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Daily Crunch: June 3, 2021

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Disrupt Agenda Now Available

Greetings, and a warm welcome to Daily Crunch for June 3rd, 2021. For startup founders, early-stage employees, and investors, exciting news is on the horizon from TechCrunch.

The initial schedule for Disrupt is now accessible! This event promises to be exceptionally valuable for anyone focused on the development and expansion of startups.

We anticipate a remarkable showcase of innovation and growth strategies. Attendance is highly recommended for those within the startup ecosystem.

— Alex

TechCrunch's Leading Three Stories

Recent developments highlight significant activity within the tech and aviation sectors. Here's a summary of the top three stories covered by TechCrunch today.

United Airlines and Boom Supersonic

A landmark agreement was announced today regarding United Airlines' intention to acquire 15 supersonic jets from Boom. This represents a substantial milestone for Boom, demonstrating concrete market interest in their innovative aircraft.

The deal also provides a significant boost to Boom's financial standing. It offers a considerable volume of pre-orders, which can be showcased to investors who have contributed close to $250 million to the company, as reported by Crunchbase.

Twitter's Blue Subscription Service

Twitter is introducing its Blue subscription service in select markets. Available for a modest monthly fee, this launch serves as a crucial test for the platform.

The company aims to evaluate the potential for a worldwide subscription model. This option is intended for users who actively engage with the platform and wish to support its continued development.

Underinvestment in Women's Health Tech

TechCrunch's Natasha Mascarenhas explored the landscape of women's health technology today. Her investigation focused on the surprising lack of "unicorn" companies within this substantial market.

The article provides insightful analysis into the reasons behind this underinvestment. It's a compelling read that sheds light on a critical area of the healthcare industry.

Startups and Venture Capital Updates

Today’s news regarding startups and venture capital will be categorized into two distinct sections. The first will cover seed and early-stage funding rounds, while the second will focus on investments in companies that are further along in their development.

Early-Stage Funding News

• Increased Activity in India’s Startup Ecosystem: According to Manish Singh’s reporting for TechCrunch, numerous Indian startups are currently seeking funding. His article highlights the vigorous state of the global venture capital market and the challenges in tracking all ongoing activity.
• Simplified Secures $2.2M for Marketing Creative Solutions: The demand for content creation by marketers is substantial. Simplified is directly challenging Canva within this expansive market. This venture is now supported by Craft Ventures.
• Ganaz Obtains $7M to Facilitate Payments for Agricultural Workers: Not all technology companies target affluent demographics. Ganaz is focused on providing financial solutions for individuals with limited documentation and without traditional banking access, aiming to modernize workforce payment systems. Considering the size of the agricultural industry, this strategy appears promising.

Moving on to developments in the later stages of funding:

Late-Stage Investment Highlights

• Gong Attains $250M for Sales Automation Technology: Gong’s impressive growth and recent funding round were discussed in a recent article, showcasing the company’s compelling trajectory. The sales automation provider has seen its valuation approximately triple, exceeding $7 billion since August of the previous year. This growth is attributed to more than doubling its revenue in the past twelve months.
• Realtime Robotics Gains $31M for Advanced Robotics Software: The Boston startup landscape extends beyond biotechnology. Realtime Robotics, as reported by Brian Heater, is developing robot software designed to simplify system deployment with minimal programming, offering adaptable controls for various systems simultaneously.
• LeoLabs Receives $65M to Mitigate Satellite Collisions: With SpaceX launching a significant number of internet satellites, the issue of orbital congestion is intensifying. LeoLabs is capitalizing on the growing need to prevent collisions between valuable space technology and orbital debris, anticipating substantial growth in this sector.

Space debris and satellite safety are becoming increasingly important areas of investment.

Key Takeaways from a $6.3M Funding Round with 50 Investors

Two years prior, the founders of Reclaim, a calendar-assistant platform, were seeking a substantial seed investment – referred to internally as a “mango” round. This capital was intended to facilitate the shift from a prototype to a fully staffed operation ready for public release.

Despite receiving some offers, co-founder Henry Shapiro notes that these were largely unsuitable, in part due to Reclaim’s pre-product status at the time.

In a recent contribution to Extra Crunch, Shapiro details the lessons gleaned from navigating setbacks and presents three key considerations for “every founder contemplating an investor pitch.”

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

The Challenges of Early-Stage Funding

Securing initial funding can be particularly difficult for companies still in the development phase. Investors often prefer to see a demonstrable product before committing significant capital.

Shapiro’s experience highlights the importance of timing when approaching investors. A premature pitch can result in unfavorable terms or outright rejection.

Lesson 1: The Value of a Working Prototype

A functional prototype is crucial for demonstrating a product’s potential. It allows investors to visualize the concept and assess its feasibility.

Reclaim’s initial lack of a product hindered their fundraising efforts. Having a tangible demonstration would have significantly improved their position.

Lesson 2: Investor Alignment is Paramount

Not all investment offers are created equal. It’s vital to find investors who share your vision and understand your market.

Shapiro emphasizes the need to carefully evaluate potential investors beyond just the financial terms. A strong alignment of values and goals is essential for a successful partnership.

Lesson 3: Embrace Failure as a Learning Opportunity

Rejection is an inevitable part of the fundraising process. Instead of viewing it as a setback, founders should embrace it as a chance to learn and refine their pitch.

The Reclaim team used their initial failures to gain valuable insights and improve their approach, ultimately leading to a successful $6.3M round with 50 investors.

Big Tech Developments

Today brought a flurry of activity from major technology companies, including updates from Waymo, Twitter, and Blackstone. Legal developments also warrant attention.

Waymo and Google Maps Integration

Users can now directly request Waymo taxis through the Google Maps application. This represents a significant step in vertical integration for the company.

Having a presence in self-driving car development, taxi services, and mapping software creates a unique synergy.

Waymo's Expansion Considerations

Calls are being made for Waymo to extend its self-driving taxi services to Providence, Rhode Island.

While not a reflection of the company's courage, increased testing investment in Providence is suggested.

Twitter's Focus on Spaces

Twitter is prioritizing its Spaces audio chat feature within its mobile app. The platform aims to evolve beyond simple text-based posts.

Big Tweet intends to become a comprehensive communication hub, encompassing newsletters, chats, and potentially other features.

Supreme Court Ruling on Hacking Law

A court case has established boundaries for the Computer Fraud and Abuse Act (CFAA). According to TechCrunch, the U.S. Supreme Court determined that a police officer’s use of a license plate database for personal gain did not constitute a violation of U.S. hacking laws.

This landmark decision provides clarity in a long-standing case concerning the controversial CFAA.

Positive legal news is a welcome development within the tech industry.

Blackstone's Acquisition of IDG

Blackstone is proceeding with the purchase of IDG, continuing the trend of private equity investment in media companies.

This acquisition includes prominent publications such as CIO, Computerworld, InfoWorld, Macworld, Network World, PCWorld, and Tech Hive, as well as IDC itself.