Elon Musk's Spaceport Faces Questions Over Natural Gas Use - Daily Crunch

Daily Crunch: October 8, 2021

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Greetings, and welcome to the Daily Crunch for October 8, 2021. It is Friday, marking the end of the workweek! Consider the exhaustion of the Instagram team, as their platform is currently experiencing further periods of downtime.

Instagram Faces Continued Uptime Challenges

The Instagram service is grappling with additional uptime problems this afternoon. These issues compound a week that already saw the platform announce a new restriction on user activity.

Specifically, Instagram has prohibited its users from trading portions of the Amazon rainforest. This represents a notable development for the company, often referred to as Zuck’s empire.

Tech News Roundup

Now, let's shift our focus to the broader landscape of technology news and developments. A variety of important stories are unfolding across the tech sector.

– Alex

TechCrunch's Leading Three Stories

Here's a rundown of the top three tech stories as reported by TechCrunch.

SpaceX's Fuel Source Question

SpaceX's ambitious plans for its largest rockets are facing scrutiny due to a lack of clarity regarding its natural gas supply. The company will require substantial quantities – tens of millions of cubic feet – of this fuel.

While Tesla operates on a petrol-free model, SpaceX's draft programmatic environmental assessment (PEA) raises questions about the sourcing of the necessary combustible gas.

European Startup Funding Expansion

Early-stage startups across Europe are poised to benefit from increased support through new accelerator programs.

Techstars is expanding its presence with new programs launching in both Paris and Stockholm, supplementing its existing initiatives throughout the continent.

According to Techstars’ CEO, the current number of European founders exceeds the available resources, even with record levels of venture capital investment.

Tesla's Relocation to Texas

Tesla has announced its intention to move its corporate headquarters to Austin, Texas, from its long-standing base in California.

However, this relocation does not signify a withdrawal from California; the company plans to significantly increase production at its Fremont gigafactory by 50%.

The primary driver behind this move appears to be favorable tax conditions in Texas.

Startups/VC

Recent reports from TechCrunch, authored by Annie Njanja, suggest that the economic expansion and increasing accessibility of digital and mobile services across Kenya and the broader African continent are creating favorable conditions for growth within the insurtech sector.

Insurtech has already demonstrated significant potential for both entrepreneurs and investors in North America and Europe. The question now is whether Africa will follow suit.

African startups have consistently shown strength in the fintech landscape, leading to speculation that a move into insurtech may be a natural progression.

Slice Funding

Today’s news concerns a potential investment round for Slice, an Indian company focused on increasing credit card utilization within the country. Tiger Global Management is reportedly considering a $100 million investment.

According to TechCrunch’s Manish Singh, Slice previously secured approximately $30 million in equity financing and was valued at under $200 million earlier this year.

It’s important to note that this Slice is distinct from the American pizza software company of the same name, highlighting the need for more unique startup branding.

Alpha Paw Secures Funding

Alpha Paw has recently raised $8 million in funding. Dismissing pet wellness startups as frivolous may be shortsighted, especially considering the rising costs of veterinary care.

Maintaining pet health can lead to substantial savings. Alpha Paw specializes in customized pet products, including food and supplements tailored to specific dog and cat breeds.

Considering the demographic trend of individuals prioritizing pets over children, Alpha Paw’s potential for further funding appears strong.

Productfy's Banking-as-a-Service

Productfy has secured $16 million to advance its banking-as-a-service (BaaS) product. The BaaS market is becoming increasingly crowded, raising questions about potential future consolidation.

Despite the competition, BaaS startups continue to attract investment, indicating underlying market growth. Productfy aims to differentiate itself by bridging the gap between DeFi and traditional finance, as stated by founder and CEO Duy Vo, as reported by Mary Ann Azevedo.

Similar to the emerging OKR startup space, the BaaS sector may eventually experience consolidation as the market matures.

The Next Phase of MSP Consolidation is Fueled by Private Equity

The accelerated digitization of businesses across various sectors presents significant opportunities for companies proactively investing in digital transformation.

However, a concurrent challenge exists: a shortage of skilled technical professionals. Organizations are facing increased competition in attracting and retaining individuals capable of establishing and maintaining secure, resilient IT infrastructures.

Managed Services Providers (MSPs) are effectively addressing this need, and this has not gone unnoticed by private equity investors.

According to a report by Mike McGill and Kevin Jolley of Cowen and Company, LLC, MSPs possess characteristics highly attractive to private equity firms.

These include a robust and growing market demand, minimal risk of becoming outdated, a service model fostering strong customer loyalty, substantial recurring revenue streams, healthy cash flow margins, and a business model requiring relatively low capital investment.

The combination of these factors positions MSPs as particularly appealing targets for investment.

(Access to exclusive insights and resources for founders and startup teams is available through TechCrunch+. Registration can be completed here.)

Big Tech Inc.

Recent developments indicate significant policy shifts within major technology companies.

Climate Change Advertising Policies

Alphabet, the parent company of Google and YouTube, has announced a new stance against profiting from climate change denial. The company will cease allowing advertisements and monetization for content that actively promotes denialism regarding climate change.

Enhanced Security Measures Against State-Sponsored Hacking

Google is proactively addressing the threat of Russian hacking by distributing physical hardware security keys to approximately 10,000 users deemed to be at risk. While a more comprehensive solution to state-sponsored cyberattacks is needed, this initiative represents a positive step towards user protection.

Pinterest's Focus on Mental Wellbeing

Pinterest is developing a new feature called "havens." This dedicated space within the platform is designed to facilitate exploration of the connection between mental health and the importance of rest.

The intention behind "havens" is to provide a supportive environment for users seeking resources and information related to mental wellbeing.

These actions demonstrate a growing trend among big tech firms to address societal concerns and enhance user security.

TechCrunch Experts

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