Peloton Halts Production Amid Demand Drop - Daily Crunch

Daily Crunch: January 20, 2022 – A Focus on Expansion

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The Trend of 'More' in Tech

Greetings, and welcome to today’s Daily Crunch for January 20, 2022. The prevailing trend highlighted today is increased activity across several key sectors. While the creator economy experienced growth in the previous year, a greater number of prominent platforms are now actively developing tools to support independent creators.

Similarly, despite a strong year for cryptocurrency startups, an even larger cohort of established corporations are now entering the cryptocurrency space. Unfortunately, Peloton is currently facing significant challenges.

Key Observations

• The creator economy is seeing expanded platform support.
• Cryptocurrency is attracting increased interest from major companies.
• Peloton is experiencing a period of difficulty.

These developments indicate a broadening of investment and innovation within the technology landscape. Expansion appears to be a defining characteristic of the current market.

Early Stage Event Announcement

Early Stage is returning to San Francisco this year. We look forward to seeing you there!

TechCrunch's Top 3 Updates

Recent developments highlight shifts in the tech landscape. These include production adjustments at Peloton, new NFT integration on Twitter, and a strategic acquisition by Plaid.

Peloton's Production Halt

Peloton is reportedly pausing production due to a surplus of inventory. This contrasts sharply with the earlier periods of high demand and limited availability. The company’s stock price experienced a significant decline following this announcement.

The situation suggests a reversal of the trends that benefited many companies during the pandemic. The influence of pandemic-driven consumer behavior on corporate valuations appears to be waning.

Twitter's NFT Profile Picture Feature

Twitter is introducing support for Non-Fungible Tokens (NFTs). Subscribers to Twitter Blue will be able to link their cryptocurrency wallets and display their owned NFTs as profile pictures.

This new functionality is expected to generate diverse reactions among users. However, its implementation demonstrates Twitter’s recognition of the growing importance of the NFT market.

Notably, Facebook and Instagram are also reportedly exploring NFT integration, indicating a broader industry trend.

Plaid Acquires Cognito

Following the collapse of its acquisition by Visa due to regulatory challenges, Plaid has remained active. The fintech API provider has secured additional funding and increased its valuation to over $13 billion.

Plaid has been focused on expanding its capabilities through both internal development and acquisitions. The recent purchase of Cognito for approximately $250 million will enhance Plaid’s core API offerings with additional services.

This acquisition signifies Plaid’s commitment to strengthening its position within the financial technology sector.

Startups/VC

Prior to a surge of recent news, a few observations are in order. Firstly, Anna Heim penned a thoughtful piece concerning first-time founders and the potential undervaluation occurring due to the market’s preference for entrepreneurs with prior startup experience. Considering that several recent unicorn companies were established by new founders, rather than those with multiple ventures under their belts, her assessment appears insightful.

Furthermore, the Chinese venture capital landscape, having previously avoided significant downturns, may now be confronting new challenges. It is possible that the anticipated declines in investment will finally materialize this time around.

Now, let’s review the latest news:

• Cherry Ventures Secures $340M: The German venture capital firm, focused on early-stage technology investments, has obtained new funding for its third fund. As Mike Butcher reports, the firm also invests in blockchain technologies. Previous investments include companies like Flink and SellerX.
• Details of the Crypto.com Hack: The compromise of two-factor authentication (2FA) led to the loss of customer funds and a temporary suspension of withdrawals at the heavily advertised cryptocurrency platform, Crypto.com. While such breaches may seem commonplace currently, they remain a serious issue, particularly considering Bitcoin’s inception in 2008. One wonders what Matt Damon’s perspective is.
• Growth in the Sexual Health Sector: The emergence of TBD Health, offering at-home sexually transmitted infection (STI) testing “for vagina-havers,” highlights the expanding market in sexual health. This is reminiscent of Juna, indicating a competitive landscape within the at-home STI testing industry.
• The Resurgence of No-Code Platforms: No-code development is gaining traction once more. Following coverage of Softr’s funding round, an internal inquiry revealed a renewed wave of investment in no-code solutions. Today, Prophecy is raising $25 million for its “low-code data engineering platform.”
• Weavit: A Tool for Thought Capture: Startup Weavit aims to provide a novel method for quickly recording thoughts within a note-taking application, linking them to a broader knowledge base. TechCrunch notes the question of whether the world requires another note-taking tool, to which the answer appears to be affirmative. Personally, given my own cognitive limitations, I could certainly benefit from such assistance.
• CodeSee Simplifies Code Understanding: The startup CodeSee offers a straightforward solution: helping developers visualize their code. This intuitive name reflects the company’s core function. As Ron Miller explains, code visualization aids in understanding how different code components interact. Although my own C++ coding experience has been unsuccessful, this appears to be a valuable concept.
• Green Labs Raises $140M: The agtech sector is experiencing significant growth, potentially necessitating the addition of dedicated agtech reporters. The company has now secured a total of $170 million to support its digital services for the agricultural industry, including an AI-powered application that provides over 500,000 farmers with insights into crop lifecycles. Recognizing the challenges inherent in farming, it is commendable that growers are receiving new tools to aid their efforts.

Finally, let’s consider quantum computing. Similar to self-driving cars, quantum computing has consistently felt like a technology on the horizon. However, Terra Quantum, a Swiss company, is now offering quantum computing as a service. Early access to quantum systems is now available. The key question remains: when will mainstream adoption occur? Terra Quantum likely anticipates this happening “soon.”

Establishing a Product Advisory Council for Your Startup

Direct engagement with your user base is consistently valuable, regardless of the method employed – be it an informal Reddit AMA session or a Twitter Space discussion.

While customer personas offer insights, direct conversations with customers are superior for grasping their preferences and determining their willingness to invest.

A product advisory council (PAC) provides early-stage startups with access to collective customer intelligence. The advantages are substantial, encompassing validation of marketing strategies and guidance for future product development.

However, successful implementation necessitates clearly defined objectives and the provision of reciprocal value to council members.

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

Defining the Purpose of Your PAC

Before initiating the formation of a PAC, it’s crucial to articulate the specific objectives you aim to achieve. Are you seeking feedback on a new feature, or perhaps validation of your overall product roadmap?

A well-defined purpose ensures focused discussions and actionable insights. Consider what key questions you need answered and how the PAC can best contribute to those answers.

Without a clear focus, the PAC risks becoming unproductive and a drain on both your time and the participants’.

Recruiting the Right Members

Identifying ideal PAC members requires careful consideration. Look beyond simply selecting your most vocal customers.

Prioritize individuals who represent your target demographic and possess a genuine interest in providing constructive feedback. Diversity in perspectives is also highly beneficial.

Consider factors like job title, industry experience, and frequency of product usage when making your selections. A balanced council will yield more comprehensive insights.

Creating Value for Participants

Attracting and retaining valuable PAC members requires offering them tangible benefits. Simply asking for their time isn't enough.

Potential incentives include early access to new features, exclusive product previews, or direct influence on the product development process. Recognition for their contributions is also important.

Demonstrate that their feedback is genuinely valued and actively incorporated into your product strategy. This fosters a sense of ownership and encourages continued participation.

Structuring Effective Meetings

To maximize the effectiveness of PAC meetings, establish a clear agenda and stick to it. Prepare focused discussion points and allocate sufficient time for each topic.

Encourage open and honest feedback, creating a safe space for members to share their thoughts without fear of judgment. Active listening is paramount.

Document all feedback thoroughly and share summaries with PAC members to demonstrate that their input is being taken seriously.

Maintaining Momentum

A PAC isn’t a one-time event; it’s an ongoing relationship. Regular communication and consistent engagement are essential for maintaining momentum.

Provide updates on how their feedback has been implemented and solicit their input on new challenges and opportunities. Show them that their contributions continue to make a difference.

By nurturing this relationship, you can build a valuable resource that provides ongoing insights and helps you build a better product.

Big Tech Inc.

A new feature has been extended to Android users on Twitter. Previously available to iOS users, the Communities feature is now accessible on the Android platform.

The ongoing competition in the virtual reality market is intensifying. Reports suggest Google is developing a new VR headset, slated for release in the coming years.

Expanding VR Options

This development will provide consumers with at least two distinct, proprietary VR ecosystems to select from.

Meta is making strides in artificial intelligence. Their latest AI model demonstrates the ability to learn effectively from various data types.

Multi-Modal Learning

• Written content
• Spoken language
• Visual data

The AI’s capacity to integrate these different modalities is considered a significant advancement.

Furthermore, Mercedes-Benz is collaborating with Luminar on the development of lidar technology. This partnership focuses on enhancing autonomous driving capabilities.

This collaboration signifies a continued investment in advanced automotive technologies.