BrainQ Raises $40M for Stroke Therapy Tech | Daily Crunch

Daily Crunch: August 16, 2021

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Welcome to Daily Crunch

Greetings, and welcome to the Daily Crunch for August 16, 2021. Despite the numerous challenges facing the globe, our focus remains on technology news and developments.

Our thoughts are with everyone navigating difficult times, and we express hope for positive change in the days ahead. — Alex

TechCrunch's Leading Three Stories

Here's a summary of the top three tech stories currently featured on TechCrunch, offering insights into autonomous vehicles, electric car safety, and the broader startup ecosystem.

Nuro's Challenge to Industry Leaders

The development of commercially viable self-driving vehicles represents a significant undertaking, attracting substantial investment and fostering intense competition. Various companies are pursuing distinct strategies in their quest for autonomous driving capabilities.

Nuro is a key player in this arena, and TechCrunch’s exclusive EC-1 report provides an in-depth look at their approach. This report offers valuable insights into their progress and vision.

Tesla's Autopilot System Faces Scrutiny

Concerns surrounding Tesla’s Autopilot system have prompted an official investigation following a series of incidents. These collisions involved Tesla vehicles striking stationary emergency responder vehicles.

The company’s driver-assistance program is believed to be a contributing factor in these events. The outcome of this inquiry may be viewed differently depending on investment in Tesla, but it highlights the complexities of deploying self-driving technology in real-world conditions.

Positive Outlook for Emerging Startups

As prominent U.S. "unicorn" companies – those valued at $10 billion or more – secure substantial new funding rounds, questions arise regarding the implications for earlier-stage startups.

TechCrunch analyzed this trend and determined that the news is generally positive for startups and their founders. Increased investment at the higher end of the market often creates a ripple effect, benefiting the entire startup landscape.

Here’s a breakdown of the key takeaways:

• Increased funding for unicorns signals a healthy investment climate.
• This positive trend extends to startups at all stages of development.
• Founders can anticipate greater opportunities for securing capital.

Startups & Venture Capital Updates

Guilded's Acquisition by Roblox: Following Microsoft's unsuccessful attempt to acquire Discord, Roblox has successfully purchased Guilded. While Guilded operates on a smaller scale than Discord, both companies compete within the same market segment.

This acquisition demonstrates Roblox’s strategic interest in the gamer communication space. Roblox, benefiting from substantial financial resources, invested in Guilded, which had previously secured over $10 million in funding during its private operation.

Software Procurement Innovation

Tropic Secures $25M in Funding: The recent pandemic underscored the critical importance of software for business continuity. As operations became increasingly reliant on software, demand surged.

However, businesses are keen to avoid overspending on these essential tools. Tropic addresses this need by offering a platform designed to optimize software spending, and has now received $25 million in funding to further its mission.

Advancements in Headless Commerce

Shopistry Raises $2M for Enhanced E-commerce Solutions: Shopistry is developing a modular e-commerce platform intended to surpass existing headless commerce options.

Despite facing competition from established players like BigCommerce and Shopify, Shopistry aims to disrupt the market with its innovative approach. It’s important to remember that even industry giants began as small startups.

Revolutionizing Stroke Rehabilitation

BrainQ's Breakthrough in Stroke Therapy: At-home stroke rehabilitation startup BrainQ has successfully raised $40 million in funding, as reported by TechCrunch.

The company’s technology utilizes brain stimulation to encourage self-repair in damaged areas. This innovative approach has been recognized by the FDA, which granted it a Breakthrough Device certification.

Entrepreneurial Insights

The Fiveable Story with Amanda DoAmaral: The Found podcast features an insightful interview with Amanda DoAmaral, founder of Fiveable.

The episode details how DoAmaral transformed her dissatisfaction with existing systems into a scalable business venture, offering valuable lessons for aspiring entrepreneurs.

The Nuro EC-1

Google initiated its self-driving car program in 2010, deploying autonomous vehicles on roads in the Bay Area. However, widespread practical implementation was initially projected to be at least ten years distant.

Predictions proved accurate; by 2020, Nuro, headquartered in Mountain View, was evaluating its R2 autonomous vehicle. This marked a significant milestone as the R2 became the first to receive a federal exemption for autonomous operation.

Prior to securing $940 million in Series B funding, Nuro had already established collaborations with major retailers like CVS, Walmart, and Domino’s. These partnerships focused on utilizing the R2 for final-stage delivery services.

Achieving product-market fit wasn't Nuro's initial focus. The company’s founders first needed to address complex technical hurdles, gain regulatory approval, and forge alliances with businesses that directly interact with consumers.

Co-founder Dave Ferguson explains, “Neither I nor JZ viewed ourselves as typical entrepreneurs, nor was launching a company a predetermined life goal.” He continues, “Our motivation stemmed from introspection and a desire to identify the area where we could make the most substantial contribution.”

Part 1: The unexpected origins of Nuro as a competitor to Google’s autonomous vehicle initiative.

Part 2: Examining the reasons why regulatory bodies favor Nuro’s autonomous delivery vehicles.

Part 3: Detailing Nuro’s collaboration and its role as the robotic delivery partner for Domino’s.

Part 4: A glimpse into the anticipated widespread deployment of autonomous delivery robots.

Extra Crunch is our subscription service designed to empower founders and startup teams. Sign up here to learn more.

Big Tech Inc.

A new verification feature is on the horizon for Tinder users globally. Following an initial launch in Japan in 2019, Tinder plans to implement ID verification for all users in the near future.

This development is generally viewed positively, as it has the potential to significantly enhance the app's safety protocols. The delay in implementing this feature, however, raises questions.

Cisco's Acquisition of Epsagon

Technology giant Cisco has acquired Epsagon, an Israeli application monitoring company, in a deal valued at approximately $500 million. This strategic move expands Cisco’s capabilities in the application performance monitoring space.

While Israel is renowned for its cybersecurity expertise, its technological landscape is far more diverse. The acquisition did not significantly impact Cisco’s stock price, which experienced a slight decline alongside other technology shares.

Deals of this magnitude are becoming less frequent, prompting a spotlight on this particular transaction.

Pearson's Data Breach and SEC Settlement

A $1 million fine has been levied against Pearson following a 2018 data breach that compromised the records of millions of students. Critically, this breach was not disclosed to investors at the time.

The Securities and Exchange Commission (SEC) reached a settlement with Pearson regarding this omission. This case underscores the importance of transparency regarding data security incidents.

Privacy breaches are often a consequence of inadequate security measures and a lack of proactive disclosure. This incident serves as a stark reminder of that fact.

TechCrunch Insights: Growth Marketing Professionals

Did you have a chance to review last week’s articles focusing on growth marketing strategies? The previous coverage can be found here.

TechCrunch is currently seeking recommendations for accomplished growth marketers. Expertise in areas such as SEO, social media marketing, and content creation is highly valued!

Growth marketers are encouraged to share this survey with their clientele. We are interested in gathering feedback regarding positive client experiences and the value provided.

Seeking Expert Recommendations

We aim to identify top-tier professionals who demonstrate a proven track record of success.

Client testimonials are crucial in evaluating the effectiveness of different growth marketing approaches.

• SEO specialists who can improve organic search rankings.
• Social media experts capable of driving engagement and brand awareness.
• Content writers skilled in crafting compelling and informative material.

Your input will help us create a valuable resource for businesses seeking to enhance their growth strategies.

Community Engagement

An opportunity to connect with Danny Crichton is scheduled for Thursday, August 19th, at 2:00 PM Pacific Daylight Time, or 5:00 PM Eastern Daylight Time.

This will be a live interview conducted via Twitter Spaces, featuring Sukhinder Singh Cassidy, the author of “Choose Possibility: Take Risks and Thrive (Even When You Fail).”

Sukhinder Singh Cassidy will be discussing insights from her book, offering perspectives on risk-taking and resilience.

The discussion promises to be an engaging exploration of navigating challenges and achieving success, even in the face of setbacks.