Jeff Bezos Flies to Space: Blue Origin's First Crewed Flight

Daily Crunch: July 20, 2021

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Market Fluctuations and Bezos' Departure

Greetings, and welcome to today’s Daily Crunch for July 20, 2021. Recent market activity has been characterized by volatility. Stock values experienced a decline yesterday, but have since shown signs of recovery today.

Similar instability has been observed within the cryptocurrency markets, with prices fluctuating considerably. This period of change mirrors, in a way, the planned transition of Jeff Bezos from his leadership role.

Further details regarding these developments, and Bezos’ departure, are provided below. — Alex

Recent Developments in Tech

Bezos’ Suborbital Flight: Today marked a significant moment in private space exploration as Jeff Bezos, the founder of Amazon, completed a brief journey beyond Earth’s atmosphere. A live broadcast of the event, facilitated by his company Blue Origin, was provided. While the presentation leaned towards promotional efforts, the mission was ultimately successful, with all crew members and the rocket returning safely. The astronauts expressed considerable excitement following their experience.
Growth in the European Startup Ecosystem: Europe is currently recognized as one of the most dynamic startup hubs globally. Venture capital firms interviewed by TechCrunch anticipate continued robust investment activity throughout the remainder of 2021. This year is projected to establish new benchmarks for capital acquisition within the European startup landscape.
Square’s Expansion into Business Banking: Square is leveraging its extensive small business client base and ambitious fintech goals to launch a dedicated business bank. This move raises the question of how long it will take for Square to evolve into a comprehensive financial institution serving both individual and corporate clients. A common trajectory for fintech companies is to expand their services across the entire financial spectrum, or ultimately cease operations.

Startups & Venture Capital Funding

A significant number of funding announcements were made today. TechCrunch reported on a large portion of these, though a complete overview isn't feasible within this space. Following an assessment of the Chinese startup landscape, here’s a concise summary of the latest developments.

China's Tech Regulatory Environment: Concerns exist regarding the evolving regulatory climate in China. Rita Liao provides a comprehensive analysis of the situation surrounding Didi and other U.S.-listed Chinese companies. The core issue centers on data, which is increasingly recognized as a critical element in geopolitical strategy. European nations anticipated this trend previously.

Below is a brief rundown of recent venture capital activity:

Combating Counterfeit Pharmaceuticals in Africa: RxAll secured $3.15 million in funding to address the issue of counterfeit drugs and their associated health risks. Established in 2016, the company is dedicated to fighting the proliferation of fake medications.
EV Charging Infrastructure: A deal between ChargePoint and has·to·be has been finalized, with ChargePoint acquiring the latter for $295 million. This acquisition is expected to bolster ChargePoint’s expansion beyond the North American market within the electric vehicle charging sector.
Democratizing Wealth Management: Titan aims to replicate Robinhood’s success in retail investing by making active wealth management more accessible. The company recently raised $58 million, following a $12.5 million Series A round earlier this year.
Innovative Baby Food Solutions: Little Spoon received $44 million in funding to support its direct-to-consumer baby food subscription service, alongside the sale of vitamins and related products. The company focuses on simplifying mealtime for parents.
Advancements in Robotic Welding: Path Robotics, based in Ohio, completed a $100 million Series C funding round. This follows a $56 million Series B raise in May. The company specializes in the development of welding robots.
Financing for SaaS Revenue: Capchase secured $280 million in funding (a combination of debt and equity) to expand its business of providing upfront capital in exchange for future software revenues. Pipe is another key player in this market.

Concluding our coverage of startup and venture capital news, here are updates regarding venture capital firms investing in startups:

Hyper’s Investment Strategy: Hyper, a blend of venture firm and venture-backed media group, is actively seeking opportunities to deploy capital and leverage its network. Further details are available from Matthew Panzarino at TechCrunch.
Pillar VC’s New Funds: Pillar VC has raised new capital through two funds: $169 million for Pillar III and $23 million for its second fund. The firm plans to invest across various sectors, including SaaS and hardware, and is known for its practice of acquiring common stock in the companies it supports.

For those involved in operations, TechCrunch features an interview with Maya Moufarek, founder of Marketing Cube. She brings over 15 years of experience from companies like Google and American Express to her growth consultancy, offering insights into startup marketing strategies.

The 6-Year Journey of Building an AI Unicorn

It is uncommon for startups to successfully launch with the initial product concept conceived by their founders.

Currently, Tractable is recognized for its technology enabling drivers to submit vehicle photos post-accident for AI-powered damage evaluation. Interestingly, their initial revenue came from a client utilizing Tractable for plastic pipe weld inspection.

Ironically, this initial client terminated their contract just as the founders were securing their first funding round.

Co-founder Alex Dalyac notes that they “found success with car insurance,” identifying it as “a large, inefficient sector ripe for innovation.”

In a guest contribution to Extra Crunch, he details several key lessons learned over the past six years while scaling a unicorn, offering valuable insights for founders across various industries. The first step, according to Dalyac?

“Prioritize finding co-founders who possess complementary skills and with whom you can forge strong, personal relationships,” he suggests.

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

Big Tech Inc.

Recent developments highlight ongoing shifts within major technology companies.

Facebook's Expansion into Newsletters

Facebook is actively expanding its presence in the newsletter market. Its Bulletin platform has recently onboarded 31 additional writers.

This substantial addition demonstrates a continued investment in the newsletter format.

The company is strategically leveraging the service to promote adoption of Facebook Pay and achieve other business objectives.

For writers, the competition among large corporations to attract talent represents a notable change in dynamics.

Venmo Addresses Privacy Concerns

Venmo has acknowledged the issues associated with its previously default-public activity feed.

The controversial feature, which displayed transactions publicly, has been modified.

Users will now primarily see a feed focused on activity from their connections, representing a significant improvement in privacy.

YouTube Introduces 'Super Thanks'

YouTube is now enabling viewers to directly support creators through a new feature called Super Thanks.

This allows users to provide a one-time tip ranging from $2 to $50 as a gesture of appreciation.

The introduction of Super Thanks is expected to be particularly beneficial for musical artists and groups utilizing the platform for content distribution.

It provides an additional avenue for monetization beyond traditional advertising revenue.

Insights from TechCrunch Experts: Growth Marketing

daily crunch: jeff bezos and 3 guests share blue origin’s first crewed flight

Startup founders are being contacted to identify their preferred sources for current growth marketing strategies. Participation in the survey can be completed at this link.

A sample of the feedback gathered is presented below.

Marketing Professional: Illia Termeno, the founder of Extrabrains.

Referral Source: Anonymous.

Feedback: “The expertise offered is broad, yet deeply focused on strategic planning and achieving sustainable return on investment.”

Key Attributes Highlighted

The testimonial emphasizes a specific skillset. This skillset is described as T-shaped expertise.

This signifies a combination of broad knowledge and specialized depth. It’s particularly valued for its impact on long-term results.

Survey Invitation

Founders are encouraged to share their insights. The survey aims to compile a resource of leading growth marketing authorities.

Your contribution will help identify the most effective practices currently available. Access the survey through the provided link.

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