Daily Crunch: Nothing Ear (1) Rollout Date Announced

Daily Crunch: July 6, 2021

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

Welcome Back

Greetings, and welcome to Daily Crunch for July 6, 2021. We have resumed publication following a holiday break in the United States.

Despite the pause in our regular schedule, global technology news continued to unfold, resulting in a substantial amount of information to cover.

TechCrunch Early Stage Event

As a reminder, TechCrunch Early Stage is taking place later this week. A session focused on fundraising will be led by yours truly, alongside venture capitalist Sarah Kunst.

This event promises to be highly informative and engaging. — Alex

Today's Leading Tech Stories

The three most prominent tech narratives currently center around disputes. These disagreements involve clashes between corporations, regulatory bodies and tech firms, and companies facing opposition from their investors. Here's a closer look:

Governmental Regulation and Tech Companies

The ongoing tension between the Chinese government and the ride-hailing service Didi has intensified. This escalation includes restrictions on user registration and the removal of Didi’s applications from app stores.

Consequently, the company’s stock value has experienced a significant decline. Experts suggest that China’s regulatory scrutiny of the tech sector is far from complete, and the rate of Chinese companies launching IPOs in the U.S. has slowed considerably.

Furthermore, the dispute between Twitter and the Indian government continues to unfold without resolution.

The JEDI Cloud Contract Dispute

The highly contested U.S. military cloud contract, initially awarded to Microsoft, has been cancelled.

Amazon previously protested the decision, but now neither company will receive the anticipated $10 billion contract. This outcome represents a setback for both tech giants.

Box and Starboard Value's Investor Conflict

Box, once a leading cloud storage provider and now a public enterprise productivity platform, is engaged in a protracted dispute with activist investor Starboard Value.

In an unusual move, Box publicly released a TikTok video showcasing its communications with the investment firm. This action was essentially a direct challenge, accusing Starboard of hypocrisy.

While such accusations may not significantly impact capital pools focused on maximizing returns, the situation has generated considerable media attention.

• Key Takeaway: The tech landscape is currently marked by significant conflict across multiple fronts.

Startup and Venture Capital News

Recent developments in the startup ecosystem encompass several funding events, the launch of a new venture capital fund, and updates concerning Special Purpose Acquisition Companies (SPACs), spanning both terrestrial and space-based ventures.

Funding Rounds

• Super.mx Secures $7.2 Million: This Mexico City-based insurtech company has completed a Series A funding round. Its model centers around a “managing general agent” strategy for insurance coverage.
• Single.Earth Attracts $7.9M for Crypto-Carbon Tokens: Single.Earth proposes a novel approach, connecting carbon credits to tokens representing real-world assets. The company aims to revolutionize corporate carbon footprint offsetting.
• Wagmo Gains $12.5M for Enhanced Pet Insurance: The insurtech sector remains competitive due to the sheer size of the insurance market. Wagmo focuses on providing comprehensive pet care coverage, extending beyond standard insurance policies.

The insurance technology market is experiencing significant growth, attracting considerable startup investment.

New Venture Fund

• iFly.vc Launches $46M Second Fund: While venture capital fund announcements are less common in startup news, iFly.vc’s recent activity is noteworthy. The firm’s relocation from San Francisco to Austin during the pandemic is a significant detail.

This shift in location reflects broader trends in the startup landscape.

SPAC Activity

• Space-Focused SPAC: Sattelogic is pursuing a public listing through a SPAC merger. Its investor presentation emphasizes projected future earnings over historical performance.
• Earth-Based SPAC: Nextdoor is also going public via a SPAC. Its presentation highlights established revenue streams and current financial data.

The use of SPACs continues to be a popular method for companies to enter the public market.

Hardware Innovation

TechCrunch recently reported on upcoming headphones from Nothing, a relatively new hardware company. The company believes its $99 headphones can effectively compete with Apple’s AirPods Pro, which are priced at 2.5 times higher. Successfully achieving this would be a remarkable accomplishment for the startup.

If Nothing can deliver on this promise, it will significantly increase the company’s valuation.

Carl Pei of Nothing Discusses Ear (1) and Launching a New Hardware Venture

Carl Pei, the founder of Nothing, recently engaged in an exclusive conversation with Brian Heater, TechCrunch’s Hardware Editor. The discussion centered on the foundational product and design philosophies behind the Ear (1), a set of wireless earbuds priced at US$99, €99, and £99, slated for release this month.

Pei stated that the company’s initial focus is on intelligent devices. He believes the Ear (1) possesses significant potential for market acceptance as their inaugural product.

Acknowledging Apple’s dominant position and the competitive landscape, Pei emphasized Nothing’s commitment to authenticity. He also revealed preliminary marketing strategies and addressed the challenges inherent in consumer hardware manufacturing.

“Every design choice involves compromises,” Pei explained. “Prioritizing a particular aesthetic has numerous consequences.”

He further elaborated that factors like battery life, physical dimensions, and material selection all impact cost and production timelines. Managing these interconnected elements requires a complex, strategic approach.

The complete interview is available on Extra Crunch.

(Extra Crunch is a membership program designed to empower founders and startup teams. Sign-ups can be completed here.)

Big Tech Inc.

While we covered the majority of significant developments within Big Tech in our earlier report, additional news items warrant attention.

Twitter's Enhanced Privacy Measures

Twitter has recently unveiled concepts for new privacy functionalities, notably an option to exclude your account from search results.

This development is significant as it demonstrates a renewed dynamism within Twitter’s product development team. The company appears to have achieved a higher rate of discussion and release of new features in recent quarters compared to previous years.

This increased pace of innovation is a welcome change.

Verizon's THOR: A Humanitarian Response Vehicle

Verizon has showcased THOR, its innovative vehicle designed for swift humanitarian aid delivery in emergency situations.

THOR, which stands for Tactical Humanitarian Operations Response, is a substantial, robust vehicle that Verizon is developing to provide connectivity in areas affected by disasters.

Despite past criticisms, this demonstration of a technologically advanced and potentially life-saving vehicle is commendable. It represents a positive application of Verizon’s resources and expertise.

The vehicle’s capabilities are genuinely impressive.

While acknowledging other aspects of the company, Verizon’s development of THOR is a noteworthy achievement.

TechCrunch Experts: Growth Marketing

Did you stay current with our growth marketing coverage from the previous week? The complete report can be found here.

We are always seeking recommendations for accomplished growth marketers. Please submit your suggestions through this survey.

Growth Marketing Professionals

We regularly highlight leading professionals in the field of growth marketing. Our aim is to connect businesses with experts who can drive substantial results.

If you know of an individual with a proven track record in growth marketing, we encourage you to share their information.

How to Submit Recommendations

• A dedicated survey is available for submitting recommendations.
• The survey allows you to provide details about the marketer’s expertise and accomplishments.
• Your input helps us identify and feature top talent in the industry.

Submitting a recommendation is a simple process. It takes only a few minutes to complete the survey.

We appreciate your contributions to building a comprehensive network of growth marketing professionals.

Stay tuned for future updates and spotlights on exceptional growth marketing talent.