, the popular GIF search engine. This directive compels the social media giant to undo its previous acquisition of the platform.

This represents an unusual instance where a major technology corporation has been compelled to reverse a completed purchase due to regulatory concerns.

Departure of Facebook's Crypto Executive

David Marcus, the head of cryptocurrency initiatives at Facebook, is departing from his position. This announcement follows the recent news of Facebook CTO Mike Schroepfer’s resignation after a 13-year tenure with the company, as reported by TechCrunch in September.

Cyber Week E-Commerce Sales

Online sales figures during the recent Cyber Week period were lower than expected. Following a lackluster Black Friday, TechCrunch investigated the broader trends in e-commerce growth.

According to Sarah Perez, factors such as increased consumer awareness of supply chain disruptions and the availability of early deals may have contributed to a slight decrease in U.S. e-commerce sales during Cyber Week.

Startups and Venture Capital Updates

Prior to reviewing today’s startup news, HashiCorp’s initial public offering (IPO) is anticipated to be quite successful. The U.S.-based cloud infrastructure management company is aiming for a substantial share price, particularly when considering revenue multiples. Could this be positive news for open-source startups in general? We believe it is. (Further details on its financial aspects can be found here.)

Recent Funding Rounds

• BeerOrCoffee Secures $10M: It’s important to note that BeerOrCoffee isn’t focused on artisanal, direct-to-consumer beverages. This São Paulo-based startup instead provides adaptable office spaces. TechCrunch recently investigated its operations and the details of its Series A funding.
• A Novel Payment Model from Massive: Massive, a new startup, proposes a different method for consumers to pay for applications. Rather than using traditional currency or attention-based advertising, they suggest utilizing unused computing power. The concept is intriguing, and we explored the specifics.
• Fundbox Demonstrates SMB Potential: The conventional venture capital belief that targeting small and medium-sized businesses (SMBs) is unfavorable is being challenged. Numerous successful startups are proving this notion incorrect by focusing on SMBs. Fundbox’s recent valuation of $1.1 billion exemplifies this trend, with the fintech company significantly increasing its capital.
• CloudTrucks Focuses on Existing Trucking Infrastructure: While much attention is given to self-driving trucks, CloudTrucks is developing software for trucking companies that still rely on human drivers. The company recently completed a substantial $115 million Series B funding round to support its growth.

Additionally, for startups currently seeking funding, here’s some venture fund news:

Venture Fund Updates

• Sapphire Ventures Raises $2B: Sapphire Ventures has secured a significant amount of capital – $2 billion – for its sixth main fund and third “opportunity” fund. This substantial investment suggests I will likely engage with Jai Das of the firm multiple times each quarter in 2021 to gain insights into market trends.
• Partech Closes $750M Growth Fund: Typically, a venture capital firm raising hundreds of millions of dollars wouldn’t be particularly noteworthy. However, given that Partech is based in Paris, the news is especially significant. It’s a stark contrast to the past perception of Europe’s startup ecosystem as a secondary player.

Perspectives on Jack Dorsey’s Resignation from Twitter’s CEO Position

Image Credits: Joe+Raedle (opens in a new window) / Getty Images

Jack Dorsey initially served as the Chief Executive Officer of Twitter upon its inception. He later became the platform’s fourth CEO as well.

Dorsey guided Twitter from its 2006 debut until he transitioned leadership to co-founder Ev Williams in 2008. He resumed the CEO role in 2015, concurrently managing the fintech company Square.

In a message to staff, Dorsey expressed his views on founder-led companies.

He stated that an overreliance on founder leadership can be restrictive and create a vulnerability. Dorsey emphasized his efforts to enable the company to operate independently of its origins and initial leaders.

The Equity podcast team analyzed his decision to step down in a recent TechCrunch+ article:

• Alex Wilhelm: Advocating for a return to pre-pandemic business practices.
• Natasha Mascarenhas: Suggesting a potential overhaul of venture capital and entrepreneurial strategies.
• Amanda Silberling: Challenging the perception of founders as inherently exceptional figures.

(TechCrunch+ is a membership program designed to support founders and startup teams in achieving their goals. Registration is available here.)

Big Tech Inc.

Current developments in the realm of Big Tech are unfolding across two primary areas. We have the latest updates from major technology companies, alongside a substantial volume of news pertaining to Amazon Web Services (AWS) from our enterprise coverage team.

Key Developments

• Potential Weaknesses in European AI Regulation: According to Natasha Lomas, a group of civil society organizations has expressed concerns that the proposed European legislation “does not adequately safeguard fundamental rights against AI-driven issues.” These include concerns about widespread discrimination and opaque algorithmic bias.
• Mercedes-Benz Investment in Factorial Energy: While this could be categorized as a startup story, it’s noteworthy that the parent company of the Mercedes-AMG Petronas Formula One Team, a consistent winner in Formula 1, is involved. Factorial Energy is focused on developing solid-state battery technology for automotive applications, explaining the interest from the Mercedes-Benz corporate group.
• Twitter's Policy on Abusive Media: In the first significant public relations challenge for its new CEO, Twitter announced a policy to “prohibit the sharing of images or videos of private individuals without their explicit permission.” This decision addresses the difficulty of obtaining consent from subjects in publicly relevant videos, such as law enforcement officials. Twitter acknowledged a public interest exception, but the change still drew criticism.

A Comprehensive Update on Amazon and AWS:

AWS Announcements

• Karpenter: This is a newly released, open-source tool designed for automated scaling of Kubernetes clusters.
• SageMaker Canvas: A machine learning service that requires no coding experience for operation.
• Energy Industry Partner Focus: AWS will be showcasing partners who are creating specialized solutions tailored for the energy sector.
• Serverless Analytics: AWS analytics services are now available in a serverless architecture.
• Trn1: Amazon has unveiled a new machine learning-focused chip, the Trn1.
• Graviton 3: Furthermore, Amazon’s cloud division has introduced a new ARM-based processor, the Graviton 3.
• Further AWS News: Additional details from AWS’ recent event can be found for those seeking more in-depth information.

These announcements demonstrate AWS’ continued innovation across a range of cloud computing services.

TechCrunch Seeks Expert Recommendations

TechCrunch is currently soliciting recommendations for accomplished growth marketers.

Specialized skills in areas like SEO, social media marketing, and content creation are highly valued.

Growth Marketer Survey

Growth marketers are encouraged to share a survey with their clients.

This survey aims to gather insights into positive client experiences and the reasons behind them.

Client feedback will be used to inform TechCrunch’s reporting.

Further Reading on TechCrunch+

For those interested in the methodology behind these surveys, an article by Kerry Cunningham is available on TechCrunch+.

The article, titled “Product-led growth and signal substitution syndrome: Bringing it all together,” provides context on how the survey results will influence coverage.

• The article explores the concepts of product-led growth.
• It also discusses the phenomenon of signal substitution syndrome.

TechCrunch aims to highlight the value delivered by effective growth marketing strategies.