South Korea Delays Vote on 'Anti-Google Law' - Daily Crunch

Daily Crunch: August 25, 2021

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A Rapidly Evolving News Landscape

Greetings, and welcome to today’s Daily Crunch for August 25, 2021. The speed at which technology news develops is readily apparent when considering our primary story.

It represents a full reversal of the news that was considered most crucial earlier in the week. This demonstrates the dynamic nature of the tech industry!

— Alex

TechCrunch's Leading Three Stories

Recent developments include a significant policy shift by OnlyFans, a potential IPO from Warby Parker, and a major merger in the digital health space.

OnlyFans Reverses Course on Adult Content

A planned ban on most explicit content on OnlyFans has been rescinded following substantial backlash. The platform initially announced it would restrict adult material, but has since reversed this decision.

Further analysis of this situation can be found in the latest episode of the Equity podcast.

Warby Parker Pursues Public Offering

The direct-to-consumer eyewear company, Warby Parker, is preparing to go public. This move signals a potential resurgence in the IPO market after a quieter period.

TechCrunch has examined Warby Parker's financial data, noting the company's strong brand recognition and the complexities surrounding its previous private valuation.

Headspace and Ginger Announce Merger

Headspace, a popular meditation app, and Ginger, a mental health startup, are combining to form Headspace Health.

The newly formed company is valued at $3 billion and will employ a workforce of 800 individuals.

This merger positions Headspace Health as a major competitor to Calm, another prominent player in the meditation and mindfulness market.

The combined resources of both companies are expected to expand access to mental health and wellness services.

Startups and Venture Capital Updates

Let's examine several recent startup news items, beginning with Kanye West and his newly released device, the “Stem Player.” According to TechCrunch, this gadget is engineered to deconstruct musical tracks into their individual components – vocals, basslines, samples, and percussion. This is a rather innovative concept. Kanye’s involvement is likely to generate significant publicity for the product.

Turning to the fintech sector, we observe two developments that prompt consideration of the saturation point for investment in this space. Is there a limit to the amount of capital that densely populated fintech markets can effectively absorb before investor interest wanes?

• Flink Secures $57M in Funding to Develop a Latin American Robinhood Equivalent: Having already completed a $12 million Series A funding round earlier this year, Flink has now attracted a substantial influx of new capital. Similar to the widespread venture capital interest in identifying the next Coinbase, securing a stake in a potential Robinhood competitor is also a prominent investment strategy.
• Shares Raises $10 Million for a Socially-Integrated European Stock Trading Platform: While several consumer stock trading services already serve the European market, venture capital firms are wagering that further opportunities exist. A growing base of active investors will be essential for the survival of the startups aiming to cater to them.

From the realm of logistics, two stories offer a glimpse into a future where home delivery services are both more environmentally friendly and potentially more affordable:

• Alphabet’s Drone Delivery Service Expands: Positive news arrives from Australia. Wing, Alphabet’s drone delivery subsidiary, has surpassed 100,000 successful deliveries, as recently announced. Currently, the service operates in Logan, Australia, a city with a population of approximately 300,000. Alphabet, please extend this service to Providence, Rhode Island.
• Coco Secures $36M for Adorable Delivery Robots: At some point, a decision was made – one I unfortunately missed – to ensure all delivery robots possess an appealing aesthetic. The reasoning remains unclear. Coco’s delivery robot is undeniably charming, and is now significantly funded through a Series A round led by Sam Altman, of Y Combinator.

Continuing with the logistics theme, here are two updates concerning the digital commerce landscape in Europe:

• Y Combinator-Backed Membo Creates a Direct-to-Consumer Marketplace for Local Food Producers: Based in Estonia and currently participating in the Y Combinator program, Membo is developing an app-based platform connecting local food producers directly with consumers. Further details are anticipated next week during the accelerator’s demo day.
• Membo Faces Competition from European Instant Grocery Delivery Companies: Membo will encounter competition from a number of European “instant grocery” delivery companies that have collectively raised around $2 billion, as detailed by Picus Capital’s Alexander Kremer. The investor suggests that insights from the Chinese market indicate that “instant delivery is not the definitive solution to challenge the established dominance” of traditional grocery retailers.

Finally, cybersecurity venture capital investment has reached record levels, and cannabis-focused startup Jane has successfully completed a $100 million funding round.

India's Ascent to SaaS Dominance: Opportunities and Hurdles

Projections indicate that India’s Software as a Service (SaaS) sector is poised for substantial growth, potentially capturing 4% to 6% of the global market by the year 2030. This expansion is anticipated to yield annual revenues ranging from $50 billion to $70 billion, as detailed in a recent report by SaaSBOOMi and McKinsey.

Manav Garg, the CEO and founder of Eka Software Solutions, asserts that a strategic focus will enable the Indian SaaS ecosystem to become a major source of employment, a key driver of India’s Gross Domestic Product, and a producer of innovative software solutions.

Key Factors Fueling Growth

A recent analysis highlights several crucial elements propelling this expansion. These include the nation possessing the world’s largest pool of software developers and the inherent nature of the SaaS market, which doesn't favor a single dominant player.

The SaaS landscape allows for multiple successful companies to thrive, fostering competition and innovation.

However, realizing this potential necessitates a proactive and adaptable approach to growth.

Successfully navigating this trajectory demands a “growth mindset” within the industry.

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

Big Tech Inc.

Contrary to earlier predictions, the personal computer remains a vital technology. Recent data from Canalys reveals a 17% increase in PC sales compared to the previous year.

Interestingly, tablet sales have remained stagnant during the same period. This suggests a continuing preference for the capabilities of full-performance computing machines, potentially driven by increased workloads.

The positive trend in PC sales is beneficial for major technology companies like HP and Lenovo.

Hulu Introduces HDR Viewing

Hulu, a leading U.S. video streaming platform, has begun implementing support for High Dynamic Range (HDR) content as of August 19th.

The rollout is expected to reach all users equipped with HDR-compatible devices within the next few days, according to TechCrunch. Currently, HDR playback is limited to select, prominent titles available on Hulu.

South Korea Postpones "Anti-Google" Legislation

Proposed legislation in South Korea, aimed at regulating the practices of large technology companies, has been delayed.

As reported by TechCrunch’s Kate Park, the bill, if enacted, would make South Korea the first nation to restrict tech giants like Google from mandating their own billing systems for in-app transactions.

Both Apple and Google have voiced opposition to the proposed law.

The delay allows for further consideration of the potential impacts of this groundbreaking legislation.

Growth Marketing Insights from TechCrunch Experts

Startup founders are being contacted to share their preferred resources for current growth marketing strategies.

Participation in a survey to identify leading experts is encouraged; the survey can be accessed here.

A testimonial from a satisfied client is presented below.

Client & Recommendation Details

Marketing Agency: One Net Inc.

Referred by: The Good Ride

Client Feedback: “Their SEO skills are truly outstanding.

Our e-commerce business depends entirely on organic search traffic.

Previously, we faced a critical issue – removal from Google’s index due to problems with duplicate content.

One Net successfully addressed these issues and fully optimized our website for Google’s algorithms.

This optimization enabled us to regain visibility in the SERPs.

Ultimately, their services were instrumental in rescuing our company.”

Key Benefits Highlighted

• SEO Expertise: Demonstrated proficiency in search engine optimization.
• Problem Resolution: Effective handling of duplicate content penalties.
• Traffic Recovery: Successful restoration of organic search visibility.
• Business Impact: Directly contributed to the survival of the client’s business.

The testimonial underscores the importance of robust SEO practices for e-commerce success.