Lemonade Data Breach: Security Flaw 'By Design'

Daily Crunch Interruption: A Note from Henry

A summary of TechCrunch’s most significant and noteworthy stories is delivered to inboxes each day at 3 p.m. PDT. You can subscribe to this daily briefing here.

This Daily Crunch dispatch is a departure from the norm, as regular contributor Alex Wilhelm is currently unwell. His return, and the reinstatement of his characteristic comma usage, is anticipated pending recovery from his second vaccination.

Taking the Reins

In Alex’s absence, I have assumed responsibility for curating today’s news. I aim to provide a report that is at least comparable in energy and insight to his usual work.

Let us proceed with the day’s updates, then.

TechCrunch Highlights: Top 3 Stories

Lemonade faced strong criticism from activist short seller Carson Block, who reported a security vulnerability exposing customer account information to the company’s CEO. Block asserts his firm is shorting Lemonade’s stock due to a perceived lack of concern for customer data security.

The assertion is that Lemonade does not prioritize the protection of sensitive personal information. These are significant allegations leveled against the insurance marketplace.

Google is facing a substantial fine in Italy, as reported by Natasha. The Italian antitrust authority has imposed a €100 million penalty (approximately US$123 million) related to its Android Auto practices.

The Italian competition authority, AGCM, alleges that Google obstructed the inclusion of Enel X Italia’s electric car charging application, JuicePass, within the Android Auto platform. Google maintains its innocence regarding these claims.

Yusaku Maezawa, a Japanese billionaire entrepreneur, is planning a lunar mission aboard a SpaceX Crew Dragon, anticipated by 2023. However, his eagerness for space travel is prompting an earlier journey.

Prior to his moon voyage, Maezawa will travel to the International Space Station as a customer of Space Adventures, utilizing a Russian Soyuz rocket launching from Kazakhstan on December 8. He will be accompanied by his production assistant, Yozo Hirano, demonstrating a strong commitment to his team.

Startups and Venture Capital Funding

Nano, a Vietnamese startup specializing in flexible payment solutions, has secured $3 million in seed funding. The company’s application, VUI, enables Vietnamese workers to access their accrued wages on demand.

A $6 million Series A funding round has been announced by Legionfarm, a platform connecting amateur gamers with professional players. This investment will facilitate further development of the gaming experience.

Chef Robotics has successfully raised $7.7 million across pre-seed and seed funding stages. The company is dedicated to automating kitchen processes, aiming to improve efficiency and reduce food waste.

Sylvera, a U.K.-based startup, has received $5.8 million in seed funding. They leverage machine learning, utilizing data from satellites, radar, and lidar, to enhance transparency and accountability in carbon offsetting initiatives.

Emerging from stealth mode, SpecTrust has raised $4.3 million in seed funding. This risk defense startup offers a no-code platform designed to significantly reduce the costs associated with fraud prevention and accelerate threat response times.

BluBracket has obtained $12 million in Series A funding to broaden the capabilities of its source code security platform. The startup concentrates on safeguarding source code repositories, particularly within distributed environments.

Alba Orbital has secured a $3.4 million seed round to advance its mission of providing frequent Earth observation. The funding will support the launch of additional satellites, enabling imagery capture every 15 minutes.

A Strategic Go-to-Market Approach: The Hamburger Model

Startups that don't achieve product-market fit often cease to exist, leaving behind only digital remnants like dormant Twitter profiles and empty spaces in former co-working locations.

Eventually, all companies focused on product-led growth will encounter a pivotal moment. At this stage, founders need to determine the method for scaling their operations and attaining a billion-dollar valuation.

This is where the “hamburger” go-to-market strategy proves valuable.

The foundation, or bottom bun, of this model is a bottom-up go-to-market approach. Conversely, the top bun symbolizes enterprise sales efforts, while the product itself constitutes the core – the meat – of the strategy.

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

Big Tech Inc.

Google Analytics is proactively adapting to a future without cookies. It is leveraging its machine learning capabilities to predict user actions in scenarios where cookies are unavailable.

In her initial interview as the leader of Google Analytics, Vidhya Srinivasan conveyed to Frederic that this approach represents the sole viable path forward.

Amazon has reintroduced its Echo Buds, and Brian’s assessment this time around is notably more favorable than his previous experience. A clear indication of improvement can be found in his review.

Following the introduction of Stage Channels in March – a feature mirroring Clubhouse’s voice event rooms – Discord positioned itself to facilitate connections to live events extending beyond established communities.

Today, the company has announced the completion of the necessary infrastructure to enable the discovery of live events and the servers hosting them. Taylor suggests examples include open mic nights and book clubs.

Elon Musk, also known as the Technoking, is revising his company’s position regarding bitcoin, as reported by Kirsten and Rebecca.

The Tesla CEO announced via Twitter yesterday that the company is pausing the acceptance of bitcoin as payment for its electric vehicles.

This change in direction occurs shortly after Tesla’s CFO expressed confidence in the long-term potential of bitcoin, acknowledging its inherent price fluctuations.

Recent Acquisitions: Walmart has acquired Zeekit, a startup specializing in virtual try-on technology, and PayPal has purchased Happy Returns, a company focused on returns logistics.

Engagement with Our Audience

We value your input and enjoy the insights gained through interactive polls. What key takeaways emerged this past week? It appears there's limited enthusiasm for a return to traditional office environments.

Furthermore, sentiment regarding Bird’s planned merger with a SPAC is less than positive. We now want to gauge your perspectives on Tesla’s decision to temporarily suspend bitcoin payments.

Recent Poll Results

Our community’s feedback provides valuable data points. Join the discussion and share your thoughts on these topics – and more – within our Discord server.

Specifically, we’ve observed a prevailing disinterest in commuting back to office spaces. Additionally, there's a degree of skepticism surrounding the future prospects of Bird following its SPAC arrangement.

Office Return: A majority expressed reluctance.
Bird SPAC: Concerns were widely voiced.
Tesla & Bitcoin: Your opinions are now being sought.

We encourage continued participation in our polls to foster a dynamic exchange of ideas. Your contributions are essential to understanding the evolving landscape of technology and finance.