Backdrop App: Discover Beautiful Destinations Through Social Media

Daily Crunch: September 28, 2021

A daily digest of TechCrunch's most significant and impactful news is delivered to inboxes each day at 3 p.m. PDT. You can subscribe to this roundup here.

Welcome Back

Greetings, and welcome to Daily Crunch for September 28, 2021. We extend our gratitude for the positive feedback received regarding yesterday’s TechCrunch+ rebranding initiative. It was genuinely appreciated.

TechCrunch+ Event

TechCrunch’s upcoming event, concentrating on SaaS, is now available with potential savings. Details and registration can be found here.

I will be hosting the event, and a selection of moderately amusing jokes will accompany the scheduled panels and discussions.

A thoroughly enjoyable experience is anticipated! — Alex

TechCrunch's Leading Stories

Recent announcements from Amazon showcase a significant expansion into hardware. This includes the unveiling of a home robot, a new video communication device, and a fitness tracker.

The $999 Astro robot is currently generating the most discussion, but Amazon’s broader hardware portfolio is substantial. It’s noteworthy that major software companies, like Amazon, are also heavily invested in hardware development, mirroring efforts seen from companies like Microsoft.

Rivian R1T Electric Truck Review

Kirsten Korosec, TechCrunch’s expert in transportation, has published a review of the 2022 Rivian R1T electric truck. Her assessment is overwhelmingly positive.

Key highlights include the truck’s impressive terrain adaptability, rapid acceleration, and attention to interior design. Despite its luxurious features, the R1T demonstrates considerable robustness and durability.

The Growing Climate Tech Sector

Korosec also recently released an in-depth analysis of the climate tech landscape. The article emphasizes the considerable hurdles and plentiful possibilities for startups addressing the escalating climate crisis.

Startups have proven adept at generating revenue through software innovation. It is anticipated that emerging technology companies will also contribute to mitigating climate change and preserving the planet.

The potential for technological solutions in this area is immense, offering a crucial pathway towards a sustainable future.

Startups & Venture Capital Updates

Prior to a detailed review of today’s venture capital activity, TechCrunch previewed the anticipated results for the third quarter, outlining five key areas of inquiry. These include the current state of venture investment within China and an analysis of Latin American figures to gauge regional startup expansion.

New Ventures and Innovations

Backdrop was recently examined by TechCrunch’s Tage Kene-Okafor, a startup developing a “photo-sharing application integrating technology, social networking, and travel.” The question posed was whether another mobile app for discovering scenic locations is truly necessary. Could Instagram be facing a new competitor?

Highnote Challenges Marqeta: The card issuance landscape is increasingly competitive, as detailed in TechCrunch+, and is poised to become even more so. Having secured $54 million in funding, Highnote has officially launched, presenting a solution designed to simplify the provision of virtual payment cards for businesses of all sizes.
Stark Enhances Software Accessibility: Accessibility isn't solely a focus for Microsoft. Stark is developing technology to empower a wider range of companies to prioritize accessibility. Currently in private beta, their product allows users to upload designs for analysis, identifying potential accessibility issues and suggesting improvements.
Heydoc Secures $8.3M for Medical Data Management: Heydoc, focused on streamlining “medical data and administrative processes” for healthcare professionals, has received new funding. They plan to expand their operations beyond their current base in the U.K. to other international markets.
Lifebit Receives Significant Tiger Funding: Tiger Global has once again made a substantial investment, this time in Lifebit. The company facilitates access to crucial biomedical data, aiding in pharmaceutical research and development. This approach shares similarities with Cellino, though from a distinct perspective.
Rize Attracts $11.4M for Embedded Fintech: Embedded banking solutions are becoming increasingly prevalent. Rize differentiates itself by consolidating various account types under a unified user profile, utilizing what they term "synthetic accounts."

This funding round highlights the diverse range of innovation occurring within the startup ecosystem, from travel and accessibility to healthcare and financial technology.

Key Takeaways

The current venture capital climate continues to support a broad spectrum of startups. The focus remains on solutions that address real-world problems and offer innovative approaches to existing challenges.

Selecting the Appropriate Venture Debt for Your Startup

Founders of startups now have a wider array of fundraising avenues available compared to previous years, largely due to an abundance of available capital. Beyond conventional venture capital, options such as crowdfunding, venture banks, and venture debt funds are all feasible choices.

Andy Weyer, managing director of technology at Runway Growth Capital, provides a comprehensive analysis of venture debt options. He illustrates three distinct scenarios demonstrating how debt financing can be advantageous for borrowers aiming to preserve equity for subsequent funding rounds or secure operational funding.

Weyer suggests visualizing capital availability as a continuum. This spectrum ranges from lower-risk, lower-return instruments like venture banks to higher-risk, higher-return investments such as venture capital, with venture debt funds positioned in between.

Understanding the Venture Debt Landscape

The choice of venture debt hinges on a startup’s specific needs and risk tolerance. Different types of debt cater to varying stages of growth and financial profiles.

Consider the trade-offs between control, cost of capital, and speed of access when evaluating these options. Each approach presents unique advantages and disadvantages.

Use Cases for Debt Capital

Debt capital can be strategically employed in several ways. It can be used to extend a company’s runway, fund specific projects, or bridge the gap to the next equity round.

By carefully aligning debt financing with business objectives, startups can optimize their capital structure and maximize their potential for success.

Venture Banks vs. Venture Debt Funds

Venture banks generally offer lower rates and more conservative terms, but may require more stringent collateral or guarantees. Venture debt funds, conversely, are often more flexible but come with higher interest rates.

The optimal choice depends on the startup’s creditworthiness, growth trajectory, and willingness to share equity.

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

Big Tech Inc.

Recent developments in the application store landscape have been marked by Microsoft's announcement regarding its store policies.

The company will now permit the inclusion of third-party storefronts, a move that addresses concerns surrounding app marketplace commission rates and openness.

Whether this represents a substantial shift or primarily a public relations initiative remains to be seen.

Blue Prism Acquisition

The Robotic Process Automation (RPA) sector is experiencing consolidation following UiPath’s initial public offering (IPO).

Vista Equity Partners has agreed to acquire Blue Prism for approximately £1.095 billion.

This acquisition aims to integrate Blue Prism with another company already within Vista’s investment portfolio.

Blue Prism is a publicly traded company, making it a well-known entity in the industry.

Cloudflare Challenges AWS

Cloudflare has traditionally been recognized for its content delivery network (CDN) services.

However, the company is now expanding its offerings to directly compete with Amazon Web Services (AWS) in the cloud infrastructure market.

Cloudflare intends to challenge AWS with R2, an upcoming service designed to rival Amazon’s S3 storage solution.

A key differentiator for R2 will be the elimination of data egress fees, potentially creating pricing pressure for Amazon.

This move could significantly impact the cloud storage market.

TechCrunch Insights: Identifying Leading Growth Marketing Professionals

Image Credits: SEAN GLADWELL / Getty Images

TechCrunch is dedicated to assisting startups in locating the most suitable experts to address their specific requirements.

Currently, we are compiling a curated list of premier growth marketers within the industry.

Since the launch of our survey, we have received numerous valuable suggestions regarding accomplished growth marketing professionals serving the startup ecosystem.

Seeking Further Recommendations

We anticipate receiving and reviewing additional submissions as they are provided.

Your input is valuable! Please contribute your recommendations by completing the survey available here.

The goal is to create a definitive resource for startups seeking to accelerate their growth through effective marketing strategies.

This initiative aims to connect startups with proven growth marketing talent.
The survey is a key component in identifying top professionals.
TechCrunch is committed to supporting the startup community.

Participation in the survey will directly contribute to the development of a comprehensive and reliable list of growth marketers.