Siemplify Acquired by Google for $500M

Daily Crunch: January 4, 2022

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Greetings, and welcome to the Daily Crunch for January 4, 2022. It was observed yesterday that coverage of startup activity was initially slow at the beginning of the year.

However, this trend has since shifted. The following news includes initial public offering announcements, developments in robotics, updates from a canned-water startup, and details of recent acquisitions, among other items.

Key Highlights

The pace of reporting has notably increased. A variety of significant events are now unfolding across the tech landscape.

IPO News: New companies are entering the public market.
Robotics: Advancements continue to be made in the field of robotics.
Startup Spotlight: A canned-water startup is gaining attention.
Acquisitions: Several companies have been acquired recently.

These developments represent a dynamic start to the year for the technology sector. Further details on each of these stories are available below.

—Alex

TechCrunch's Leading Three Stories

The initial public offering (IPO) season for technology companies has officially begun with Justworks announcing its price range this morning.

Estimates suggest that Justworks, a human resources platform geared towards small and medium-sized businesses (SMBs), could achieve a valuation exceeding $2 billion when trading commences later this month.

This pricing appears favorable for the company’s investors.

Controversy Surrounds 8VC’s Joe Lonsdale

Following discussions regarding investment disparities among different demographics, Joe Lonsdale of 8VC has attempted to clarify his statements made on Twitter.

However, these efforts have largely been unsuccessful, as his original viewpoints seem to remain consistent.

Industry professionals within the venture capital space have expressed their dissatisfaction, as reported by Natasha.

Google Acquires Israeli Cybersecurity Firm

Confirmation has arrived regarding reports of Google’s acquisition of Siemplify, an Israeli cybersecurity startup.

Sources familiar with the transaction have disclosed the purchase price to be $500 million, despite Google’s reluctance to publicly confirm the exact amount.

This acquisition strengthens Google’s capabilities in the cybersecurity sector.

Key Takeaways

Justworks IPO: The company’s valuation is projected to surpass $2 billion.
Joe Lonsdale’s Statements: His comments on investment totals have sparked controversy within the venture capital community.
Google’s Acquisition: The $500 million purchase of Siemplify expands Google’s cybersecurity portfolio.

Startups and Venture Capital Updates

Let's begin with some observations regarding the startup landscape. Despite recent declines in the public stock market, private market funding appears to be continuing at a robust pace. This discrepancy presents a potential area of risk for investors. Furthermore, analysis of the African fintech sector reveals a clear dominance by a single startup category. Finally, Refinery Ventures has announced a new fund specifically designed to support startups as they progress towards their Series A funding round, as reported by Christine Hall.

Here’s a rundown of recent developments:

The Cost of Canned Water: The recent $75 million funding round secured by Liquid Death raises a pertinent question: why is selling canned water so expensive? While the product itself is perfectly acceptable, and the death-themed branding appeals to a certain aesthetic, the substantial capital influx into businesses with limited technological innovation is noteworthy. However, the brand’s strong embrace of metal music, as evidenced by its merchandise, is commendable.
Robotic Assistance for the Home: Labrador Systems is nearing completion of a long-term project – a robot designed to transport items within a home environment. TechCrunch has covered this development. Initial previews of the device date back to 2020, indicating a considerable wait for its release. The company’s Retriever robot is intended to provide “assistance for elderly users and people with limited mobility,” a truly valuable application.
Skydio’s Enhanced Drone Technology: U.S.-based drone manufacturer Skydio has released an updated version of its Skydio 2 drone, now known as the Skydio 2+. This new model boasts extended flight range, improved battery performance, and enhanced software capabilities. Skydio initially gained recognition for its drones’ ability to autonomously follow and film their operators.
Calm’s Expansion Beyond Meditation: Calm, a leading meditation app, is broadening its scope to encompass other aspects of self-care. This expansion doesn’t involve simply suggesting more relaxation aids; instead, Calm has introduced “Daily Move” videos designed to encourage physical activity among its users. This represents a significant shift for a company traditionally focused on promoting stillness, but it could prove successful given the importance of both physical and mental well-being. The performance of this new content will be closely watched.
Recorded Future Acquires SecurityTrails: A noteworthy acquisition has taken place in the cybersecurity space. Recorded Future, a threat intelligence firm, has purchased SecurityTrails, a company that, as we’ve reported, “collects and maintains vast amounts of current and historical internet records, such as domain name records, registration data and DNS information, giving organizations visibility into what their threat attack surface is.”
Atmosphere Secures $100 Million in Funding: This startup is creating an interesting niche. Atmosphere develops video content – often without audio – for display in public venues like bars, restaurants, and medical offices. Consider it the visual equivalent of the music commonly heard in elevators. The company’s recent funding round comprised 80% equity and 20% debt.

In predictable news, Starlink is reducing its workforce in India following a directive to cease operations without the necessary licensing.

Enterprise Predictions for 2022: An AWS Acquisition and More

Image Credits: Tyler E Nixon / Getty Images

TechCrunch’s Ron Miller recently presented his forecasts concerning enterprise-level businesses for the current year.

He highlighted the inherent difficulty in predicting enterprise trends, referencing unforeseen events of 2021.

Specifically, the acquisition of Slack by Salesforce for nearly $28 billion, and the transition of Amazon’s leadership from Jeff Bezos to Andy Jassy, were largely unexpected.

Ron acknowledged the rapid pace of technological change, making accurate predictions a significant challenge.

His predictions, offered with necessary disclaimers, consider persistent supply chain disruptions, the growing influence of regulatory bodies in both Europe and the United States, and the dynamics of a mergers and acquisitions landscape characterized by substantial financial investments.

The most assertive of his predictions centers around a potential acquisition?

(TechCrunch+ is a membership program designed to support founders and startup teams. Registration is available here.)

Key Areas of Focus in 2022

Supply Chain Challenges: Ongoing disruptions are expected to continue impacting businesses.
Regulatory Scrutiny: Increased oversight from European and U.S. regulators will shape enterprise strategies.
M&A Activity: The market for mergers and acquisitions will likely involve deals valued in the billions of dollars.

Miller’s analysis suggests that the enterprise technology sector will be defined by adaptation and significant financial activity.

The sheer scale of potential M&A deals indicates a competitive environment where substantial capital is required to remain relevant.

AWS is specifically mentioned as a likely acquirer in this evolving market.

Big Tech Inc. – Recent Developments

Today’s focus centers on two key areas within the Big Tech landscape. The initial discussion concerns Amazon, followed by a comprehensive overview of significant announcements originating from the Consumer Electronics Show (CES) this year.

Kindle’s Position in China

The future of Kindle within China appears increasingly uncertain. Amazon’s e-reader has operated in the Chinese market for a decade, but device availability is now diminishing.

This development aligns with the Chinese government’s broader efforts to regulate media access. Even a limited Kindle library represents a substantial collection of reading material.

Furthermore, the current political climate in China, influenced by the Chinese Communist Party, does not prioritize open exploration of ideas.

Highlights from CES

Several noteworthy announcements emerged from CES this year, showcasing innovation across various sectors.

Intel is reinforcing its commitment to hybrid chip architecture, introducing 28 new 12th-generation Intel Core mobile processors alongside 22 desktop processors.
A collaboration between Mobileye and Zeekr aims to develop an autonomous electric vehicle specifically for the Chinese market.
GE Lighting is expanding its product line to include smart thermostats and security cameras, adding to its portfolio of intelligent home solutions.
Formlabs is introducing new 3D printers promising up to a 40% increase in printing speed.

Comprehensive coverage of CES 2022 is being compiled and can be found here, offering a detailed look at the event’s key takeaways.

TechCrunch Seeks Growth Marketing Recommendations

daily crunch: israel-based cybersecurity startup siemplify sells to google for $500m

TechCrunch is currently soliciting recommendations for accomplished growth marketers.

Specialized skills sought include proficiency in SEO, social media marketing, and content creation.

Growth Marketer Survey

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

TechCrunch aims to gather insights into positive client experiences and the value provided by these marketing professionals.

Insights from TechCrunch+

Further details regarding the purpose of these surveys can be found in a TechCrunch+ article authored by Miranda Halpern.

The article, titled “10 growth marketing experts share their 2022 predictions and New Year’s resolutions,” provides context on how the survey data will influence TechCrunch’s reporting.