Indian Startup Funding: Record $10.46 Billion Raised in H1 2021

Daily Crunch: July 7, 2021

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Greetings, and welcome to the Daily Crunch for July 7, 2021. Today presented a substantial amount of news, encompassing worldwide startup funding updates, legal challenges directed at technology firms, and developments concerning unicorn liquidity in Europe.

Key Highlights of the Day

The day was particularly eventful. It featured a broad spectrum of news, ranging from financial activity in the startup ecosystem to legal disputes and the financial status of high-growth companies.

Don't forget that Early Stage is scheduled for tomorrow. We look forward to seeing you there!

— Alex

Startup Funding saw considerable movement globally, indicating continued investor confidence. Several companies announced successful fundraising rounds.

Legal Battles involving tech companies continued to emerge, with various lawsuits being filed. These legal actions represent ongoing challenges for the tech industry.

European Unicorns experienced shifts in liquidity, reflecting the dynamic nature of the European tech market. This is an important indicator of the region’s economic health.

TechCrunch's Top 3.5

Donald Trump's Legal Challenges and Fundraising: The former President of the United States, Donald Trump, drew considerable criticism today with the announcement of legal action against prominent social media platforms.

His stated justifications were swiftly dismissed as unfounded. However, Trump is actively leveraging this situation to solicit donations, framing his efforts as a defense against perceived injustices from private companies and the media.

The core motivation behind this public dispute appears to be financial gain. He is seeking support from those aligned with his views.

The Collapse of the Microsoft-U.S. Military Cloud Contract

Yesterday, reports surfaced regarding the termination of the substantial cloud computing agreement between Microsoft and the U.S. military. Ron Miller subsequently analyzed the reasons for this outcome.

A key factor was the attempt to designate a single vendor for the $10 billion contract, a strategy that ultimately proved unsustainable. The Department of Defense may now explore a multicloud solution.

Several emerging companies could potentially assist in implementing such an approach.

India's Rapidly Expanding Startup Landscape

Manish Singh, a TechCrunch correspondent, has consistently provided insightful coverage of the Indian startup market. His recent article, “Dispatch from Bangalore,” highlights the remarkable growth within the region.

Notably, India witnessed the emergence of 16 unicorn companies this year. Startups in the country secured $10.46 billion in funding during the first half of 2021.

These figures demonstrate the dynamic and rapidly evolving nature of India’s tech ecosystem.

European Unicorns and Exit Strategies

While U.S. and European companies are increasingly pursuing initial public offerings (IPOs), the trend of Chinese companies going public has diminished.

The surge in Special Purpose Acquisition Companies (SPACs) has largely been concentrated in the United States. TechCrunch is investigating whether this pattern is poised to shift.

The article explores the strategies European unicorns are employing to achieve successful exits.

$100 Million Investment in mmhmm

mmhmm, the company known for its innovative Zoom enhancements developed during the pandemic, has secured a $100 million funding round.

This substantial capital injection provides mmhmm with significant resources for future development and expansion. The company’s ability to effectively utilize these funds will be closely watched.

Darrell’s headline for this piece was particularly well-received, earning him recognition for its quality.

Startups and Venture Capital Updates

The TechCrunch Top 3 has been broadened to include five noteworthy entries, yet a substantial amount of news still required coverage. Below is a summary of recent activity in the startup and venture capital landscape.

Virtual Reality Surgical Training

Osso VR, a San Francisco-based company, has secured $27 million in funding. This investment will be used to revolutionize surgical education through a virtual reality platform.

The platform enables surgeons to practice with new medical devices in a three-dimensional environment. The goal is to accelerate the training process and improve surgical skills.

Developer Tooling and Cybersecurity

r2c, a startup focused on SaaS solutions built around the Semgrep open-source project, has raised a preemptive Series B round. The company is developing tools to enhance developer cybersecurity practices.

This funding round demonstrates growing interest in securing the software development lifecycle. The tools aim to proactively identify and address vulnerabilities.

Unit21 Secures Series B Funding

Unit21 has announced a $34 million Series B funding round led by Tiger Global Management. This investment values the company at approximately $300 million.

The no-code, anti-fraud startup experienced a Series A funding round less than a year prior. This rapid growth highlights the increasing demand for fraud prevention solutions.

Data Privacy Concerns in Opioid Treatment Apps

Recent reports have raised concerns regarding data collection practices within opioid-treatment applications. TechCrunch expressed reservations about the extent of data being gathered by these apps.

The issue underscores the importance of data privacy and security in the healthcare technology sector. Users should be aware of how their personal information is being utilized.

The Technological Landscape of Pakistan is Experiencing Significant Growth

Data indicates that Pakistani startups are poised to surpass the total funding received over the last five years, all within the current year. This assessment comes from Mikal Khoso, a partner at Wavemaker Partners specializing in early-stage investments.

Notably, a substantial amount of this investment is originating from international sources. These investors span Asia, the Middle East, and include well-known firms based in Silicon Valley, as Khoso points out in a recent contribution to Extra Crunch.

Several key elements are driving this increased investor confidence. These include the swift expansion of mobile network access, a stabilization of the security environment, and crucial adjustments to legal and regulatory frameworks. These changes are fostering a more supportive climate for startups and venture capital firms.

Khoso provides an overview of Pakistan’s tech sector, highlighting domestic companies competing in areas like grocery delivery services, online retail, ride-sharing, and other emerging markets. He also addresses the ongoing obstacles that remain.

According to Khoso, the sectors most likely to attract top entrepreneurial talent and significant investment in the coming years are fintech, e-commerce, and edtech.

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

Big Tech Inc.

Remaining with us? Excellent. Further updates are available. Let's focus on major corporations:

Satellite SPACs: A New Development

Attention everyone: both Satellogic and Planet are preparing to become publicly traded companies through special-purpose acquisition companies (SPACs). While SPACs may be a familiar topic, these particular agreements represent significant advancements in the space technology sector.

Outbrain Secures $200M Pre-IPO Funding

A substantial pre-initial public offering (IPO) funding round has been completed by Outbrain, amounting to $200 million. As previously noted by TechCrunch, Outbrain is an advertising technology firm specializing in the delivery of sponsored content appearing beneath news articles.

Increased Tech Regulation in India

The evolving regulatory landscape for technology companies in India warrants close observation. Developments in this region are poised to have a notable impact on the industry.

Key Takeaways

• Satellite SPACs represent a growing trend in the space technology market.
• Outbrain’s $200M funding signifies continued investor interest in adtech.
• Changes in India’s tech oversight are crucial to monitor.

TechCrunch Seeks Growth Marketing Professionals

TechCrunch is currently soliciting recommendations for accomplished growth marketers. Expertise in areas like SEO, social media marketing, and content creation is highly valued.

Growth marketers are encouraged to share a survey with their clients. We aim to gather feedback regarding positive client experiences and the value provided.

Survey Purpose and Coverage

The purpose of this initiative is to inform TechCrunch’s editorial coverage. Insights gained will contribute to a more comprehensive understanding of the growth marketing landscape.

Those interested in the methodology behind these surveys can review an interview conducted by Anna Heim with Peep Laja. The interview highlights the importance of proactive narrative development for competitive advantage.

Key Takeaway from the Interview

Laja emphasized that establishing a strong brand narrative should begin from the very outset of a business venture. This proactive approach is crucial for maintaining a leading position within the market.

Building a compelling narrative from day one is essential to outpace competitors. This strategy allows for greater control over perception and market positioning.

TC Eventful: Exclusive Ticket Offer

For those anticipating attendance at TC Early Stage – Marketing & Fundraising, an opportunity has arisen. We are extending a complimentary ticket to the first 10 readers of Daily Crunch.

The event commences tomorrow, and securing your place is now within reach. Access the event registration via this link and choose the complimentary ticket option to claim your free pass.

Prompt action is advised, as availability is limited to the initial 10 applicants. Once these tickets are claimed, the offer will expire. Register today to avoid disappointment.