daily crunch: facebook extends trump’s suspension until january 2023
Daily Crunch: June 4, 2021 – A Week in Review
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Welcome to Daily Crunch
Greetings, and welcome to the Daily Crunch for June 4, 2021. The past week has been exceptionally busy and full of developments.
These were four incredibly active days in the tech world. However, the rapid flow of news isn't expected to diminish anytime soon.
Looking Ahead
Next week features Apple’s highly anticipated WWDC developer conference, which we have already provided a preview of. TechCrunch’s upcoming event concentrating on the future of mobility is also fast approaching.
We hope you find time to rest and recharge this weekend. — Alex
TechCrunch's Top 3 Updates
Facebook's Stance on Trump: Reports surfaced today indicating Facebook intends to re-evaluate its suspension of former U.S. President Donald Trump within the next two years.
This deliberation reflects Facebook’s ongoing challenges in establishing guidelines for its widely used social media platforms.
Increased IPO Activity
The trend of venture-backed companies launching initial public offerings (IPOs) is accelerating.
Today saw filings from both Xometry (previously covered here) and SentinelOne (detailed analysis available here).
A robust pipeline suggests further IPO announcements are anticipated throughout the third quarter.
Global Regulatory Pressure on Tech
Governments worldwide are increasingly exerting influence over technology companies.
Some actions, such as the U.S. government’s renewed restrictions on specific Chinese tech firms, are based on justifiable concerns.
Conversely, other governmental interventions, like Nigeria’s recent attempt to prohibit Twitter, appear less reasoned.
Regardless of political viewpoints, it is expected that this dynamic between governments and the tech sector will persist indefinitely.
Expect continued developments in this area for the foreseeable future.
Startups and Venture Capital
Recent investment activity highlights both rapid growth and evolving strategies within the startup ecosystem.
Flink Secures $240M in Funding
German grocery delivery service, Flink, has rapidly attracted significant investment, raising $240 million after only six months of operation. The company’s name, translating to “quick” in English, reflects both its delivery speed and the pace of its funding rounds.
GBM Receives Up to $150M from SoftBank
Mexican financial services firm, Grupo Bursátil Mexicano (GBM), a company with a 35-year history, is experiencing substantial growth. The firm has seen a dramatic increase in investment accounts, rising from 38,000 in January 2020 to over 650,000 by the end of that year.
Currently, GBM has not yet surpassed the 1,000,000 account milestone, but its expansion is noteworthy.
Buy Now, Pay Later (BNPL) Market Trends
Analysis from TechCrunch indicates continued rapid expansion within the buy-now-pay-later (BNPL) market. However, profitability remains a challenge for many companies operating in this space.
Despite substantial growth, few BNPL companies are currently generating profits.
Toyota Invests $300M in Emerging Technologies
Toyota’s venture capital arm is refocusing its investment strategy. The fund, previously focused on artificial intelligence, is now prioritizing emerging technologies and carbon neutrality initiatives.
This strategic shift is accompanied by a $300 million investment commitment to support these goals.
Aurora to Merge with SPAC
Aurora, a startup specializing in autonomous vehicle technology, is nearing a deal to merge with Reinvent Technology Partners Y, a special purpose acquisition company (SPAC).
Reinvent Technology Partners Y was launched by Reid Hoffman, co-founder of LinkedIn and a prominent investor. This merger was initially reported by TechCrunch.
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Big Tech Inc. – A Weekly Overview
Current developments within the Big Tech sector are largely centered around Facebook. Individuals who find themselves frequently engaged with content from Zuckerberg’s company may wish to proceed directly to the Community section.
News from Facebook extended beyond updates concerning former U.S. President Donald Trump. The company also announced a gaming acquisition and is facing antitrust investigations in both the United Kingdom and the European Union.
Gaming Acquisition
Facebook revealed its acquisition of Crayta, a platform for game creation, described by TechCrunch as being similar to Roblox. Roblox experienced significant growth during the COVID-19 pandemic and recently became publicly listed.
Alongside this acquisition, Facebook has been actively investing in individual Virtual Reality (VR) startups. This suggests a broader strategic initiative within the gaming industry.
A consistent pattern in Facebook’s business strategy appears to be the replication of successful concepts and revenue streams observed in other companies.
Antitrust Scrutiny
Facebook is now subject to increased regulatory attention from authorities in the U.K. and the EU. These investigations focus on the company’s handling of data obtained from advertising clients and users of its single sign-on service.
The core concern of these probes, as reported by TechCrunch, is whether Facebook leverages this data to gain an unfair competitive advantage, particularly in markets like online classified advertisements.
Specifically, regulators are examining if the data usage constitutes an anti-competitive practice.
- The investigations are being conducted concurrently in the U.K. and the EU.
- Data from advertising customers and single sign-on users is under review.
- The focus is on potential unfair advantages in competitive markets.
This concludes the Big Tech update for this week.
Engaging with Our Audience
We extend our gratitude to everyone who participated in yesterday’s discussion concerning the evolving landscape of e-commerce. It provides a valuable opportunity to explore our written content in greater detail.
The Twitter Spaces platform proved to be an enjoyable medium for interaction; however, Brandon Chu of Shopify unfortunately experienced compatibility issues accessing the session from his Android device during the beta testing phase.
This necessitates a repeat engagement to ensure broader participation.
Upcoming WWDC Discussion
Further opportunities for discussion are planned, including a pre-event session focusing on WWDC. This will be spearheaded by our hardware editor, Brian Heater.
The session is scheduled to commence promptly at 8:30 a.m. PDT/11:30 a.m. EDT on Monday. Attendees are encouraged to prepare their insights and inquiries for a lively exchange.