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Daily Crunch: January 13, 2022

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Greetings, and welcome to the Daily Crunch for January 13, 2022. The rapid passage of time is notable, as Thursday is nearly over despite feeling like Monday morning just moments ago.

The current speed of 2022 is remarkable. There's a degree of optimism within the market that the rate of change will decrease, potentially leading to lower costs.

Market Sentiment and Facebook's Dating App

However, a slowdown doesn't appear probable in the near future. Alongside this, news has emerged regarding the discontinuation of Facebook’s dating application.

This raises the question: was Facebook still actively developing dating apps? The decision to end the service is noteworthy.

– Alex

Further Developments

The market continues to be observed for signs of stabilization. The possibility of reduced expenses remains a topic of discussion among investors and analysts.

Facebook’s choice to cease operations of its dating platform is a surprising development, given its existing user base and resources.

Key Takeaway: The tech landscape is evolving rapidly, with shifts in market conditions and strategic decisions from major players like Facebook.

TechCrunch's Top 3 Updates

Here's a rundown of the most significant stories from TechCrunch today. These updates cover shifts in startup investment, expansions in grocery delivery, and developments from a major data analytics firm.

Y Combinator's Evolving Investment Terms

Y Combinator is adjusting its investment approach, increasing the capital provided to companies within its accelerator program. This change is generating discussion within the investment community.

While increased funding from Y Combinator is generally beneficial for startups, some investors are expressing reservations about the new terms.

Instacart's Expansion into Pre-Made Meals

Instacart is diversifying its offerings by introducing pre-prepared meals to its platform. This move aims to enhance its competitive position in the increasingly crowded grocery delivery market.

The company experienced substantial growth in 2020, but saw a deceleration of that growth rate in the following year.

Databricks Launches Verticalized Lakehouse

Databricks, a leading private data analytics company, has unveiled a specialized version of its "Lakehouse" platform.

The "Lakehouse" architecture is designed to function above a data lake, offering enhanced data management capabilities.

This release is seen as a key indicator of Databricks' maturity as a major player in the industry, fueling anticipation for a potential initial public offering (IPO). Many are eager to see the company's financial data publicly released.

The call for Databricks to go public and share its financial performance is growing stronger.

Startups/VC

Today’s update contains a wealth of information, so let's proceed directly to the highlights.

• Turnip and the Gaming Community: The name “Turnip” is genuinely appealing – memorable and easy to pronounce. The company’s use of a .gg domain further emphasizes its focus on the gaming community. This TLD is particularly relevant for gamers, mirroring the significance of a .eth domain for certain Twitter users.
• Arc's Alternative Financing Approach: Arc has recently emerged from stealth mode with a mission to provide capital access to software companies. They also aim to assist with broader financial management. Mary Ann Azevedo has provided detailed coverage of their strategic plans.
• Gr4vy Secures Funding for Payments Orchestration: Gr4vy has raised a Series A extension to advance its work in “payments orchestration.” This involves creating a unified software layer that integrates various payment options. Essentially, it’s a comprehensive bundle rather than a simple conductor, though “orchestration” is a more compelling term.
• A Nod to Gr4vy’s Retro Branding: It’s worth noting Gr4vy’s clever incorporation of leetspeak into its name, a charmingly retro touch.
• GoFundMe Acquires Classy: GoFundMe, widely recognized for its role in U.S. healthcare and disaster relief fundraising, has acquired Classy. Classy focuses on fundraising solutions for nonprofit organizations. Amanda Silberling reports this was an equity-based transaction.
• Yahaha Studios: A No-Code Metaverse for Games: Based in Espoo, Finland, Yahaha Studios has secured $50 million in funding across three rounds. They are developing a no-code platform envisioned as a “metaverse for games.” This venture is particularly intriguing given the success of Roblox and a general interest in gaming.
• Krafton's Legal Action Against Tech Giants: Krafton, the publisher of PUBG Mobile, is pursuing legal action against Apple, Alphabet, and Garena Online. The lawsuit alleges that these companies have copied key elements of PUBG Mobile, including its opening sequence, game structure, weapon selection, and visual design.
• UBITS Invests in Latin American Workforce Development: While the edtech boom of 2020 has subsided, UBITS is continuing to secure funding. The company is focused on “upskilling” workers in Latin America, providing training for more advanced roles.

Beyond these key updates, numerous other ventures are making waves. One startup proposes a 4% savings rate, a notably ambitious claim. Another is developing appealing sidewalk robots. Shield has raised $15 million for communications compliance software, and Fintech Farm is focused on creating neobanks tailored to emerging markets.

Creating Effective Lead Magnets for Enhanced Conversion Rates

Attracting visitors to your website is only the first step; persuading them to provide contact information or consider a purchase presents a greater challenge.

According to Aleksandra Korczynska, CMO at GetResponse, marketers who focus on aligning lead generation efforts with the needs of potential customers will see substantial improvements.

She emphasizes that the core strategy lies in establishing an initial point of contact that fosters ongoing interaction – this is achieved through the use of lead magnets.

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The Importance of Value-Driven Lead Magnets

A successful lead magnet isn't simply about collecting data; it’s about providing genuine value upfront.

This value exchange builds trust and positions your brand as a helpful resource.

Consider what problems your target audience faces and create a resource that directly addresses those pain points.

Types of High-Converting Lead Magnets

Several formats consistently prove effective in attracting leads.

These include:

• Ebooks and Guides: In-depth resources offering comprehensive information on a specific topic.
• Checklists and Templates: Practical tools that simplify complex tasks.
• Webinars and Workshops: Interactive sessions providing expert insights.
• Free Trials and Demos: Allowing potential customers to experience your product firsthand.
• Discount Codes and Coupons: Incentivizing immediate purchase.

The optimal choice depends on your industry, target audience, and the nature of your offering.

Focus on creating a lead magnet that is highly relevant, easily consumable, and delivers tangible benefits.

Aligning Lead Magnets with Customer Goals

To maximize conversion rates, ensure your lead magnet directly relates to the customer’s objectives.

For example, if a prospect is researching project management tools, a template for a project plan would be far more appealing than a general marketing guide.

By demonstrating an understanding of their needs, you increase the likelihood of engagement and ultimately, conversion.

Big Tech Inc.

Meta has discontinued its speed-dating service, demonstrating the company’s tendency to explore a wide range of digital product concepts.

It wouldn't be surprising to discover internal teams are currently developing early versions of previously abandoned platforms, such as FriendFeed, despite the departure of key figures like Bret Taylor.

Speed-Dating Service Closure

Facebook's decision to shut down this particular service raises the question of whether it will be missed by users.

Venmo's New Feature

Venmo has introduced a new feature allowing users to virtually ‘wrap’ their money transfers.

This addition provides a novel way to send funds, potentially addressing complaints about the lack of festivity when simply gifting money.

Implications of the Update

The new feature allows users who dislike gift wrapping and are reluctant to give money to experience a combined sense of annoyance.

Now, parents can no longer argue that providing monetary gifts lacks the celebratory spirit of traditional presents.

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