Facebook Pauses Instagram Kids App - Daily Crunch
Daily Crunch: September 27, 2021
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Today's Headlines
Greetings, and welcome to the Daily Crunch for September 27th, 2021. The news from TechCrunch today is particularly noteworthy.
Rather than a traditional introduction, we will proceed directly to the key stories.
— Alex
TechCrunch's Leading Stories
A significant update has been made to TechCrunch’s premium offering: Extra Crunch has been rebranded as TechCrunch+. This transition represents a deliberate and anticipated evolution of the service.
Further details regarding this change, and options for supporting TechCrunch’s journalism, can be found through the provided links.
Facebook's Instagram for Kids Project
In other major news, Facebook has temporarily suspended development of its Instagram for Kids application. This decision follows substantial criticism regarding the project's initial plans.
Despite the pause, the company maintains its belief in the product’s potential and intends to address public concerns before proceeding.
Coinbase and Cryptocurrency Investment
Coinbase is streamlining cryptocurrency investment for its users. The platform now allows individuals to allocate a portion of their salary directly into cryptocurrency holdings.
This feature mirrors traditional investment practices, such as contributing to retirement accounts. It enables users to invest in digital assets like Solana through regular payroll deductions.
The concept is based on the idea that, like traditional investments, cryptocurrency value is ultimately represented by numerical data.
Startups and Venture Capital Updates
Prior to examining today’s startup highlights, TechCrunch dedicated some time to analyzing the challenges surrounding IPO pricing. The potential of direct listings to enhance price discovery for unicorn companies was also considered, alongside a review of discussions concerning startup valuations.
Recent Funding Rounds and Developments
- Malloc and Antistalker: Combating Mobile Spyware
Modern mobile phones have become central to daily life, serving as hubs for communication, planning, gaming, and storing personal data. However, security vulnerabilities exist, stemming from profit-driven companies and malicious actors. Malloc, a Y Combinator-backed company, offers Antistalker to help consumers defend against mobile spyware.
- EdSights Secures $5M to Reduce Student Attrition
While unconventional, viewing students as revenue-generating assets subject to churn is a reality for many educational institutions. EdSights, an edtech company experiencing 6x revenue growth, has raised $5 million to address this issue and facilitate expansion.
- Innovations in Alternative Meats
Two noteworthy developments occurred in the alternative meat sector. New Age Meats secured $25 million in funding for its cultured meat products. Simultaneously, Beyond Meat is preparing to launch its plant-based “chicken” tenders in grocery stores, catering to health-conscious consumers.
- Astera Labs Attracts $50M Investment
Despite the ongoing chip shortage, capital remains available for chip startups, even those without fabrication facilities. Astera Labs recently raised $50 million, achieving a valuation of just under $1 billion. Increased efforts to resolve the chip shortage are strongly encouraged.
- Flat6Labs Invests $10M in Tunisian Startups
Technology startups in Tunisia now have access to a new seed fund, thanks to a $10 million investment from Flat6Labs. This represents positive news for the African tech ecosystem, which has experienced significant fundraising activity this year.
The current market demonstrates continued investment in diverse areas, from cybersecurity to food technology and regional startup ecosystems. These developments highlight ongoing innovation and growth within the startup landscape.
The Power of Creative Capital Over Venture Funding
Prior to acquiring initial customers or securing investment, startup founders need to dedicate resources to the creation of intellectual property.
This IP isn't always a formally registered patent; it frequently manifests as valuable assets like product renderings, detailed audience insights, or preliminary product and engineering models.
Brett Lovelady, the founder of Astro Studios, a design company, characterizes these assets as creative capital. He posits that this type of capital “has the potential to be more enduring and ultimately more valuable” than traditional venture capital.
Lovelady details various forms of creative capital and provides numerous illustrations of how startups can utilize it to achieve positive outcomes in a recent article for TechCrunch+.
(TechCrunch+ is a membership program designed to empower founders and startup teams. Registration is available here.)
Understanding Different Types of Creative Capital
Lovelady identifies several key categories of creative capital that startups should prioritize.
These include brand assets, product design, engineering prototypes, and user research data.
He emphasizes that building these assets early on can provide a significant competitive advantage.
Brand assets, for example, establish a unique identity and resonate with the target market.
The Value of Early Investment in Design
Investing in robust product design isn't merely about aesthetics; it's a strategic move.
Well-executed design can streamline the development process and reduce costly revisions later on.
Furthermore, compelling visuals can be instrumental in attracting both users and investors.
Engineering Prototypes as Demonstrable Progress
Early engineering prototypes serve as tangible proof of concept.
They demonstrate technical feasibility and allow for iterative improvements based on real-world testing.
These prototypes are invaluable when pitching to potential investors, showcasing demonstrable progress beyond just an idea.
Leveraging User Research for Informed Decisions
Gathering and analyzing user research data is crucial for product-market fit.
Understanding the needs, pain points, and preferences of the target audience informs product development and ensures that the final product addresses a genuine market demand.
This data-driven approach minimizes risk and maximizes the chances of success.
Creative Capital's Long-Term Benefits
Unlike venture capital, which can be depleted, creative capital appreciates over time.
Strong brand recognition, a well-designed product, and a loyal user base are assets that continue to generate value.
Lovelady argues that focusing on building these assets creates a more sustainable and resilient business.
Ultimately, creative capital empowers startups to control their own destiny, rather than being solely reliant on external funding.
Big Tech Inc.
YouTube TV is evolving, increasingly mirroring traditional cable television. As a consistent YouTube TV subscriber, it’s frustrating to see the emergence of coverage blackouts, similar to those experienced with cable, particularly when attempting to view out-of-market sports broadcasts.
Currently, YouTube TV is adopting another practice common in cable: content blackouts stemming from contractual disputes. NBC Universal is considering removing 14 channels from the YouTube TV platform. This development represents a step backward in the streaming experience.
TikTok's Continued Growth
TikTok has achieved a significant milestone, surpassing 1 billion monthly active users. This figure demonstrates the platform’s enduring popularity and its continued relevance despite increasing commercialization and advertising content.
Despite concerns about its transformation into a predominantly advertising-driven medium, TikTok remains a widely used and influential social media platform.
Regulatory Approval in the U.K.
The U.K.’s competition regulator has approved Facebook’s acquisition of Kustomer, a customer relationship management (CRM) software provider. This decision indicates that not all mergers and acquisitions involving large technology companies are facing regulatory hurdles.
This approval is a notable instance of a Big Tech company successfully completing a purchase, contrasting with other deals that have been challenged by antitrust authorities.
Apple's 3D View Expansion
Apple is expanding its 3D view feature to include airports in Los Angeles (LAX), New York (JFK), San Francisco (SFO), and London Heathrow (LHR). This enhancement provides users with a more immersive and detailed airport navigation experience.
Unfortunately, the availability of this feature is currently limited to travelers passing through these four major cities. Users in other locations, such as Providence, must await further expansion of the service.
The rollout of 3D view signifies Apple’s ongoing investment in augmented reality and its commitment to improving the travel experience for its customers.
TechCrunch Seeks Recommendations for Top Growth Marketing Professionals
Image Credits: SEAN GLADWELL / Getty ImagesTechCrunch is currently soliciting recommendations for skilled growth marketers. These professionals should demonstrate proficiency in areas like SEO, social media marketing, and content creation.
Growth marketers are invited to share this survey with their clients. We aim to gather insights into the positive experiences clients have had with their marketing partners.
Survey Purpose and Coverage
The feedback collected through this survey will directly influence TechCrunch’s future reporting. It will help us identify and highlight leading experts in the field.
Those interested in understanding how these surveys inform our editorial process can review a recent interview. The interview features Anna Heim and representatives from the Australian growth marketing agency, Ammo.
The piece, titled “Australian growth marketing agency Ammo helps startups calibrate their efforts,” provides valuable context.
Areas of Expertise
We are particularly interested in growth marketers with a strong track record in:
- SEO (Search Engine Optimization)
- Social Media Marketing
- Content Writing
- And other related growth strategies
Client testimonials are crucial to this process. We encourage clients to detail the benefits they’ve received from their collaboration with these marketers.
