Microsoft Acquires TakeLessons: Daily Crunch

Daily TechCrunch Update – September 10, 2021

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

A Farewell Note

Greetings, readers! This is a welcome back to the Daily Crunch. September 10, 2021, marks my final day as the curator of this newsletter. It has been a pleasure serving as the Daily Crunch’s lead.

Reflections on the Role

Several insights have been gained during this period. Email newsletters present a unique challenge compared to blog posts, as errors cannot be corrected after distribution.

• A curious observation is a reluctance to include links to previously published articles within the newsletter.
• It’s been noted that Alex Wilhelm completes this task considerably faster.
• A hypothesis has emerged suggesting Alex may, in fact, be multiple individuals due to his prolific output.

Microsoft has recently acquired the tutoring platform TakeLessons for an undisclosed amount. This acquisition expands Microsoft’s presence in the education technology sector.

The pressure associated with email newsletters is greater than that of blog posts due to the inability to rectify mistakes once they are sent. This realization is somewhat ironic, as acknowledging it likely increases the probability of errors occurring in this very newsletter.

Concluding Remarks

Thank you for your readership. It has been a rewarding experience.

— Greg

TechCrunch's Top 3 Updates

Here's a rundown of the most significant tech news as reported by TechCrunch.

Apple and Shazam: Addressing DJ Mix Royalties

A key question arises when DJs blend multiple tracks: how are the original artists compensated? Apple proposes a solution leveraging Shazam, the music identification service it acquired in 2018 for $400 million.

This integration aims to accurately identify the songs within DJ mixes, facilitating proper royalty distribution.

JioPhone Launch Postponed

The planned release of a new phone developed collaboratively by Google and Jio Platforms, specifically for the Indian market, has been delayed.

Global semiconductor shortages are cited as the primary reason for this postponement. Jio anticipates resolving the supply chain issues within approximately two months.

Epic Games to Discontinue Houseparty

Epic Games has announced the upcoming shutdown of Houseparty, a video chat application it purchased in 2018 for a reported $35 million.

The app will cease operations in October. However, the technology underpinning Houseparty will continue to be utilized within other Epic products, such as Fortnite’s cross-platform voice chat functionality.

Houseparty’s core technology will live on, integrated into the Fortnite experience.

Startups and Venture Capital Updates

Recent developments in the startup ecosystem highlight significant funding rounds and advancements in key technologies. Several companies have achieved substantial valuations, demonstrating continued investor confidence.

Mammoth Biosciences: A Biotech Unicorn

Mammoth Biosciences, a biotechnology firm established with the involvement of CRISPR technology innovator Jennifer Doudna, has surpassed a valuation of $1 billion. A comprehensive explanation of the company’s operations is available in Emma Betuel’s detailed article.

Supabase Secures $30 Million in Series A Funding

Supabase has successfully completed a $30 million Series A funding round. The company is focused on developing an open-source platform designed to streamline the often-complex back-end processes associated with new application development.

This platform automates tasks such as database management and API creation, including documentation. Since its emergence from Y Combinator last year, Supabase has consistently generated positive feedback and is actively releasing new features.

Notably, the entire Supabase team operates remotely, distributed globally.

Snyk’s Substantial Funding Round

Snyk, a startup based in Boston, has secured a significant investment of $530 million, resulting in an $8.5 billion valuation. The company’s core mission is to assist developers in producing more secure code.

Snyk operates as a late-stage startup, providing tools and services aimed at enhancing code security throughout the development lifecycle.

This funding round underscores the growing importance of application security in the current technological landscape.

The Implications of China’s New Data Privacy Law for US Technology Companies

New data privacy legislation in China takes effect on November 1, 2021. Businesses must determine if they are prepared to meet the new standards.

Drawing inspiration from the European Union’s GDPR, these regulations “[establish] potentially the most comprehensive and robust data privacy protections globally,” according to Scott W. Pink, special counsel at O’Melveny’s Data Security & Privacy practice.

He provides a detailed analysis, outlining the core requirements and necessary compliance procedures for US companies serving customers within China.

Pink suggests that, “US-based companies operating within China, or those engaging with Chinese entities, should promptly evaluate the effects of this legislation on their operations.”

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

Big Tech Inc.

Recent developments continue to shape the landscape of the technology sector, with significant moves from major players.

Microsoft's Expansion into EdTech

Microsoft has announced the acquisition of TakeLessons, following closely on the heels of its purchase of Clipchamp. This strategic move indicates a growing interest in the education technology market.

TakeLessons, headquartered in San Diego, facilitates connections between students and specialized instructors for a variety of subjects, including mathematics, music, and art. Considering the widespread use of Microsoft Teams by over 100 million students, expanding its edtech offerings appears logical.

App Store Policy Changes

A pivotal ruling has emerged from the ongoing legal dispute between Epic Games and Apple. The judge has mandated that Apple permit developers to provide payment options outside of its established in-app purchase system.

Despite this decision, Epic CEO Tim Sweeney expressed dissatisfaction, stating the ruling doesn't go far enough and vowing to continue the legal challenge.

Fortnite's Potential Return to South Korea

In South Korea, a recently enacted law compels Apple to allow developers to utilize their own payment platforms. Consequently, Epic Games is seeking the reinstatement of Fortnite on the App Store within the country.

However, Apple has declined this request, asserting that “no legitimate basis” currently exists for restoring Epic’s developer account.

Anticipating Apple’s Upcoming Event

September traditionally marks the period for a major Apple product announcement. Speculation is mounting regarding what will be unveiled, with a new iPhone being the anticipated centerpiece.

Brian Heater has compiled a comprehensive overview of expectations for the event.

TechCrunch Experts: Growth Marketing

Startup founders are being contacted to identify their preferred sources for current growth marketing strategies.

Participation in the survey can be completed through this link.

A sample testimonial received is presented below.

Expert Profile

Marketing Professional: Mike Le, CB/I Digital

Referral Source: Tony Drockton, Hammitt

Testimonial

“Over the course of two years, few individuals have demonstrated such a strong analytical and data-focused approach have come to my attention.

His proprietary algorithms, designed for scaling advertising expenditure, have been instrumental in sustaining our rapid expansion – a 60% growth rate.”

These algorithms have enabled us to effectively manage and optimize our spending while continuing to experience significant growth.

Community Engagement

Danny Crichton will be hosting a discussion on Twitter Spaces this Tuesday, September 14th. The conversation will begin at 2:00 PM Pacific Daylight Time, or 5:00 PM Eastern Daylight Time.

The topic under consideration is the potential impact of remote work on the necessity of H-1B visas. He will be joined by Sophie Alcorn, an immigration attorney from Alcorn Immigration Law.

Expert Insights

Sophie Alcorn also contributes as a guest columnist for the “Dear Sophie” column featured on Extra Crunch. Her legal expertise will provide valuable perspectives during the discussion.

The session aims to explore whether the increasing prevalence of remote work arrangements could lead to a decreased reliance on H-1B visas for specialized talent.

• Event: Twitter Spaces Discussion
• Host: Danny Crichton
• Guest: Sophie Alcorn (Alcorn Immigration Law)
• Date: Tuesday, September 14th
• Time: 2:00 PM PDT / 5:00 PM EDT
• Topic: Remote Work & H-1B Visas

Participants are encouraged to join the conversation and share their thoughts on this evolving landscape.