India Blocks Mastercard: New Customer Onboarding Halted

Daily Crunch: July 14, 2021

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India's Tech Regulatory Landscape

Greetings, and welcome to Daily Crunch for July 14, 2021. Today’s newsletter is comprehensive, so let’s address a key issue immediately. We have frequently reported on India’s evolving technology regulatory environment.

The reason for this consistent coverage is the exceptionally high level of activity within the Indian startup ecosystem. The approach taken by the Indian government in managing this growth will be pivotal for numerous entrepreneurs, investors, and employees.

Mastercard's Restrictions in India

Recently, Mastercard has been prevented from adding new users. This action stems from “noncompliance with local data storage rules,” as reported by our team.

It’s worth noting that data regulations are also a central aspect of the shifting regulatory framework impacting Chinese startups. This situation warrants continued observation.

— Alex

The Leading Three Tech Stories

The three most prominent tech news items today all center around social media platforms. These expansive companies are integral to our daily routines, serving as spaces where we connect and share. We'll begin with an update regarding Facebook.

Facebook and the FTC

Similar to Amazon, Facebook has expressed reservations concerning the newly appointed head of U.S. antitrust regulation. Lina Khan’s leadership of the Federal Trade Commission (FTC) is generating considerable discussion within the tech industry.

Amazon previously requested that Ms. Khan abstain from overseeing its regulatory affairs. Facebook is now voicing comparable concerns. Essentially, these tech behemoths believe her previous critiques of their operational methods present a conflict of interest.

This stance is both amusing and significant. The idea that a regulator possessing informed opinions about regulation should be considered unsuitable is counterintuitive.

Facebook's Investment in Creators

Remaining within the Facebook ecosystem, the company has unveiled a $1 billion fund. This substantial sum will be distributed to digital content creators whose work is featured on its platforms.

The magnitude of this investment is particularly noteworthy. Facebook is prepared to financially incentivize the type of engagement that TikTok has organically cultivated.

Twitter Discontinues Fleets

The final update in social media news involves Twitter’s decision to eliminate Fleets, its ephemeral stories feature.

First, review the detailed report on TechCrunch. Then, consider this insightful tweet and its remarkably apt subheadline.

In all honesty, will Fleets be missed? The consensus suggests not.

Startups and Venture Capital Updates

Today’s overview of the startup landscape begins with analyses of the broader market dynamics. Following this, a selection of recent funding rounds will be detailed.

Valuation Strategies for High-Growth Startups

A recent article explores the viability of current startup valuations. It synthesizes discussions with both investors and founders regarding the potential outcomes of today’s elevated pricing, considering scenarios for both venture capitalists and company leadership.

Significant Investment in Battery Technology

LG Chem is committing substantial resources to advancements in battery technology. The company plans to invest $5.2 billion over the next four years, averaging over $1 billion annually. This demonstrates the intense activity and opportunity within this sector.

Continued Crypto Investment by a16z

a16z continues to invest in the cryptocurrency space. The firm recently led a $9 million Series A funding round for Phantom, described as a crypto wallet startup. This follows the replenishment of their venture capital funds specifically designated for crypto-related ventures.

Funding for Virtual Concert Experiences

The popularity of virtual concerts, which gained traction during the pandemic, is attracting investment. FlyMachine has secured funding to recreate the atmosphere of live performances within a livestreamed environment. This aims to deliver engaging virtual concert experiences.

Cybersecurity Remains a Priority for Investors

Investment in cybersecurity continues to be robust. Cybereason, a company specializing in extended detection and response (XDR), has raised $275 million in a Series F funding round.

Midwest Startup Achieves Unicorn Status

M1 Finance, a startup previously covered by TechCrunch, has reached unicorn status. The company’s finance superapp has proven highly appealing to users, resulting in $150 million in new funding. This investment comes just four months after a $75 million raise, bringing total assets under management to $4.5 billion.

Investment in Plant-Based Meat Alternatives

The environmental impact of traditional animal agriculture is driving investment in alternative protein sources. Next Gen Foods has secured a $20 million seed extension to further develop its plant-based chicken alternative.

Successfully Managing Employee Relations During an Acquisition

As global recovery from the COVID-19 pandemic gains momentum with increased vaccination rates, distinct patterns are emerging in the business landscape.

Mergers and acquisitions experienced a surge in the first six months of 2021, climbing over 150% year-over-year to reach $2.4 trillion. Simultaneously, numerous employee surveys indicate a strong desire among a significant portion of the workforce to explore new job opportunities.

For startups considering an exit strategy, the potential for substantial financial gain may prove insufficient to hold onto employees who are experiencing exhaustion or harbor feelings of discontent.

A lack of extensive managerial background is common among many founders. The inherent ambiguity surrounding an acquisition presents a challenging environment for gaining practical management skills.

Therefore, the following communication approaches are recommended to assist in preserving the strength of your team during this critical transition.

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

Big Tech Inc. – Further Developments

Beyond the initial coverage of significant tech news, additional updates deserve attention.

Kindle Vella: A New Era for Serialized Fiction

Amazon is innovating the reading experience with a new Kindle service dedicated to serialized fiction. This platform, known as Kindle Vella, is now accessible to users.

The introduction of Kindle Vella provides authors with expanded creative opportunities, a development that is highly encouraging.

Twilio Live: Integrating Real-Time Communication

Twilio, a leader in API-driven services, has unveiled Twilio Live.

This new service is designed to facilitate the integration of live audio and video capabilities directly into applications.

While comprehensive details are currently limited, the emergence of startups in this space suggests a competitive landscape, making the market’s evolution particularly noteworthy.

Windows 365: Cloud-Based Windows Access

Microsoft has quietly launched Windows 365, a service distinct from Microsoft 365 (formerly Office 365).

Windows 365 enables organizations to stream the Windows operating system to a variety of devices.

According to reports, Windows 365 represents a logical progression from existing remote desktop solutions, yet remains a compelling advancement in cloud computing.

• Key Takeaway: The service allows for remote access to a full Windows environment.

Growth Marketing Insights from TechCrunch Experts

Did you manage to stay current with our growth marketing coverage from the previous week? If not, the article can be found here.

We continually seek recommendations for exceptional growth marketers. Please submit your suggestions through this survey.

A testimonial received from one of our sources is presented below.

Marketer: Mitch Causey, Demandwell

Recommended by: Drew Beechler, High Alpha

Testimonial: “Mitch Causey and the team at Demandwell consistently demonstrate a high level of acumen in content, SEO, and broader digital marketing strategies. Their performance consistently validates their expertise.

Their methodology, coupled with their unique software and deep understanding of organic search and content creation, positions them as leaders in establishing organic search as a reliable and scalable growth engine for demand generation.

The effectiveness of Mitch and the Demandwell approach was such that, following a two-year client relationship and numerous portfolio recommendations, High Alpha ultimately invested in Demandwell.

This investment aimed to transform their proven playbook into a widely accessible software platform.”