Equinix Acquires MainOne for $320M - Daily Crunch

Daily Crunch: December 7, 2021

A daily summary of TechCrunch’s most significant and impactful stories can be delivered directly to your inbox each day at 3 p.m. PST. Simply subscribe here to receive this update.

Greetings, and welcome to the Daily Crunch for December 7, 2021. The year is drawing to a close, marking a period of substantial transformation within the worldwide startup ecosystem.

A Year of Change and Growth

One particularly noteworthy trend has been the increasing volume of venture capital directed towards startups based in Africa. Previously overlooked by many international investors, companies originating from the African continent are experiencing a remarkably successful year.

This growth isn't merely anecdotal; substantial data supports this assertion. The increasing frequency of nine-figure investment deals secured by African startups demonstrates a market that demands the attention of all technologists.

Further details regarding the MainOne-Equinix agreement can be found here.

—Alex

TechCrunch's Top 3 Updates

Here's a rundown of the most significant tech news as reported by TechCrunch.

Twitter Acquires Quill to Enhance Direct Messaging

Twitter has completed the acquisition of Quill, a business messaging service. The intention is to integrate Quill’s team into Twitter’s efforts to improve its direct messaging capabilities.

While Quill as a standalone product will cease to exist, the move acknowledges the current limitations of Twitter’s private messaging features. Competing with established platforms like Slack presents a significant challenge.

Meta Faces Departures and Introduces Parental Controls

Meta, the parent company of Facebook, has been in the news this week due to several key personnel changes. The head of Messenger is among those departing, contributing to a growing trend of exits within the organization.

In anticipation of an upcoming congressional hearing, Instagram is implementing new parental controls. These controls are designed to provide greater oversight and safety for younger users.

Discord Explores Paid Membership Options for Creators

Discord is actively developing a new revenue stream for content creators. The platform is introducing paid memberships, allowing creators to offer exclusive content to subscribers.

This initiative aims to capitalize on the thriving creator economy and the strong communities that have formed within Discord. Creators will be able to monetize their communities through subscriber-only access.

The new feature will provide a “new way for creators to make money” by offering exclusive content to paying members, according to TechCrunch’s reporting.

Startups and Venture Capital Updates

As the year nears its conclusion, the initial public offering landscape remains active. HashiCorp is preparing for its market debut, with Nubank following closely behind. Additionally, Samsara, an Internet of Things (IoT) company, is poised to potentially achieve a valuation of over $10 billion in its forthcoming IPO.

Recent Funding Rounds and Startup News

• Therify Aims to Expand Therapy Accessibility: Locating a suitable therapist can be challenging, particularly for cisgender men, as personal experience confirms. However, the difficulty is amplified for individuals identifying as people of color or those with disabilities, where representation among therapists is often limited. Therify recently secured $1.3 million in funding to address this critical issue.
• Jupe’s Mission: Addressing Global Shelter Needs: Jupe is focused on providing housing solutions for the estimated 1.5 billion people worldwide lacking adequate shelter. The company has just raised $9.5 million to further its development and deployment efforts.
• Torq Boosts Portland’s Tech Presence: Formerly known as StackPulse, Torq is developing a no-code platform designed to streamline security workflows. This innovation has resulted in a substantial $50 million Series B funding round. This trend reflects a shift where pre-IPO funding rounds of the past are now becoming typical early-stage investments.
• SendOwl Empowers Digital Content Creators: SendOwl provides a platform for creators and businesses to effectively sell digital products, including e-books, podcasts, and online courses. Despite competition in this space, a significant market exists for such content. The company recently completed a $4.5 million seed round led by Defy.vc and Stripe.
• MAJORITY Targets the Immigrant Community with Neobank Services: Following recent discussions about neobanks focused on small and medium-sized businesses (SMBs), MAJORITY is concentrating on the needs of immigrants. The company has raised a $27 million Series A round, bringing its total funding to $46 million. A key feature is the ability for users to sign up without a Social Security number.
• Circle: Building and Managing Online Communities: Beyond being the name of a book or a cryptocurrency company pursuing a public listing via a SPAC, Circle is a startup dedicated to helping creators establish and manage their online communities. While the concept is promising, a rebranding might be beneficial to avoid confusion. Circle recently raised funds at a $200 million valuation.
• AgentSync Reaches Unicorn Status: AgentSync has achieved unicorn status with a recent $75 million funding round, resulting in a valuation of $1.2 billion. Operating in the insurtech API infrastructure sector, AgentSync demonstrates the potential for substantial investment in connecting fragmented data within traditional industries.
• The EVERY Co. Pioneers Fermented Protein Alternatives: The EVERY Co. (formerly Clara Foods) is working to develop and commercialize fermented animal protein alternatives. The company has secured a significant $175 million round to advance its vision.
• Pento Secures Funding for Payment Automation: Pento, a U.K.-based payment automation startup, has raised $35 million in a recent funding round led by Tiger Global. Automating payroll processes is a common pain point for small businesses, and Pento aims to address this challenge despite existing competition.
• TechCrunch Seeks Startup Pitches at CES: TechCrunch is inviting startups to showcase their innovations at the upcoming Consumer Electronics Show (CES).

Image Credits: TechCrunch

AWS re:Invent 2021: A Focus on Consolidation Rather Than Breakthroughs

Image Credits: Amazon

Amazon consistently generates headlines, given its position as the world’s third-largest corporation and the ambitious space exploration plans of its founder.

However, the recent re:Invent conference, AWS’s yearly gathering for its customer base, presented a different narrative.

According to enterprise reporter Ron Miller, the event appeared to prioritize completing existing projects and addressing gaps within the product roadmap.

The return to an in-person format in Las Vegas, following the virtual event of 2020, featured presentations from Adam Selipsky, the new CEO, CTO Werner Vogels, and other key figures.

Despite these updates, “no single announcement from re:Invent 2021 truly stood out as exceptionally innovative.”

Several key updates were presented, including the unveiling of Gravitron 3, Amazon’s newest processor based on the Arm architecture.

Additionally, AWS introduced re:Post, a fully managed question and answer platform designed to succeed the older AWS forums.

Amplify Study, a service enabling developers to create cloud-connected applications with minimal coding, was also launched.

Interestingly, “this re:Invent marked the first instance in recent years where AWS did not introduce a new database offering,” noted Holger Mueller, an analyst from Constellation Research.

Ron Miller’s overview of the week’s announcements – and what was absent – suggests a company undergoing a shift in strategy.

He proposes that “Amazon may be evolving towards a model more akin to Apple’s approach to product development.”

• Gravitron 3: AWS’s latest Arm-based processor.
• re:Post: A managed Q&A service replacing AWS forums.
• Amplify Study: A no-code/low-code service for cloud application development.

These updates demonstrate AWS’s continued commitment to enhancing its existing services and providing developers with more tools.

The absence of a new database announcement, however, signals a potential change in focus for the cloud provider.

Big Tech Inc.

Cybersecurity Concerns:

• Microsoft's Action Against Chinese Hackers: According to TechCrunch, Microsoft, the software company headquartered in Redmond, has successfully taken control of multiple websites. These sites were utilized by a hacking group supported by the Chinese government to target organizations across 29 nations, including the United States. This intervention is a positive development, yet underscores the ongoing need for such measures.
• Google's Disruption of a Russian Botnet: While comprehensive control over widespread cybercrime remains a future goal, advancements are being made. Google, the U.S.-based software corporation, has recently dismantled a Russian botnet characterized by its “technical sophistication,” as described by the company. This action is beneficial, but highlights the persistent threat landscape.

Updates from Twitter:

• Recent news from Twitter included the introduction of "Quill," alongside the rollout of a new feature. All iOS and Android users can now access and listen to recordings of Spaces.
• Furthermore, Twitter is refining its reporting process for tweets. Users will no longer be required to explicitly identify the specific Twitter policy they believe a tweet violates when submitting a report.

Other Notable Developments:

• App Store Market Size: The scale of the app store market is substantial. Projections indicate 143.6 billion first-time app installs this year.
• Consumer spending on apps is anticipated to reach $133 billion. This explains Apple’s reluctance to relax its control over app-related revenue streams, as they represent a significant income source.
• Netflix's Expansion into Gaming: Netflix continues to invest in its gaming initiative. The video streaming service has expanded its gaming library with the addition of three new titles.
• An alternative strategy for Netflix might involve sponsoring a professional League of Legends team, though the company is currently pursuing its own gaming path.
• Snap's AR and Spectacles Focus: Snap, the parent company of Snapchat, recently hosted an event called Lens Fest.
• The event centered around augmented reality (AR) technologies and Spectacles. Detailed coverage of the event is available from Lucas Matney.

TechCrunch Seeks Expert Recommendations

TechCrunch is currently soliciting recommendations for skilled software consulting firms.

The focus is on consultants demonstrating proficiency in areas like UI/UX design, website development, and mobile development.

Request for Client Feedback

If you are a software consultant, please share this survey with your clientele.

TechCrunch is interested in gathering insights into client satisfaction and understanding the reasons behind positive experiences with their consulting partners.

• The survey aims to identify consultants who consistently deliver exceptional value.
• Client testimonials will be used to highlight top-performing firms.
• Feedback will cover aspects such as project execution and communication.

Participation from clients is highly encouraged to help TechCrunch compile a comprehensive list of recommended software consultants.