Databricks Valuation: Reaches $38B with $1.6B Series H Funding

Daily Crunch: August 31, 2021

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Today's Highlights

Greetings, and welcome to Daily Crunch for August 31, 2021. The TechCrunch team was actively reporting on the initial day of Y Combinator’s Demo Day today.

Consequently, anticipate a wealth of articles appearing on the website following the delivery of this newsletter. A comprehensive recap will be featured in tomorrow’s edition, with a preliminary overview provided below.

Disrupt Updates

Regarding Disrupt, TechCrunch is facilitating a unique collaboration between an AI investor and a science-fiction writer.

Numerous resources will be available for startups that are presently seeking outside funding. — Alex

Y Combinator’s Demo Day was a major focus for the TechCrunch team.

Expect extensive coverage of the event in the coming days.

The collaboration at Disrupt aims to provide valuable insights for fundraising startups.

TechCrunch's Leading Three Stories

Databricks Achieves $38 Billion Valuation: The data and artificial intelligence company, Databricks, has officially announced a $1.6 billion funding round. This investment results in a company valuation of $38 billion. TechCrunch interviewed the CEO to understand the allocation of these funds and further analyzed the company’s revenue performance.

This late-stage funding environment has seen considerable activity, but the scale of Databricks’ recent round is particularly noteworthy even within current venture capital trends.

Increased Representation from African Startups

Record Number of African Startups in YC Batch: A preliminary review of the current Y Combinator summer batch reveals a significant increase in the number of participating startups originating from Africa. This observation coincides with the ongoing Demo Day events.

The growing participation reflects the dynamism observed within the African startup ecosystem throughout the current year.

Apna's Potential Unicorn Status

Apna Poised to Become India’s Next Unicorn: Apna, a company dedicated to providing upskilling opportunities for Indian consumers, is on track to achieve unicorn status. A funding round led by Tiger Global, potentially valued at $100 million, could propel the company’s valuation beyond $1 billion.

The Indian edtech sector continues to be a prominent and compelling narrative within the broader startup landscape in recent years, and Apna is a key player in this growth.

Startups and Venture Capital Updates

As August draws to a close, the traditionally quieter summer period for funding activity is likely over. While we didn't observe a significant decrease in deal flow, an increase in activity is anticipated in the coming weeks.

Here's a summary of the funding rounds reported today:

Amazon Merchant Roll-Up Acquisitions

Beyond investments in Indian edtech, a prominent trend this year has been the funding of startups focused on acquiring smaller e-commerce businesses, particularly those operating on Amazon. Heroes, a U.K.-based company, recently secured a substantial investment, adding several hundred million dollars to its capital reserves for this purpose.

Whoop Secures $200M Funding

Whoop, a fitness wearable gaining recognition, has successfully raised $200 million. This brings the company’s total funding to over $400 million and establishes a valuation of $3.6 billion.

Its subscription-based model, combining hardware with a recurring software fee, differentiates it from typical hardware companies – drawing comparisons to Peloton.

The Rise of Synthetic Coffee

Compound Foods, led by founder and CEO Maricel Saenz, is pioneering the development and sale of coffee produced without coffee beans. This initiative is driven by the increasing challenges posed by climate change to coffee bean cultivation and the environmental impact of traditional coffee farming.

The prospect of synthesized coffee is intriguing, though its success will depend on replicating the flavor and experience of traditionally brewed coffee.

Borzo Expands On-Demand Services

Delivery service Dostavista is undergoing a rebranding to Borzo, consolidating its operations across multiple countries under a unified brand identity. Founded in 2012, the company currently serves a customer base of 2 million.

Quip's Continued Growth and Funding

Quip, initially known for its innovative toothbrush, achieved profitability last year and has expanded its product offerings to include a range of oral hygiene products and invisible teeth aligners. The company has now secured $100 million in new capital.

Peak Aims to Democratize AI Application

Peak, a company based in Manchester, England, has raised $75 million to assist non-technical companies in developing and implementing AI applications. The company focuses on enabling businesses lacking internal AI expertise to leverage the benefits of this technology.

The investment was led by SoftBank Vision Fund 2 and will be used to expand the company’s team and enter new markets.

Establishing a Global Supply Chain for Your Startup: 6 Key Tips

Launching a hardware startup is now more accessible than ever. A successful crowdfunding effort often demonstrates the capability to identify and collaborate with overseas manufacturers capable of producing your product according to your specifications.

However, international supply chains are inherently vulnerable. The unexpected grounding of a container vessel in the Suez Canal for six days serves as a stark reminder of this fragility.

Furthermore, the COVID-19 pandemic has dramatically increased shipping costs; importers are currently facing rates of nearly $18,000 for containers originating from China, a significant increase from the $3,300 cost just a year prior.

Jeff Morin, CEO of Liteboxer, leverages his extensive experience in building supply chains across three continents to offer guidance for hardware founders, originally published in a guide for Extra Crunch.

Morin emphasizes that, “With a realistic understanding of the difficulties involved and a diligent, proactive approach, achieving optimal results is within reach.”

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

Big Tech Inc.

TikTok is developing tools to connect influencers with brands more effectively. This initiative stems from the introduction of TikTok’s “Creator Marketplace API,” which grants influencer marketing firms access to valuable first-party data.

The move is particularly relevant considering increasing concerns about inauthentic influencer activity. TikTok’s goal is to ensure its top creators are financially incentivized to remain active on the platform.

Similar functionalities are anticipated to emerge on other social media platforms in the future.

Windows 11 Release

The official launch date for Windows 11 is October 5th. Enthusiasts, including those who also appreciate macOS, are eager to experience the newest version of the operating system.

A common concern among potential users is whether their existing CPU meets the minimum system requirements. However, the release is imminent, resolving the anticipation for many.

Spotify's Collaborative Playlists

Spotify has introduced a new feature allowing users to create collaborative playlists with friends. This enables the blending of individual musical preferences.

The result is often a playlist that doesn't fully satisfy anyone's taste, offering a unique opportunity for playful interaction and musical debate among friends.

This feature is designed for music lovers who enjoy sharing – and playfully clashing – their tastes with others.

TechCrunch Experts: Growth Marketing

TechCrunch Disrupt is fast approaching, occurring in under a month. We are pleased to announce a giveaway of one complimentary ticket through the Experts survey.

The Disrupt schedule is now available for review. Continue reading to discover the specifics of the ticket giveaway.

Giveaway Details

• A prior survey submission already qualifies as an entry for the Disrupt ticket. All previously received recommendations will be considered.
• The subsequent 100 survey responses submitted will also be included in the drawing.
• Interested in submitting multiple recommendations to improve your odds? While we appreciate the eagerness, we request that only one recommendation be provided per marketing professional you’ve collaborated with.
• Unsure of what to include in your recommendation? Begin by detailing the individual’s qualities, their contributions to your organization, and the impact of their work on your business.
• All submissions are reviewed manually by our team. Therefore, please refrain from duplicating the same response repeatedly.
• Questions regarding the giveaway can be directed to us via email at ec_editors@techcrunch.com.

We carefully examine each entry to ensure authenticity and quality. Your thoughtful feedback is greatly valued.

Growth marketing professionals are key to business success, and we aim to recognize their contributions through this initiative.