Discord CEO Dismisses Crypto Integration Plans - Daily Crunch

Daily Crunch: November 11, 2021

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Today's Highlights

Greetings and welcome to Daily Crunch for November 11, 2021. Interestingly, a recent announcement of a company choosing to abstain from entering the cryptocurrency space was surprisingly well-received. This represents a departure from the prevailing trend.

This is a notable instance of a company defying current market narratives. The reaction highlights a potential shift in investor sentiment.

TechCrunch News

Peter Beck, the CEO of Rocket Lab, will be a featured speaker at TC Sessions: Space 2021. This event is generating considerable anticipation.

The participation of Peter Beck is expected to be a key draw for attendees. His insights into the space industry are highly valued.

— Alex

TechCrunch's Leading Three Stories

Here's a rundown of the top three tech news items as reported by TechCrunch.

Discord Reconsiders NFT Integration

Discord initially showcased NFTs within its platform via a tweet featuring a screenshot. However, the company has since announced that it currently has no plans to implement this feature.

This decision comes amidst considerable opposition from the Discord community regarding the integration of cryptocurrency-related assets.

Increased Risk for Public Investors

The current technological expansion differs significantly from the exuberance seen during the dot-com bubble.

Previously, companies with high valuations and limited revenue were largely confined to private markets. Now, however, greater risk is being transferred to the general investing public, a development that warrants attention.

GoTo Secures $1.3 Billion Pre-IPO Funding

GoTo, formed through the merger of Indonesian ride-hailing service Gojek and e-commerce platform Tokopedia, has successfully raised $1.3 billion in a pre-IPO funding round.

Following this latest investment, the company’s valuation is estimated to be approximately $30 billion.

The anticipated IPO of GoTo is expected to have a substantial global impact when it eventually occurs.

Startups and Venture Capital Updates

Let's begin with an overview of recent activity in the startup world, focusing on SoftBank's renewed investment strategy. Following the conclusion of its first Vision Fund – with ongoing result assessments – it appeared that firms like Tiger Global had assumed a leading role in venture capital.

However, SoftBank has demonstrated continued strength, investing $3 billion in India this year alone, with potential for further investment next year. This substantial commitment highlights the attractiveness of Indian startups and reaffirms SoftBank’s position as a major player.

Notable Startup News

• Sivo: Debt Access via API: Sivo is developing a platform that provides startups with access to debt financing through an Application Programming Interface (API). This mirrors Stripe’s successful model of offering payment processing as a service via API, and a suite of other financial technology solutions. Sivo aims to enable startups to offer debt products without needing to utilize their own capital reserves.
• Alt: Growth in Alternative Assets: The continued interest in alternative asset investing is evident in Alt’s recent $75 million funding round. The platform facilitates the buying and selling of rare sports cards, which can be considered physical, or "In Real Life" (IRL), Non-Fungible Tokens (NFTs).
• Instacart: Faster Grocery Delivery: Grocery delivery service Instacart is introducing lower-fee, next-day delivery options and establishing partnerships with dollar store chains to expand its product offerings. Competitors like DoorDash and Uber Eats are also broadening their delivery services, indicating a trend towards comprehensive, rapid delivery.
• Ro: Expanding into Sperm Storage: Ro, the parent company of Roman, a well-known telehealth provider, is reportedly in discussions to acquire Dadi, a sperm storage company. This potential expansion into sperm management aligns with Ro’s existing capabilities in facilitating reproductive health services.
• Houm: Streamlining Home Transactions: Chilean proptech startup Houm has secured $35 million in Series A funding to simplify the process of buying and selling homes. The company addresses a common pain point – the often-complex and frustrating nature of real estate transactions – in a market where such solutions are in demand.
• Helium Health & Meddy: M&A in Emerging Markets: Helium Health, a Nigeria-based company, is acquiring Meddy, a doctor-booking platform based in the UAE. While financial details remain undisclosed, this merger signifies the increasing maturity of startup ecosystems in Africa and the Middle East.
• Hive: Fulfillment Solutions for DTC Brands: Berlin-based Hive, which provides software for Direct-to-Consumer (DTC) brands to manage their fulfillment operations, has raised $34 million. This investment builds upon a prior $10 million funding round.
• Brivo: Going Public via SPAC: Smart building technology company Brivo plans to become publicly traded through a Special Purpose Acquisition Company (SPAC), valuing the company at $800 million.

Harnessing Zero-Party Data for Marketing Personalization and Accelerated Growth

Recent privacy regulations enacted in areas like Europe and California are prompting a re-evaluation of standard online marketing techniques.

Rather than relying on covert data collection through cookies and tracking pixels, a shift towards directly requesting pertinent information from consumers is emerging.

This approach allows for the personalization of the customer journey. Ben Parr, president and co-founder of Octane AI, explains this concept as information a customer would willingly share with a sales associate.

He defines this direct input as zero-party data.

Parr’s comprehensive analysis, complete with illustrative examples, details various strategies for gathering zero-party data.

These methods are designed to significantly improve conversion rates and foster stronger customer engagement.

(Access to TechCrunch+ is available through our membership program, designed to empower founders and startup teams. Registration can be completed here.)

Understanding Zero-Party Data

Zero-party data is intentionally and proactively shared by customers with a brand. It differs from first-party data, which is collected based on customer behavior.

Examples of zero-party data include preference centers, surveys, and registration forms. Collecting this data builds trust and demonstrates respect for customer privacy.

Benefits of Utilizing Zero-Party Data

• Enhanced Personalization: Tailor marketing messages and product recommendations to individual customer needs.
• Improved Customer Experience: Provide more relevant and valuable interactions.
• Increased Conversion Rates: Deliver targeted offers that resonate with specific customer segments.
• Stronger Customer Relationships: Foster loyalty through personalized engagement.

By prioritizing direct customer input, businesses can create more effective and ethical marketing strategies.

This approach not only complies with evolving privacy standards but also unlocks new opportunities for growth and innovation.

Big Tech Inc.

Google is reportedly revitalizing Google Labs, an internal division focused on augmented reality (AR) and virtual reality (VR) technologies.

This move signifies a renewed interest in the metaverse space, a trend embraced by numerous major corporations.

However, questions arise regarding the overlap with Alphabet’s existing “Other Bets” division, which already serves as a hub for experimental projects.

Social Media Competition

Similar to YouTube, Instagram is actively incentivizing users to adopt its short-form video feature, Reels.

Instagram is offering bonuses to creators to encourage increased usage of Reels, mirroring YouTube’s strategy of financially supporting content creators on its short-form platform.

Twitter Updates

A positive development for Twitter users: image previews on the web are no longer automatically cropped.

This change ensures that full images are displayed when shared on the platform, enhancing the user experience.

Electric Vehicle News

In the electric vehicle sector, Foxconn has acquired Lordstown Motor’s manufacturing facility for approximately $250 million.

The intention is to assist Lordstown in the production of its electric vehicles (EVs), though skepticism remains regarding the feasibility of this collaboration.

Confirmation of successful EV production will be required before fully acknowledging the partnership’s potential.

TechCrunch Seeks Growth Marketing Professionals

TechCrunch is currently soliciting recommendations for skilled growth marketers. Expertise in areas like SEO, social media marketing, and content creation is highly valued.

Growth marketers are encouraged to share a survey with their clients. We aim to gather insights into positive client experiences and the reasons behind them.

Understanding TechCrunch+'s Data-Driven Approach

Those interested in the methodology behind these surveys can explore an article on TechCrunch+. Ben Parr’s piece, “Collect and leverage zero-party data to personalize marketing and drive growth,” details the strategy.

A live question-and-answer session with the author is scheduled. Ben Parr will be available for a Twitter Spaces event hosted by the TechCrunch account on Wednesday, November 17th.

Event Details

The live chat will commence at 3 p.m. PST/6 p.m. EST. Walter Thompson will moderate the discussion with Ben Parr, providing an opportunity for direct engagement.

This event offers a chance to learn more about utilizing zero-party data for enhanced marketing personalization and growth initiatives.