Byju's Data Breach: Student Data Exposed - Daily Crunch

Daily Crunch: June 30, 2021

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Greetings, and welcome to the Daily Crunch for June 30, 2021. This marks the final day of the second fiscal quarter.

Quarterly and Yearly Milestones

Today also concludes the first six months of the year, representing the midpoint for many New Year’s resolutions. The commencement of Q3 signifies the approaching earnings report season for numerous businesses.

Recent IPOs

Several companies completed their initial public offerings to conclude the second quarter, notably including Didi and SentinelOne.

US vs. China Pricing

TechCrunch’s analysis reveals noteworthy disparities in valuation between companies originating from the United States and those based in China. These pricing differentials are currently under observation.

— Alex

TechCrunch's Leading Three Stories

Here's a summary of the top three tech news items reported by TechCrunch today, covering regulatory actions, venture capital dynamics, and data security concerns.

Robinhood Faces Regulatory Penalties

Robinhood is facing a substantial financial penalty of $70 million in fines and penalties. This action was taken by the Financial Industry Regulatory Authority (FINRA) prior to the company’s anticipated IPO filing.

FINRA cited “widespread and significant harm suffered by customers” as the basis for these penalties. The timing coincides with expectations for Robinhood to publicly file its IPO documentation following a robust first quarter performance.

Intrigue in the Venture Capital World

A noteworthy event unfolded at SF-based Hinge Health, as reported by TechCrunch’s Natasha Mascarenhas. The company removed a board member after discovering their investment in a perceived competitor.

This situation highlights the current power dynamic in the venture capital landscape. It suggests a trend towards greater founder control, a shift from the historical dominance of venture capitalists.

Data Breach Affects Byju’s Users

An incident involving a data breach has compromised user information belonging to Byju’s, a highly valued Indian edtech company.

The breach originated with Salesken.ai, a startup providing “customer relationship technology.” An exposed server at Salesken.ai led to the unauthorized access of Byju’s user data. Despite the explanation, the incident remains a serious security lapse.

The compromised data was held by Salesken due to the nature of their services, which assist companies in managing customer interactions. However, this does not mitigate the responsibility for securing sensitive information.

Startups and Venture Capital Updates

Today’s startup news begins with a focus on the expanding space industry, featuring three noteworthy developments.

• Virgin Orbit’s First Commercial Launch: Despite the presence of established players like SpaceX, increased competition within the space sector is beneficial. Virgin Orbit’s successful commercial launch demonstrates the growing accessibility of orbital technology.
• Gilmour Space Secures Series C Funding: Gilmour Space Technologies has successfully raised $46 million in a Series C funding round. This capital will be used to facilitate launches planned for the coming year. Their rockets are designed with a smaller form factor compared to conventional models.
• Rocket Factory Expansion: The 3D rocket-printing company, which previously secured $650 million in Series E funding, is constructing a substantial 1,000,000 square foot production facility. This expansion signals a move towards more affordable rocket technology.

Shifting our attention to the creator economy, here are some recent highlights:

• Pietra’s $15M Raise: Pietra has secured $15 million in funding to empower creators in developing and launching their own product lines. This investment reflects the ongoing belief in the potential of creators to build independent businesses.
• The Realities of the Passion Economy: While the creator economy shows significant promise, success isn’t guaranteed. The Equity podcast recently explored the challenges and nuances of this sector, featuring insights from Alexis Gay.

Beyond these key areas, several other startups garnered attention today:

• $5M for LGBTQ+ Focused Neobank: Daylight, a neobank specifically designed to serve the queer community, has raised $5 million. This targeted approach differentiates it from broader neobanking services, joining other niche fintech startups.
• Zipline’s $250M Funding Round: Zipline, initially known for drone delivery of medical supplies in Africa, has secured $250 million in funding. The company is expanding its technology and scope of operations.
• Gusto’s Technology Spin-Out: Gusto, the HR-tech unicorn, is now offering components of its core technology for integration into other platforms. This allows other companies to embed payroll and related services. However, industry observers are eagerly anticipating a potential S-1 filing from Gusto.

Enhancing Click-Through Rates: 7 Effective Ad Types

A common challenge for nascent companies stems from a lack of dedicated marketing expertise within the founding team. Consequently, growth initiatives often become routine and yield limited results.

Achieving improved click-through rates is a universal goal, yet crafting advertisements that truly “distinguish themselves” can be precarious, particularly without a solid understanding of best practices. This article, contributed by Demand Curve, presents seven actionable strategies to elevate CTR, readily implementable within your startup.

Leveraging Social Proof in Advertising

Consider this approach: When positive mentions of your brand appear online, proactively request permission to feature screenshots of these reviews within your advertisements. Testimonials represent a powerful form of social proof, demonstrably increasing conversion rates, and are especially impactful in retargeting ads.

By showcasing genuine customer feedback, you build trust and credibility with potential clients.

Previously this week, we published an article focused on optimizing email marketing strategies for early-stage startups. Further expert guidance on growth tactics will be shared shortly, so please remain attentive.

(Extra Crunch is our subscription service designed to empower founders and startup teams. Registration is available here.)

Strategies for Boosting CTR

• Utilize Customer Testimonials: Incorporate screenshots of positive online reviews into your ad campaigns.
• Focus on Retargeting: Employ testimonials specifically within retargeting advertisements for maximum impact.
• Prioritize Social Proof: Leverage the power of social validation to build trust and encourage clicks.

Remember, a data-driven approach is crucial for optimizing ad performance. Continuously test and refine your strategies based on results.

Effective advertising requires a strategic mindset and a commitment to understanding your target audience.

Big Tech Inc.

Today’s update features news from three of the largest companies in the technology sector. We will present these stories in order, starting with the company possessing the highest market capitalization.

Amazon's Regulatory Concerns

Amazon is actively opposing increased regulation, and indications suggest a degree of apprehension regarding potential oversight. This assessment stems from reports detailing the company’s efforts to influence the position of the current Federal Trade Commission (FTC) chair.

Initial reactions to Amazon’s objections and requests are largely dismissive. The company’s arguments appear to lack substantial merit.

Instagram's Paid Follower Feature

Instagram is developing a feature mirroring Twitter’s “Super Follows” functionality. This new tool will enable content creators to share exclusive content within their Instagram Stories, accessible only to paying subscribers.

The concept involves providing content specifically for supporters. This initiative is reminiscent of similar services already in existence.

A key distinction lies in content policies; Twitter permits adult content, while Instagram maintains a prohibition on such material.

Twitter and NFTs

Twitter has entered the Non-Fungible Token (NFT) space. This move is viewed by some as a sign of declining innovation.

Major social networks often represent a trend following approach within the technology landscape. They tend to adopt technologies after they have gained traction elsewhere, potentially diminishing their perceived coolness.

The introduction of NFTs to Twitter is met with skepticism, raising questions about the platform’s strategic direction.

TechCrunch Seeks Growth Marketing Professionals

TechCrunch is currently soliciting recommendations for skilled growth marketers.

Expertise in areas such as SEO, social media marketing, and content creation is highly valued.

Growth Marketer Survey

Growth marketers are encouraged to share a survey with their clients.

The purpose of this survey is to gather feedback regarding positive client experiences and the reasons behind them.

Insights into TechCrunch’s Coverage

Those interested in understanding how these surveys influence TechCrunch’s reporting can review an interview.

Miranda Halpern interviewed Kathleen Estreich and Emily Kramer, the co-founders of MKT1, in a piece titled “MKT1: Developer marketing is what startup marketing should look like.”

This interview provides valuable context on the criteria used to evaluate and feature growth marketing professionals.