Jack Dorsey on Bitcoin: Twitter CEO Sees Crypto as Future

Daily Crunch: July 23, 2021

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Greetings, and welcome to the Daily Crunch for July 23, 2021. The past week has presented several noteworthy developments for those invested in cryptocurrency.

Jack Dorsey’s Bitcoin Outlook

A particularly prominent announcement originated from Jack Dorsey, the CEO of both Twitter and Square. He stated that bitcoin will represent a substantial component of his companies’ future strategies.

Dorsey articulated his belief that bitcoin functions as the internet’s inherent, or “native,” currency.

While his perspective is noteworthy, alternative viewpoints suggest that more contemporary blockchain technologies might be considered. However, this remains a matter of individual assessment.

— Alex

TechCrunch's Top 3 Developments

This week saw significant movement in the global tech landscape. Key events unfolded in India, with the successful IPO of a major food delivery company, while Snap demonstrated continued growth despite competitive pressures.

Indian IPO Market Revitalized

The initial public offering of Zomato in India proved highly successful. Following a period of market hesitation, the company’s shares experienced a substantial increase in value.

This positive outcome is particularly encouraging for other highly valued Indian unicorns. It signals renewed investor confidence and opens the door for further public offerings.

Snap's Continued Growth

Amidst the intense competition from companies like Facebook and TikTok, Snap continues to expand its user base and revenue streams.

While the company still faces challenges related to cash flow and share-based compensation, its recent growth figures have pleased investors. Consequently, Snap’s stock price has risen.

Regulatory Changes Impacting Chinese Edtech

A significant shift in policy is underway in China, specifically targeting the edtech sector. Reports indicate that the Chinese Communist Party is considering requiring tutoring companies to operate on a nonprofit basis.

This potential regulation has negatively impacted stock prices and is expected to have a considerable effect on the Chinese edtech venture capital ecosystem.

The move represents a broader trend of increased regulatory scrutiny for both startups and established tech companies within China.

Startup and Venture Capital News

Paystand is developing a business-focused equivalent to Venmo, aiming to streamline corporate cash transfers. The existing process for companies sending large sums of money can be inefficient.

Fortunately, Paystand recently secured $50 million in funding to further its development in this area. According to Christine Hall of TechCrunch, the company’s utilization of blockchain technology as a core component was a key factor in her reporting on the funding round.

New Ventures and Experienced Founders

Monarch, a new startup founded by Val Agostino – the initial Product Manager at Mint.com – is positioning itself as a leader in financial management. The company’s core function is to assist individuals in planning their financial futures.

While several companies offer similar services, Monarch aims to provide a superior user experience. Many existing financial management platforms are considered subpar, with examples like the Fidelity website often cited for their usability issues.

SPAC Deal and Public Offerings

Lucid Motors encountered challenges related to shareholder participation in approving its SPAC merger. The electric vehicle company was compelled to prolong the voting period to ensure sufficient votes were cast.

TechCrunch reported that the initial vote on Thursday resulted in approval for all proposals except one, which required a higher threshold of votes. The necessary votes have now been obtained, paving the way for Lucid Motors to become a publicly traded company.

Duolingo's IPO

For those interested in understanding the details surrounding the Duolingo IPO, the Equity team has provided comprehensive coverage of the event.

Their analysis offers insights into the initial public offering and its implications for the language learning platform.

Susan Su's Guidance on Scaling Growth Through Startup Funding Stages

Achieving consistent growth isn't complex when a structured approach to customer acquisition is implemented.

Marketing professionals who reactively chase trends or uncritically adopt popular strategies often experience diminished results.

Susan Su, a leading growth strategist, recently shared, “The core principle behind exceptional retention is surprisingly straightforward.”

She emphasized that creating a product which effectively addresses a genuine and ongoing need for users is paramount.

During a discussion with TechCrunch’s Managing Editor Eric Eldon at TechCrunch Early Stage: Marketing and Fundraising, Su explored various topics.

These included advice for founders on communicating growth strategies to investors and her techniques for constructing a preliminary qualitative growth framework.

Su stated, “I strongly advocate for all founders to actively participate in growth initiatives.”

(Access to exclusive insights and resources for founders and startup teams is available through Extra Crunch. Registration can be found here.)

Big Tech Inc.

Recent developments highlight activity across several key players in the technology sector.

GM Bolt Recall

GM has issued another recall for the Bolt electric vehicle. Specifically, models from the 2017 to 2019 model years are affected due to a potential fire risk.

Owners of these vehicles are advised to participate in the current recall initiative. This recall follows a previous one initiated in November 2020.

The recurring issue emphasizes the ongoing maturation of electric vehicle technology. It also illustrates the challenges faced by early adopters in the EV market.

Taboola Acquisition

Taboola, following its merger with a SPAC, has announced the acquisition of Connexity. Connexity is a marketing technology firm specializing in advertising networks focused on retail and e-commerce.

The purchase price for Connexity is $800 million. Being a publicly traded company facilitates such acquisitions.

Shares of Taboola, a provider of online content recommendation services, experienced a significant increase in trading today.

Tumblr's Paywall Proposal

Tumblr’s recent move to introduce optional paywalls for content creators has been met with considerable user backlash. The intention was to align the platform with the growing creator economy and provide monetization opportunities.

Despite the potential benefits, users have expressed strong disapproval. This situation represents a typical internet-based controversy, though its complexity remains noteworthy.

The negative reaction underscores the difficulties in implementing significant changes to established online platforms.

TechCrunch Experts: Growth Marketing

Startup founders are being contacted to share their preferred sources for current growth marketing strategies.

Participation in the survey can be completed through this link.

A sample testimonial from those surveyed is presented below.

Expert Profile

Marketer: Jonathan Metrick, Portage Ventures

Recommended by: Matt Byrd

Testimonial: Jonathan’s impact at Policygenius was significant. Before his involvement, their marketing initiatives, while intelligent, lacked cohesion.

Messaging lacked uniformity, and the methods used to assess channel performance were underdeveloped.

Jonathan instilled a growth mindset within the team.

He rapidly established a highly effective marketing organization.