Parallel Systems Raises $49.55M Series A

Daily Crunch: January 19, 2022

A daily digest of the most significant and impactful stories from TechCrunch is delivered to inboxes each day at 3 p.m. PST. You can subscribe to this service here.

Greetings, and welcome to today’s Daily Crunch for January 19, 2022. We present a comprehensive news compilation covering several key areas.

Key Stories of the Day

Today’s coverage includes developments in China’s evolving venture capital environment. We also examine the ongoing importance of robust passwords for security.

The rise of no-code startups is another focal point. Furthermore, we address the persistent disparity in funding received by female founders compared to their male counterparts.

A Closer Look at the Topics

China’s Venture Capital Shift: The investment landscape in China is undergoing notable changes, impacting startups and investors alike.
Password Security: Despite advancements in authentication methods, strong passwords remain a critical component of online security.
No-Code Movement: A growing number of startups are empowering users to build applications without traditional coding skills.
Funding Disparity: Women continue to face challenges in securing venture capital funding, receiving significantly less investment than men.

These topics represent some of the most pressing issues and exciting trends shaping the technology industry currently.

We hope you find this summary informative. – Alex

TechCrunch's Top 3 Updates

Recent developments indicate a shift in China's venture capital environment. ByteDance, a major Chinese technology company, has reportedly disbanded its strategic investment division.

This action follows reports suggesting the Chinese government may soon mandate pre-approval for investments made by significant internet companies. Should this regulation be implemented, the ByteDance situation could signal a broader trend.

Such a trend might lead to a decrease in the overall capital accessible to startups operating within the country.

Funding Disparity for Female Founders

Data reveals a continuing imbalance in venture capital funding. Less than 2% of all VC funding in the previous year was allocated to teams comprised solely of women.

While the total dollar amount of funding increased alongside the expansion of the venture capital market, the proportion remains notably low. TechCrunch has investigated the underlying causes of this disparity.

A Potential Slowdown in VC Investment

The surge in venture capital activity observed globally last year, and continuing presently, stands in stark contrast to the declining valuations of publicly traded technology companies.

This growing disconnect between public market anxieties and private investor optimism prompts consideration of when venture capitalists might begin to moderate their investment pace.

The question remains: how long can this divergence between public and private valuations be sustained?

Startups and Venture Capital Updates

A significant development in the startup world today is 1Password’s successful fundraising, securing $620 million in a round that values the company at $6.8 billion. Iconiq Growth spearheaded this investment, with participation from numerous prominent venture capital firms.

Technically categorized as a Series C, this funding follows substantial previous rounds of $200 million in Series A and $100 million in Series B. It’s unusual for companies to delay raising capital and then secure a large investment, but such occurrences are not unprecedented. A similar event unfolded today with Dovetail, which, having conserved a significant portion of its initial funding, announced a $63 million Series A raise.

1Password specializes in password management solutions, while Dovetail develops software tailored for researchers within corporate environments.

Let’s now shift our focus to recent developments within the venture capital fund landscape:

Fintech Investment Trends: The venture capital sector is currently experiencing a surge in investment activity, characterized by record-breaking figures and substantial funding rounds. Fintech, in particular, appears to be a leading segment driving this trend.
Viola Ventures Fund Closure: Viola Ventures has successfully closed a $250 million fund, exceeding its target. This achievement underscores the robust growth of the Israeli tech industry, bringing the firm’s total assets under management to $1.25 billion.
Emerging Crypto Funds: Despite the prevalence of billion-dollar crypto funds, smaller capital pools are also emerging. Inflection recently raised a blockchain-focused fund of nearly $41 million, and POAP, a proof of attendance protocol, secured $10 million in funding. Additionally, a venture involving Tom Brady and NFTs attracted $170 million.

Now, let's examine the latest capital infusions into a diverse range of startups:

Parallel Systems Secures $49.55M: Founded by former SpaceX engineers, Parallel Systems aims to revolutionize rail transport with autonomous, battery-electric vehicles. The company recently emerged from stealth mode and has secured significant funding to pursue its decarbonization and autonomy goals.
Lattice Raises $175M at $3B Valuation: This Series F round will fuel the expansion of Lattice’s people-management platform. The ongoing pandemic and the evolving work environment have created a strong demand for solutions like Lattice’s.
Carry1st Receives $20M Investment: Carry1st, a mobile games publisher based in South Africa, has secured eight-figure funding. This investment highlights the continued growth of fundraising activity in Africa and marks a16z’s inaugural investment in a startup headquartered on the continent.
Filmhub Simplifies Film Distribution: Filmhub provides a platform akin to DistroKid for filmmakers, facilitating the distribution of their work across over 100 streaming channels. The company recently raised $6.8 million to expand its services.
Softr Gains $13.5M to Enhance No-Code Development: Softr enables users to build applications from data sources, initially Airtable, with plans to expand compatibility. The company secured $13.5 million to further develop its platform and create a marketplace for templates and extensions.

Finally, Revolut is expanding its services to include stock trading in the United States, while the cryptocurrency sector in the U.K. may face increased regulatory scrutiny.

The Financial Rationale Behind Microsoft’s Activision Blizzard Acquisition

The concept of a "bet" may not accurately reflect the calculated nature of Microsoft’s intended acquisition of Activision Blizzard, given the inherent risks associated with gambling.

With Microsoft’s market capitalization exceeding $2 trillion, the $68 billion price tag for the gaming giant – creator of franchises like Call of Duty, Guitar Hero, and Candy Crush – represents a relatively small investment.

Strategic Implications of the Deal

Aaron Levie, CEO of Box, suggests that this acquisition firmly establishes Microsoft’s position in the burgeoning field of AR/VR gaming.

Levie posits that Activision Blizzard will be instrumental in fostering a positive feedback loop of content and technology, attracting a larger user base to the future of immersive computing, applicable to both consumer and enterprise applications.

“Should one anticipate that virtual reality and immersive computing will define the future – encompassing both consumer and professional applications – Activision empowers Microsoft to cultivate a synergistic ecosystem of content and technology, thereby expanding user engagement with this evolving landscape.”

(Access to exclusive insights and resources for founders and startup teams is available through TechCrunch+. Sign up here.)

Big Tech Inc.

Recent developments highlight the ongoing efforts of major technology companies to navigate complex regulatory landscapes and innovate within their existing platforms.

Google and Trans-Atlantic Data Transfers

Google is actively seeking streamlined processes for data transmission between Europe and the United States. This push comes amidst scrutiny of GDPR regulations, particularly as they pertain to the use of Google Analytics.

The company is also responding to ongoing antitrust rulings. Simultaneously, Google is increasing its engagement through public blogging and direct lobbying initiatives.

Instagram Creator Subscriptions

Instagram, a subsidiary of Meta, is introducing subscription options for content creators. This move, following the platform’s development of the necessary infrastructure, was largely anticipated.

The implementation of creator subscriptions represents a significant step in empowering content producers on the platform. It allows them to monetize their audiences directly.

These developments demonstrate the dynamic nature of the tech industry. Companies are constantly adapting to both regulatory pressures and evolving user expectations.

TechCrunch Seeks Growth Marketing Professionals

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

Request for Recommendations

The publication invites individuals to suggest growth marketers who have demonstrated success. Clients are encouraged to participate in a survey detailing their positive experiences.

This survey aims to gather insights into the qualities that make a growth marketer exceptional. Feedback from clients will help TechCrunch identify leading professionals in the field.

The focus is on marketers with proven abilities in SEO.
Social media proficiency is a key requirement.
Strong content writing skills are also essential.

Growth marketers are invited to share the survey link with their clientele. TechCrunch is eager to understand the reasons behind client satisfaction and successful collaborations.

Participation in this initiative will provide valuable recognition for growth marketers and assist TechCrunch in curating a list of top-tier professionals.