Merama Achieves Unicorn Status in 12 Months - Daily Crunch
Daily Crunch: December 9, 2021
A daily summary of TechCrunch’s most significant and impactful stories is delivered to inboxes each day at 3 p.m. PST. You can subscribe to this service here.
Greetings, and welcome to the Daily Crunch for December 9, 2021. The Christmas holiday is drawing nearer for those who observe it, and as such, we released the second installment of our 2021 venture capital book recommendation list today.
Venture Capital Reading List
The first part of the guide can be found here. A substantial number of books are included, so it is advisable to find a comfortable setting before the year concludes and revitalize yourself with some reading!
—Alex
Image Credits: TechCrunchStay informed about the latest developments in the tech industry. This daily digest provides a concise overview of the key stories from TechCrunch.
Don't miss out on valuable insights and recommendations. Subscribe now to receive the Daily Crunch directly in your inbox.
TechCrunch's Top 3 Updates
Here's a rundown of the most significant tech news as reported by TechCrunch.
Italy Issues Substantial Fine to Amazon
Italy has levied a fine of $1.3 billion against Amazon. This penalty stems from allegations that the U.S.-based e-commerce company leveraged its dominant position in the market to compel third-party sellers to utilize its Fulfillment by Amazon logistics service.
According to the Italian Autorità Garante della Concorrenza e del Mercato, Amazon engaged in practices that disadvantaged sellers. Typically, regulatory fines within the tech sector are insufficient to garner significant attention, but this particular fine is expected to have a substantial impact.
The E-commerce Rollup Strategy and Unicorn Status
A notable trend has emerged regarding startup funding and valuation. It appears that simply informing investors of plans to raise capital for launching or consolidating e-commerce brands within a specific market can result in achieving "unicorn" status – a valuation exceeding $1 billion.
This observation is based on TechCrunch’s coverage of numerous funding rounds in the e-commerce rollup sector. The rapid ascent of Merama, which attained unicorn status in under a year, exemplifies this phenomenon.
Upcoming Changes to Gig Labor Regulations in the EU
Companies operating within the European Union that rely on contract labor should prepare for potential changes. New legislation is anticipated to reshape the landscape of the gig economy in the coming years.
As reported by Natasha Lomas, EU lawmakers have formally proposed legislation aimed at enhancing the working conditions for platform workers throughout the EU. This indicates a move towards greater regulation and worker protections within the gig economy.
Startups & Venture Capital Updates
Before reviewing today’s startup news, consider this additional data point. While Silicon Valley’s dominance as a startup hub faces challenges domestically and internationally, one aspect remains relatively stable. Specifically, the funding environment for women-led, business-focused software companies persists. Considering the substantial proportion of the startup ecosystem these businesses represent, the existing gender disparity is significant.
(A note of appreciation to our own Ron Miller for his ongoing coverage of inequities within the startup landscape is warranted.)
Funding Highlights
- Robotic Research Secures Significant Funding: The company has raised $228 million in funding. Robotic Research specializes in the development of autonomous vehicles for both on- and off-road use, primarily for the Department of Defense. This substantial investment represents a considerable influx of capital into the autonomous vehicle sector. It is hoped this funding will translate into tangible advancements in addressing the complex challenges the startup is focused on.
- Petra’s Innovative Naming Strategy: When launching a startup focused on underground drilling technology, selecting an appropriate name is crucial. The founders of Petra opted for “Petra,” a fitting choice. They also named their robotic system “Swifty.” The company recently secured $30 million in Series A funding to support their work in this specialized field.
- Ledger Introduces Crypto Debit Card: A common challenge for cryptocurrency holders is converting digital assets into spendable currency. Ledger is addressing this issue with the launch of a new debit card. This will enable crypto owners to utilize their wealth in everyday transactions. Coinbase offers a comparable product, demonstrating the growing demand for such solutions.
- Deed Enhances Corporate Giving with $10M Investment: Many organizations implement corporate giving programs, often including employee donation matching. Deed aims to expand the scope and effectiveness of these initiatives. The startup has recently received $10 million in funding to further its mission.
- Multiple Rounds in the $8.5M - $8.7M Range: It is unusual to observe multiple funding rounds with nearly identical amounts below $10 million in a single day. Today, we have three such instances. Bird Buddy secured $8.5 million for its innovative smart bird feeder technology. Airplane also raised $8.5 million to support its developer workflow automation service. Finally, Mio obtained $8.7 million to facilitate interoperability between enterprise messaging platforms like Slack and Teams.
- Rho Experiences Rapid Growth and Secures Series B: The corporate spend product offered by Rho is experiencing significant and rapid scaling. This growth has attracted investors, resulting in a $75 million Series B funding round.
- Resolve Expands B2B BNPL with $25M Funding: The intersection of B2B and Buy Now, Pay Later (BNPL) is a developing area within fintech. Resolve, a spinout from Affirm, is pioneering this space. The company recently raised $25 million to bring BNPL payment solutions to the business-to-business market.
Usage-Based Pricing: A Holistic Organizational Strategy
Image Credits: We Are (opens in a new window) / Getty ImagesOpenView partner Kyle Poyar, in a recent contribution to TechCrunch+, details the reasoning behind why the implementation of usage-based pricing necessitates a comprehensive, company-wide commitment and a departure from traditional SaaS measurement approaches.
This isn't a temporary trend; the increasing adoption of UBP is driven by demonstrably improved growth and customer retention figures observed in SaaS businesses that employ it.
Poyar highlights successful implementations by industry leaders such as Twilio, Stripe, and AWS, illustrating how companies utilizing UBP effectively “share in the prosperity of their customers.”
This model also mitigates the potential for accumulating a large number of customers who do not contribute positively to profitability.
UBP fundamentally alters the relationship between provider and client.
Instead of fixed fees, costs fluctuate directly with consumption.
(TechCrunch+ is a membership program designed to empower founders and startup teams. Registration can be completed here.)
The Benefits of Aligning Pricing with Value
A key advantage of usage-based pricing is its inherent alignment with customer value.
Customers only pay for what they actually use, fostering a sense of fairness and transparency.
This approach can lead to increased customer satisfaction and loyalty.
Rethinking Traditional SaaS Metrics
Traditional SaaS metrics, such as Monthly Recurring Revenue (MRR), may become less relevant in a UBP model.
Focus shifts towards metrics that reflect actual usage and value delivered.
Companies must adapt their analytics and reporting to accurately measure the success of UBP.
Reducing Customer Acquisition Costs
By attracting customers who are actively using the product, UBP can contribute to lower customer acquisition costs.
The focus shifts from simply acquiring customers to acquiring engaged customers.
This results in a more efficient and sustainable growth strategy.
Mitigating Churn
When customers perceive a direct correlation between value received and cost incurred, churn rates tend to decrease.
Customers are less likely to cancel a service they find essential to their operations.
This is particularly true for services that scale with the customer’s growth.
Big Tech Inc.
The phrase “hanging out” while streaming content has become commonplace, but the evolution continues. A recent partnership between Tinder and Spotify introduces a new dimension, allowing users to preview a potential match’s chosen song directly on their profile.
Spotify and Chill Evolution
This integration prompts speculation about how quickly similar features will emerge across other platforms. The ability to share musical tastes adds another layer to online interactions.
Netflix Launches "Tudum"
Netflix has introduced a new website, “Tudum,” named after the sound its logo makes. This platform will serve as a hub for official news regarding show renewals and release dates.
The launch of Tudum may impact the search engine optimization (SEO) performance of articles focused on “What to Watch on Netflix” and similar queries.
GM Secures EV Supply Chain
Transitioning to electric vehicle (EV) production requires careful planning, particularly regarding the sourcing of essential materials. Obtaining the raw components for battery manufacturing presents significant challenges.
GM has recently focused on securing a domestic supply of rare earth minerals, alloys, and finished magnets crucial for EV motor construction.
Meta Enhances Facebook Live
Meta has released new tools designed to improve the experience for users of Facebook Live. These updates aim to provide enhanced functionality and control during live broadcasts.
The new tooling will likely empower content creators and enhance audience engagement on the platform.
TechCrunch Seeks Growth Marketing Recommendations
TechCrunch is currently soliciting recommendations for skilled growth marketers. Expertise in areas like SEO, social media marketing, and content creation is highly valued.
The platform is looking for professionals who can demonstrate a track record of success in driving growth for businesses.
Growth Marketer Survey
If you are a growth marketer, TechCrunch encourages you to share a survey with your clients. This survey aims to gather insights into positive client experiences and the reasons behind them.
Client feedback will be used to inform TechCrunch’s coverage of the growth marketing landscape.
Leveraging Customer Research
Interested in understanding how customer research influences TechCrunch’s reporting? An article by Lucy Heskins, available on TechCrunch+, titled “How to acquire customer research that shapes your go-to-market strategy,” provides valuable insights.
This piece details the importance of gathering and utilizing customer feedback to refine and optimize go-to-market approaches.
The goal is to identify and highlight exceptional growth marketers based on direct client testimonials.
SEO, content strategy, and social media proficiency are key areas of focus for these recommendations.
