Amazon Fined $887M by European Regulators - Daily Crunch

Daily Crunch: July 30, 2021

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Greetings, and a warm welcome to Daily Crunch for July 30, 2021. This past week has been exceptionally busy. It featured numerous initial public offerings, earnings reports, and updates concerning startups and newly established venture capital funds.

Calendly CEO at Disrupt

Before diving into today’s news, we are pleased to announce that Tope Awotona, CEO of Calendly, will be attending Disrupt. This event represents a valuable opportunity to gain insights from a leading figure in the scheduling technology space.

Furthermore, today marks the final opportunity to secure early-bird passes, which are offered at a reduced price. We hope to see you there!

— Alex

TechCrunch's Top 3 Stories

Earnings reports typically feature CEOs and executives offering carefully worded, often uninteresting statements. This is due to regulations governing public company communications.

However, Elon Musk deviated from this norm during Tesla’s earnings call, subtly criticizing Apple. He subsequently expanded on this sentiment via Twitter, characterizing Apple’s App Store fees as a detriment to the internet.

Elon Musk and Apple: A Developing Situation

Musk’s comments have ignited a potential conflict with Apple, marking a notable departure from standard corporate discourse.

Robinhood's IPO Explained

TechCrunch recently interviewed Robinhood’s CFO to understand the rationale behind the company’s decision to become publicly traded.

The CFO stated that Robinhood had successfully strengthened its executive team, enhanced its product offerings, and improved its safety measures, positioning it for a public debut.

Analysis also explored the reasons for the relatively subdued response to the company’s initial public offering.

Gopuff Secures Significant Funding

Gopuff, the rapid delivery service, has confirmed a $100 million investment, elevating its valuation to $15 billion.

This latest funding round demonstrates the increasing investment in the “instant” delivery sector.

The capital infusion came from a diverse group of crossover funds and investment sources, representing a positive outcome for SoftBank’s Vision Fund.

This substantial investment underscores the growing confidence in the on-demand delivery market.

Startup and Venture Capital News

Recent activity indicates a positive trend for startups beginning with the letter "Y." Consider Yik Yak, Yac, and Yo – now, a new entrant, Yat, has emerged, successfully selling emoji strings valued in the tens of millions of dollars.

These strings are designed to represent an individual’s persona or identity. While skepticism is understandable, past misjudgments regarding platforms like Bitmoji demonstrate the difficulty in predicting market success.

Outvio Secures $3 Million in Funding

Outvio, originating from Estonia – a recognized center for startup innovation – has closed a $3 million funding round. The company is focused on developing a Software-as-a-Service (SaaS) platform.

This platform provides a white-label fulfillment solution specifically tailored for medium to large online retailers operating in Spain and Estonia, as reported by TechCrunch. Given the expansion of the e-commerce sector, Outvio’s concept is logical.

Varda Space Aims for In-Space Manufacturing

Varda Space recently completed a $42 million Series A funding round, proposing the construction of manufacturing facilities in space. The core rationale behind this ambitious project is the unique environment of microgravity.

Varda intends to establish its initial space-based manufacturing hub by the year 2023. This initiative resonates strongly with enthusiasts of science fiction and space exploration.

Porter Simplifies Kubernetes Management

Porter, a graduate of Y Combinator (YC), has secured $1.5 million in funding to enhance its platform. The company is developing a Platform-as-a-Service (PaaS) offering designed to streamline Kubernetes management.

The founding team recognized the power of technologies like Kubernetes but found the management aspects challenging. Consequently, they created a tool to simplify the process. The timing of their $1.5 million seed round is notable, and further funding opportunities are likely if the company thrives.

Cultivating Your Tech Career: An App-Like Approach

A significant number of professionals in the technology sector don't prioritize career progression to the same extent as others. Typically, they receive compensation exceeding that of their counterparts in other startup roles.

Furthermore, highly skilled individuals frequently have the opportunity to contribute to projects aligned with their personal interests.

Despite the growing need for skilled personnel, a persistent deficit exists. Organizations are struggling to recruit developers and engineers at the necessary pace, yet many of these professionals don't recognize their own value in the current market.

Raj Yavatkar, the CTO of Juniper Networks, observes, “Frankly, a large proportion of developers and engineers demonstrate a lack of proficiency in self-career management.”

Departing from established norms within the tech industry can present difficulties. Therefore, Yavatkar suggests that developers and engineers should approach career advancement as if it were a software project.

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

Big Tech Inc.

Recent events involving fires, lunar ambitions, and substantial European penalties are highlighted in today’s technology sector overview.

• Tesla Battery Fire Incident: Battery combustion remains a potential hazard, as previously experienced by Samsung. A significant fire recently occurred involving a 13-ton Tesla Megapack installation in southeastern Australia, garnering widespread media attention. Fortunately, no injuries were reported.
• Blue Origin’s Lunar Rover Bid Rejected: Despite submitting a considerably reduced proposal to the U.S. government, Blue Origin’s attempt to secure a lunar rover contract was unsuccessful. Furthermore, a protest filed by Dynetics concerning a SpaceX contract was also dismissed.
• Amazon Faces Significant EU Fine: The CNPD in Luxembourg has levied a substantial fine of €746 million (equivalent to approximately $887 million) against Amazon. This penalty stems from concerns related to General Data Protection Regulation (GDPR) compliance. While considerable, the fine’s impact on Amazon’s substantial annual operating cash flow is debatable.
• Airtel Africa Secures $200M Investment: Increased investment in digital initiatives across Africa is evident, extending beyond startups. Airtel Africa’s mobile money division has recently attracted significant funding, including a new $200 million investment from a Qatar Investment Authority affiliate. Mastercard and TPG are also participating in this funding round.

TechCrunch Experts: Growth Marketing

Startup founders are being contacted to identify their preferred sources for current growth marketing strategies. Participation in the survey can be completed through this link.

A sample testimonial received is presented below.

Marketing Agency: Ascendant

Referral Source: Robyn Weatherley, Thirdfort Limited

Testimonial: “Their extensive knowledge and practical experience are readily apparent. Furthermore, they possess a thorough comprehension of the distinct obstacles faced by companies in their initial phases.

They are keenly aware of the specific difficulties encountered at different growth stages and can modify their approach accordingly.

Ascendant has not only assisted us in implementing crucial growth strategies, but has also established a system for ongoing execution, regardless of whether our team consists of 5, 50, or 500 individuals.

This is particularly valuable as we expand and when presenting our progress to potential investors.

They also function as outstanding mentors, providing pragmatic guidance and adapting to the dynamic environment of a rapidly expanding, early-stage enterprise.”