Reddit Raises $250M: Daily Crunch

Tech News Roundup: February 9, 2021

Recent developments include Reddit securing additional funding, Shopify’s payment expansion to Facebook, and research indicating the potential of the Apple Watch in predicting COVID-19 diagnoses. This summarizes the key updates in today’s tech landscape.

Reddit Secures $250 Million in Funding

Reddit has announced a new funding round of $250 million. This investment follows increased attention to the platform, particularly due to the role of the WallStreetBets subreddit in the fluctuations of GameStop’s stock price.

The company detailed in a blog post that these funds will be allocated to strategic areas. These include advancements in video capabilities, advertising initiatives, development of consumer products, and expansion into new international markets.

Updates from Major Tech Companies

Shopify is now offering its Shop Pay payment option to merchants utilizing Facebook and Instagram. This marks the first instance of Shop Pay being accessible outside of the Shopify ecosystem.

CD Projekt, the gaming company, experienced a ransomware attack but has refused to comply with the ransom demands. They have confirmed the securing of their IT infrastructure and the ongoing process of data restoration.

Spotify is initiating testing of a live lyrics feature within the United States. While this functionality has been available in several other regions, it has been absent from the U.S. market for a considerable period.

Startup Funding and Venture Capital News

Swarm’s satellite data network, offering low-cost access, is now available for commercial use. This represents a significant step for one of the pioneering startups focused on establishing a low-Earth orbit satellite constellation.

Mighty Buildings has received $40 million in Series B funding to further its work in 3D-printed housing. The company claims the ability to 3D print a 350-square-foot studio apartment within a single day.

Eniac Ventures has raised $125 million for its fifth fund, demonstrating substantial growth over time. Their initial fund in 2010 was valued at $1.6 million, compared to the $100 million raised in 2017.

Analysis and Insights from Extra Crunch

A hacking attempt targeted the water supply of a Florida town, raising cybersecurity concerns. Oldsmar, Florida, became the focal point of this incident within the cybersecurity community.

The use of SAFEs (Simple Agreements for Future Equity) may be influencing reported seed funding volumes. SAFEs provide a streamlined and cost-effective method for companies to secure capital.

(Extra Crunch is a membership program designed to support founders and startup teams. Interested parties can find more information and sign up here.)

Additional News

The agenda for TC Sessions: Justice has been announced. This event, dedicated to diversity, equity, inclusion, and labor within the tech industry, will be held on March 3.

A study conducted by Mount Sinai suggests the Apple Watch may be capable of predicting COVID-19 diagnoses up to a week prior to formal testing. The “Warrior Watch Study” utilized a dedicated Apple Watch and iPhone application, involving participants from Mount Sinai’s staff.

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