Google Drops FLOC, Introduces Topics API for Ad Targeting - Daily Crunch

Daily Crunch: January 25, 2022

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Greetings, and welcome to today’s Daily Crunch for January 25, 2022. The volume of news is substantial today, presenting a challenge for comprehensive coverage within a single newsletter.

A News-Packed Day

The sheer amount of developments necessitates a condensed presentation in certain areas. However, key information will still be conveyed. Let’s proceed directly to the headlines.

– Alex

Key Highlights

• Significant News Volume: Today’s tech landscape is brimming with activity.
• Concise Reporting: Due to the extensive coverage, some sections are summarized.
• Daily Delivery: Stay informed with a daily email at 3 p.m. PST.

The goal is to provide a comprehensive overview despite the breadth of information. Important details are prioritized for your convenience.

This ensures you remain current on the most crucial happenings in the technology world. A focused approach allows for efficient information consumption.

TechCrunch's Top 4 Developments

Here's a rundown of the most significant tech news as reported by TechCrunch.

Google's New Approach to Targeted Advertising

Google is shifting its strategy for interest-based advertising, moving away from the previously proposed Federated Learning of Cohorts (FLoC).

Instead, the company is now advocating for Topics. This new system involves the browser analyzing a user’s browsing history to identify their interests.

The browser will then categorize these interests into approximately 300 thematic groupings, retaining this data for around three weeks. This represents a substantial change in how online advertising may function.

The Future of the Nvidia-ARM Acquisition

The proposed acquisition of ARM by Nvidia is facing potential collapse due to slow regulatory approval.

Concerns regarding antitrust implications are mounting, leading Nvidia to consider withdrawing from the deal. An initial public offering (IPO) for ARM is now a distinct possibility.

The stance of SoftBank, ARM’s current owner, is crucial as the regulatory landscape evolves.

European Venture Capital Growth in 2021

The European venture capital market experienced significant expansion in 2021, outpacing many other global regions.

TechCrunch analyzed the data to pinpoint specific countries within Europe that demonstrated particularly strong growth. The report also explores anticipated trends for the future of European VC funding.

YouTube's Exploration of NFTs

YouTube is actively investigating the potential of NFTs (Non-Fungible Tokens) as a new revenue stream for its content creators.

CEO Susan Wojcicki has indicated the platform is exploring blockchain technologies to empower creators financially.

While the specific implementation of NFTs on YouTube remains undefined, it reflects a broader trend of major digital platforms experimenting with this technology to assess its viability for their user base.

Startups and Venture Capital Updates

Cellino Bio Secures $80 Million in Funding: Today’s most prominent development in the startup ecosystem centers around Cellino Bio. Having recently emerged victorious from our own startup pitch competition, the company has successfully completed a substantial Series A funding round, providing significant financial resources for future growth. Further details regarding the startup’s operations can be found here.

Key Highlights from Today’s Startup News:

• Substack Expands Content Options: While not transitioning to video production, the popular publishing platform, Substack, is enabling its creators to integrate video content into their subscription offerings. This allows for videos to be placed behind paywalls, potentially increasing revenue for both creators and the platform itself.
• $32 Million Investment in Carbon Offset Verification: Sylvera has announced a significant Series A funding round, following a $5.8 million Seed round secured last year. The company utilizes machine learning to analyze data from sources like satellite imagery and lidar, aiming to enhance accountability and transparency in carbon offsetting initiatives, as reported by TechCrunch.
• Autonomous Lawn Mowing Gains Traction: With the iRobot self-driving lawn mower still awaiting market release, Electric Sheep Robotics is positioning itself as a competitor in this emerging field. The company recently raised $21.5 million to further develop its autonomous lawn care technology.
• Athletic Greens Achieves Billion-Dollar Valuation: Athletic Greens has secured $115 million in funding, resulting in a company valuation of $1.2 billion, according to TechCrunch. The company markets AG1, a powdered beverage formulated to provide comprehensive daily nutrition. Its rapid growth to a nine-figure revenue stream raises questions about valuation models for non-software businesses.
• Continued Investment in Sales Technology: Recognizing the need for specialized tools for sales professionals, VCs are actively funding companies in this space. Scratchpad, which recently raised a $33 million Series B, offers a product designed to streamline data entry into CRMs and improve information sharing within sales organizations.
• Hunters Raises Series C Funding for Cybersecurity Solutions: Hunters has quickly followed up a previous funding round with another, demonstrating continued investor confidence. The startup aims to provide enterprises with an alternative to traditional Security Information and Event Management (SIEM) solutions.
• Bokksu Valued at $100 Million for Asian Grocery Delivery: Bokksu, a company specializing in the delivery of Asian food products, has secured funding at a $100 million valuation. Originating as a Japanese snack subscription service in 2016, the company has since broadened its offerings and is now poised for further expansion with $22 million in new capital.
• Tunisian Startup InstaDeep Secures $100 Million: InstaDeep, a startup based in Tunis, has attracted significant investment, including funding from Google. The company focuses on developing decision-making systems to address real-world challenges.
• Further Startup News Available: A comprehensive overview of additional startup activity can be found on the TechCrunch front page.

Concluding our coverage of early-stage ventures, Greg Kumparak provides an analysis of the 29th cohort of startups from the Alchemist Accelerator, which specializes in enterprise-focused companies.

David Chaum, a Web3 Visionary, Advocates for ‘Computing with a Conscience’

David Chaum, a pioneering figure in cryptography, posits that web3 represents a shift towards “computing with a conscience.” His foundational work dates back to 1982.

At that time, he authored a dissertation detailing a blockchain protocol and its corresponding implementation code.

Chaum’s subsequent cryptographic investigations have been instrumental in the creation of technologies such as digital currency and secure, anonymous communication systems.

Recently, he introduced xxmessenger, a messaging application touted as the first to offer “quantum-resistant” security features.

Reflections on the Evolution of Cryptocurrency

When questioned about the recent advancements in the field, Chaum observed that Bitcoin and similar cryptocurrencies have achieved a level of prominence that can no longer be overlooked.

He articulated that the current challenge lies in facilitating widespread public adoption of this emerging generation of information technology.

The core question, as he frames it, is how to make these technologies accessible and user-friendly for the average person.

This involves bridging the gap between the technical complexities and the practical benefits for everyday users.

The Potential of Web3

Chaum believes that web3 has the potential to revolutionize how we interact with technology.

He envisions a future where privacy and security are paramount, and individuals have greater control over their data.

This vision aligns with his long-standing commitment to developing technologies that empower users and protect their fundamental rights.

Big Tech Inc.

The leading technology firm based in Rhode Island anticipates continued semiconductor scarcity: Gina Raimondo, the current Secretary of Commerce and previously the governor of Rhode Island, has stated that the challenges surrounding semiconductor supply are far from resolved. This indicates ongoing difficulties, though at least provides clarity regarding the current situation.

IBM's Financial Performance and Investor Reaction

IBM recently announced its strongest growth figures in a considerable period. This positive news initially led to an increase in the company’s stock price.

Subsequently, IBM announced it would refrain from offering earnings-per-share projections. This decision triggered a decline in stock value.

However, after careful consideration, investors reassessed the situation and ultimately increased the company’s overall valuation by over 5%.

Shifting Trends: Big Tech to Blockchain

A noticeable movement of personnel is occurring within the technology sector. Individuals are transitioning from established, large corporations to newer, smaller companies focused on cryptocurrency-related ventures.

The executive who led YouTube Gaming is the most recent example of this trend.

Controversy Surrounds Spotify and Vaccine Information

Further complications have arisen for Spotify, as musician Neil Young has attempted to leverage his platform to encourage the streaming service to address the spread of vaccine misinformation through its podcast host, Joe Rogan.

The outcome of this situation remains uncertain, but it presents a significant challenge for the European-based company.

GM's Expansion into Electric Vehicle Manufacturing

GM is outlining ambitious strategies for scaling up its production of electric vehicles. The company has revealed substantial plans to increase its capacity in the electric vehicle market.

TechCrunch Experts

TechCrunch is currently seeking recommendations for software consultants. They are interested in professionals specializing in areas ranging from UI/UX design to cloud architecture.

Your input is requested regarding consultants you have previously engaged with. Please submit your recommendations through this link.

Recent Interview Highlight

In case you missed it, a recent interview conducted by Miranda Halpern with Georgina Lupu-Florian is now available.

The discussion centered on effective collaboration strategies for non-technical founders working alongside software developers.

The interview’s title is: “How should nontechnical founders collaborate with software developers?”