Daily Crunch: May 24th – Tech News Roundup

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The Week's Kickoff

It's Monday, May 24th, and the recent advancements with the Surface Duo, particularly its capability for dual-screen gaming, have captured my attention. Similarly, the new iMac models are quite appealing.

While neither device is a necessity, the desire for these gadgets remains strong. However, practical considerations aside, the week began with considerable activity.

Key Developments

The start of the week was marked by a substantial number of startup funding announcements. Furthermore, the ongoing debate surrounding governmental regulation of social media platforms continued to unfold.

Additional news regarding Initial Public Offerings (IPOs) emerged, alongside the latest challenges facing Tesla. Let’s proceed directly to the details.

— Alex

The TechCrunch Top 3

• Government and Technology Conflicts: Representatives of Indian law enforcement, with connections to the national government, visited Twitter locations on two occasions today. This action is believed to be an attempt to exert pressure after Twitter declined to remove a label identifying a tweet from a member of the governing party as potentially misleading.

Several points are noteworthy. Firstly, India isn't isolated in its attempts to compel social media platforms to align with domestic governmental expectations.

However, the actions undertaken by the present Indian administration are especially concerning and suggest a potentially unfavorable outlook for the nation’s broader technological landscape.

• Tesla's Financial Obligation to Norway: The prominent American electric vehicle manufacturer, Tesla, is facing difficulties in Norway. A “Norwegian conciliation council” has mandated the company to provide compensation of $16,000 to numerous Model S vehicle owners.

This ruling stems from a determination that a software update resulted in extended charging durations for the vehicles. This financial burden will necessitate substantial revenue generation from the sale of American regulatory credits.

Norway represents a crucial market for electric vehicles, making this situation particularly significant for Tesla.

• Surveillance Technology Procurement by U.S. Cities: A recent investigative report by Zack Whittaker and IPVM reveals that a considerable number of U.S. municipalities – at least one hundred counties, towns, and cities – have acquired surveillance systems manufactured in China.

These systems have been identified by the U.S. government as being associated with documented human rights violations. This discovery raises serious ethical and security concerns.

Startups and Venture Capital

We are presenting a selection of the most noteworthy funding rounds announced today. Additional information can be found on our blog if you require a more comprehensive overview.

Solidus Labs secures $20M to monitor cryptocurrency activity: The increasing prominence of cryptocurrencies has directly benefited Solidus Labs, a company specializing in the identification of “volume and price manipulation” within the digital currency market. According to CEO Asaf Meir, the company experienced a “400% increase in inbound demand” throughout 2020.

A regular, monthly report detailing the extent of manipulation across different exchanges and cryptocurrencies from Solidus Labs would be exceptionally valuable.

Fireflies.ai obtains $14M to revolutionize meeting management: Fireflies.ai, a former participant in the Acceleprise program, is developing software designed to record and transcribe meetings. This software then integrates the resulting text – and potentially associated action items – with other applications.

The company is demonstrating substantial growth, prompting a $14 million investment led by Khosla Ventures.

Mono attracts $2M investment to bolster African fintech innovation: Mono aims to become the “Plaid for Africa,” with the broader goal of “powering the internet economy in Africa.”

The recent funding will enable Mono to continue its efforts in “[streamlining] various financial data into a single API for companies and third-party developers.” APIs, fintech, and fintech APIs are all areas of significant potential.

Flat6Labs secures $13.2M to support Egyptian entrepreneurial ventures: This announcement concerns a new fund, though its size allows for inclusion within our startup coverage.

Since 2011, Flat6Labs has operated as an accelerator program in both Egypt and Tunisia. This new capital will expand their capacity to invest in promising startups.

Analyzing Zeta Global’s Initial Public Offering: Zeta Global is now a publicly traded company. This IPO is anticipated to influence the martech sector for the foreseeable future.

We have reviewed Zeta Global’s financial data to assess its unique value proposition for potential investors.

Identifying Problematic Venture Capital Investors

Ofri Ben-Porat traveled from London to New York City for investor meetings. One potential investor canceled at the last moment, citing illness as the reason.

Interestingly, Ben-Porat then received a notification from DocSend. This notification revealed the VC had actually accessed his pitch deck shortly after canceling the meeting.

Despite this, he proceeded with the meeting as planned, acting as if he hadn't received the cancellation notice. The meeting proved productive, leading to a pre-term sheet and due diligence request.

However, Ben-Porat ultimately decided against accepting investment from this firm, stating he had a negative feeling about the situation.

Obtaining sufficient funding at the appropriate time is crucial for startup success. Founders who fail to recognize or disregard warning signs may face future difficulties.

(Extra Crunch is a membership program designed to support founders and startup teams. Sign up here.)

Recognizing Red Flags in VC Interactions

Founders should be vigilant in assessing potential investors. A seemingly minor inconsistency, like a canceled meeting followed by immediate deck access, can indicate a lack of respect or transparency.

It’s vital to trust your instincts during the fundraising process. A gut feeling of discomfort should not be dismissed, even if the terms appear favorable.

Due diligence isn't a one-way street. Founders must also perform due diligence on their potential investors to ensure a good fit.

Big Tech Inc. – A Weekly Roundup

The question of which tech giant consistently emulates its competitors is often posed – and the answer frequently points to Facebook. However, recent developments suggest Facebook may be venturing into more original territory.

TechCrunch has uncovered ongoing development of creator-focused features within Facebook’s TikTok-inspired platform. While imitation remains a factor, these enhancements indicate a potential shift in strategy.

Shifting focus to Apple, the company’s success with M1 chips and aesthetically pleasing products like the purple iPhone doesn't overshadow all areas of operation.

Recent reports from TechCrunch detail several macOS vulnerabilities that raise significant security concerns. This prompts a revisiting of the familiar refrain: perhaps a PC offers a more consistently stable experience?

Fortunately, Apple also released a suite of new software updates, providing improvements for users of iPhone and iPad devices.

Microsoft enthusiasts are not left out of the news cycle. A comprehensive review of the new Surface Laptop 4 has been published.

The device largely retains the characteristics – both positive and negative – of its previous iteration, but benefits from updated internal components.

Beyond these major players, several other noteworthy events occurred this week:

• ByteDance continues to achieve success with another popular application.
• Airbnb is increasing its commitment to providing guests with flexible booking options.
• SiriusXM has formed a partnership with TikTok to launch a dedicated channel.
• SensorTower is tracking mergers and acquisitions within the tech industry.

These developments highlight the dynamic and ever-evolving landscape of the technology sector. Big Tech companies are constantly innovating, adapting, and, occasionally, borrowing from one another.

TechCrunch Experts: Email Marketing

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Currently, we are prioritizing recommendations originating from clients, not direct submissions from the experts themselves. Your insights regarding your experiences and the process of selecting an appropriate expert are highly valued.

Please share your feedback by completing the survey available at this link.

Survey Participation

We are enthusiastic about the progress of this initiative. Further details about the TechCrunch Experts program can be found on our website.

Visit techcrunch.com/experts to learn more about how we are identifying top talent.

TC Eventful

Our inaugural space-focused startup event, TC Sessions: Space, took place last year. It showcased prominent figures and founders within the space industry, including Peter Beck of Rocket Lab, Lisa Callahan from Lockheed Martin, Dave Limp representing Amazon, and Kathy Lueders of NASA, among others.

We are pleased to announce a continuation of this event with TC Sessions: Space 2021, scheduled to be held virtually on December 14th and 15th.

TC Sessions: Mobility 2021 is fast approaching, scheduled for June 9th. Startups developing innovative mobility solutions have a limited opportunity to gain exposure.

If you aim to present your pioneering, cutting-edge, and groundbreaking early-stage venture to key players in the mobility sector, prompt action is required.

There is only one week remaining to secure one of the three available Startup Exhibitor Packages.