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Daily Crunch: October 19, 2021

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Preparation for the SaaS Event

Greetings, and welcome to Daily Crunch for October 19, 2021! With just over a week remaining until our SaaS event, preparations are now in full swing.

Currently, much effort is being dedicated to event logistics. A recent call regarding a panel discussion has generated considerable enthusiasm.

The primary challenge lies in refining the list of questions to fit within the allotted 30-minute timeframe.

Deep Dive into Automattic

Beyond event planning, TechCrunch presents an extensive analysis of Automattic. This company is the driving force behind WordPress and also owns the platform Tumblr.

A Complex Corporate History

The ownership history is somewhat intricate. Tumblr was previously owned by Verizon Media, our former parent company.

Subsequently, Verizon, the parent company of our former parent, divested us, leading to our integration with Yahoo.

Despite this complexity, the Automattic TC-1 is noteworthy. We encourage you to explore this fascinating development. – Alex

TechCrunch's Leading Stories

Recent developments have seen significant activity from both Google and within the Chinese venture capital sphere. Additionally, a substantial data leak concerning 'stalkerware' has come to light, posing risks to personal information.

Google Unveils New Hardware and Software

Following Apple’s product showcase, Google has also announced a range of new hardware and software offerings. Comprehensive coverage is available for those seeking updates on smartphones, the Pixel Pass subscription service, and the latest Android 12 release.

The announcements also incorporate advancements in artificial intelligence, demonstrating Google’s continued investment in this field.

Chinese Venture Capital Experiences a Strong Quarter

Despite ongoing regulatory adjustments by the Chinese government impacting technology, the economy, and cultural norms, venture capital investment in Chinese startups has surged. This outcome defies expectations given the current climate of change.

A detailed analysis reveals the factors driving this unexpected growth in investment activity.

Significant Data Breach Exposes Personal Phone Data

A major security flaw in widely-used consumer spyware has led to a large-scale data leak, potentially compromising the personal information of thousands of individuals. This report comes from cybersecurity expert Zack Whittaker.

The vulnerability allows for the extraction of sensitive data directly from users’ phones, highlighting the risks associated with such applications. The issue is considered a serious threat to privacy and security.

Personal information is at risk due to this security issue.

Startups and Venture Capital

Defining a startup can be surprisingly complex, as evidenced by recent discussions on Twitter. A potential benchmark could be that any company securing $50 million in funding transitions beyond the startup phase. But what exactly does it become – something distinct, or a stage between a startup and a unicorn?

This question arises when considering companies like Instacart. They recently invested $350 million in acquiring another startup, signaling a deeper involvement in the technology that supports traditional retail. However, it’s debatable whether either company truly qualifies as a startup at this point. It’s a topic worthy of consideration. (Share your thoughts on the “no longer a startup” threshold by replying to this email – I’m eager to hear your perspective.)

Recent Funding Rounds and Trends

Large Funding Rounds and Startup Status: Is a $1 billion funding round a definitive marker of no longer being a startup? The case of Gorillas, a Berlin-based on-demand grocery delivery service, raises this question. They recently secured nearly $1 billion in a single round, achieving a valuation slightly exceeding $2 billion. While the valuation seems conservative given the investment, it still indicates strong momentum in the grocery delivery sector.
BluePallet and Niche Market Opportunities: BluePallet, an online marketplace connecting manufacturers within the chemical industry, recently raised $5 million. This highlights the potential for tech startups to address specific industry needs. Numerous other vertical SaaS opportunities likely exist across various sectors.
IT as a Service (ITaaS): Electric offers IT support services, mirroring the HR solutions provided by Justworks. Justworks streamlines HR processes for businesses, and Electric extends this model to IT, recently securing $90 million in funding.
Figma’s Strategic Pricing Adjustment: Figma, renowned for its design software, also offers a collaborative whiteboard tool called FigJam, a competitor to Mural. To encourage wider adoption, Figma has reduced the price of FigJam. This move is noteworthy, as software pricing typically trends upwards.
AI as a Service (AIaaS): Mage is developing AI tools designed for product teams, aiming to reduce reliance on scarce data science expertise. The company has secured $6.3 million in funding. Mage aligns with the broader trend of empowering non-developers with accessible technology.
Wonolo’s Success in Serving the Hourly Workforce: Wonolo demonstrates the viability of building solutions for everyday needs. The company connects hourly workers with job opportunities and has recently raised a significant nine-figure sum.
SOC Prime and Threat Detection: SOC Prime, a Boston-based startup specializing in threat detection, has raised $11 million. This funding supports their work in the cybersecurity market.

Enhancing Team Output with a Dedicated ‘Get It Done’ Day

Travelpayouts implemented a bi-weekly initiative where team members establish well-defined objectives and tackle focused assignments with minimal interruption, as detailed by Travelpayouts leader Ivan Baidin.

This ‘Get It Done’ Day facilitated the resolution of previously deferred projects, often perceived as minor in scope. These included enhancements to automated email sequences, analytics improvements, and workflow optimization.

Baidin emphasizes that the completion of these consistently delayed tasks resulted in measurable progress. He states that incremental improvements are highly valued by the company.

This piece offers practical guidance for establishing a successful ‘Get It Done’ Day (GSDD) program, incorporating insights gained from challenges encountered during its initial implementation. It follows the format of a TechCrunch+ “how-to” guide.

(TechCrunch+ is a subscription service designed to support founders and startup teams in their growth. Registration is available here.)

Big Tech Inc.

The most noteworthy announcement from Apple's event yesterday wasn't related to new computers or processors. Instead, the focus was on improvements to Siri and Apple Music, a somewhat unexpected development.

Recent Tech News

Is increased monitoring desirable? TechCrunch has published a review of the Facebook Portal Go, catering to those interested in such devices.
Positive outlook: Augmented reality is poised to become a significant platform for brand advertising. As AR technology gains wider adoption, brands will actively seek opportunities within it.
Snap is strategically positioning itself to facilitate this trend by establishing a global studio. This studio will likely assist various companies, including those in the pharmaceutical and automotive sectors, in establishing a presence in the metaverse.
Finally, the United States Senate is advocating for the selection of multiple teams to participate in upcoming lunar missions. This initiative reflects a continued enthusiasm for space exploration.

The prospect of expanded space programs is particularly exciting. It demonstrates a renewed commitment to scientific advancement and discovery.

Furthermore, the integration of brands into augmented reality presents both opportunities and challenges. It will be crucial to balance commercial interests with user experience.

Apple’s focus on Siri and Apple Music signals a potential shift in strategy. Enhancing these services could strengthen user engagement and loyalty.

TechCrunch Experts

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Below is a testimonial highlighting the expertise of one such consultant.

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Josh demonstrates exceptional skill, and has assembled an impressive team.

Their contributions significantly accelerated our product launch timeline and provided a solid foundation for ongoing product development and iteration.”