daily crunch: spotify’s new ‘only you’ feature expands on personalization investment

Daily Crunch: June 2, 2021 – Spotify’s Mid-Year Review and Personalized Mixes

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Welcome to Daily Crunch

Greetings and a warm welcome to Daily Crunch for June 2, 2021. The technology sector is experiencing positive developments today, notably with announcements from Spotify, a company that was once valued at over $1 billion.

Spotify Enhances Personalization Features

Spotify is releasing new functionalities centered around user listening habits. The company is evolving its annual listening review into a mid-year assessment.

Furthermore, the application is being enriched with a greater number of mixes tailored to individual preferences.

The Power of Personalized Playlists

For many users, the curated playlists offered by Spotify are a key reason for continued subscription. The service is therefore strengthening its focus on personalization.

As an example, a significant amount of listening time is dedicated to artists like Taylor Swift, particularly during the morning hours. — Alex

TechCrunch's Leading Three Stories

This report details the three most prominent tech news items covered by TechCrunch recently. These include a significant acquisition, a substantial funding round, and ongoing trends in tech company liquidity.

Stack Overflow Acquisition

Stack Overflow, the widely recognized online community for developers and a vast repository of code solutions, has been acquired by Prosus for $1.8 billion. This platform serves as a crucial resource for software engineers across all experience levels.

Prosus is a component of Naspers, a South African investment conglomerate. Naspers is notably recognized for its considerable ownership stake in Tencent, a leading technology company.

Guild Education Secures Funding

Guild Education, a company specializing in “employer-sponsored learning opportunities” as described by TechCrunch, has successfully raised $150 million in its latest funding round.

This investment elevates Guild Education's valuation to $3.75 billion. The funding signifies continued strong investor interest in the expanding edtech startup sector, with ample capital available for companies addressing diverse aspects of education.

Tech Company Liquidity Trends

The trend of technology companies seeking liquidity continues to gain momentum. Several well-established startups, such as Marqeta, are preparing for public listings.

Furthermore, Yieldstreet, a fintech company, is reportedly considering an initial public offering (IPO) through a Special Purpose Acquisition Company (SPAC). Confluent, a data-focused unicorn, is also advancing towards a public offering.

These developments demonstrate a robust environment for tech companies looking to access public markets and provide returns to investors.

Startups and Venture Capital Funding

The current week has seen significant activity in startup fundraising, with companies at various stages of development securing capital. Below is a curated selection of the most noteworthy deals announced today.

Early Stage Funding Rounds

• Faction Secures $4.3M for Autonomous Delivery Vehicles: The company is developing three-wheeled vehicles designed for driverless delivery services. Despite challenges in the field, substantial investment suggests eventual success is anticipated, and Faction aims to be a leader in this emerging technology.
• FlixMobility Raises $650M for Budget Transportation: Operating FlixBus and FlixTrain in Europe, FlixMobility is expanding its low-cost travel options. This Series G funding will also support growth initiatives within the United States.
• Tier Gains $60M for E-Scooter Expansion: Contrary to some reports, the electric scooter market remains viable. Tier has secured a scalable debt facility and is innovating with advanced battery technology to fuel its continued growth.

Diverse Industry Investments

Beyond transportation, today’s funding rounds span a wider range of sectors.

• Stemma Attracts $4.8M for Managed Amundsen: Amundsen is a data catalog originally developed by Lyft to manage its extensive data needs. Stemma now offers this tool as a managed service, mirroring the approach of companies like BuildBuddy by providing access to BigCo technologies.
• Jeeves Obtains $131M in Combined Funding: This includes $31 million in equity and $100 million in debt financing. Jeeves is focused on building a global expense management platform, catering to companies with internationally distributed teams.
• Divido Raises $30M for Buy Now, Pay Later (BNPL) Services: Despite a crowded market, Divido has secured funding to expand its BNPL offerings. While the BNPL sector has experienced rapid growth, questions remain about potential market saturation.

Etsy’s $1.6B Acquisition of Depop: A Gen Z Play?

Today, reports surfaced detailing Etsy’s agreement to acquire the pre-owned fashion marketplace, Depop, in a deal valued at $1.625 billion. The startup is based in the United Kingdom.

Depop experienced a substantial 100% increase in year-over-year growth, achieving $70 million in revenue during the previous year. However, the question remains whether Etsy has overpaid to broaden its appeal to Gen Z and younger millennial shoppers.

To better understand the financial implications of this acquisition, a comparison of revenue multiples with competitors like Poshmark and ThredUp is insightful. The willingness of major e-commerce companies to invest in marketplaces favored by younger demographics suggests a strategic rationale.

The deal highlights the importance of capturing the attention of a younger consumer base.

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

Big Tech Inc.

Activity was high across the major technology companies today, with the exception of Spotify. This report focuses on developments from Amazon, Apple, Facebook, GitLab, and Huawei.

• Amazon’s Policy Shift in 2021: The e-commerce leader, Amazon, has announced the cessation of cannabis testing for its workforce. This news prompted the question of whether Amazon previously conducted such testing.
• Apple’s Economic Impact Assessment: Apple has released a report asserting its role in enabling over half a trillion dollars in commerce during the past year. The methodology behind this figure has been subject to internal scrutiny.
• Positive Developments at Facebook: Facebook has taken two noteworthy actions. First, it has broadened access to its Messenger API to encompass all businesses. Second, the company has launched a research API. These initiatives represent positive contributions from the organization.
• GitLab’s Acquisition of UnReview: GitLab, with revenues exceeding $100 million and plans for a future IPO, has acquired UnReview. This startup utilizes machine learning to assist software teams in identifying optimal code reviewers.
• HarmonyOS and its Android Roots: Detailed coverage from TechCrunch reveals that Huawei’s new operating system, HarmonyOS, incorporates elements of Android code. This development acknowledges Google’s foundational work.

These updates highlight the diverse activities and strategic decisions shaping the landscape of the technology industry.

Further Details on Each Company

Let's delve a little deeper into each of these developments.

Amazon and Employee Testing

The decision to end cannabis testing aligns Amazon with a growing trend among employers. Many companies are re-evaluating drug testing policies, particularly concerning substances legal in certain jurisdictions.

This change reflects a broader societal shift in attitudes towards cannabis and a focus on employee well-being.

Apple’s Commerce Facilitation

Apple’s claim of facilitating over $500 billion in commerce is based on the activity within its App Store ecosystem. This includes direct sales, as well as transactions facilitated by apps on the platform.

The calculation likely incorporates a multiplier effect, accounting for the broader economic impact of the App Store.

Facebook’s API Openings

Opening the Messenger API allows businesses to integrate directly with Facebook’s messaging platform. This enables automated customer service, marketing campaigns, and other functionalities.

The research API provides access to anonymized data for academic and research purposes, fostering innovation and understanding of social media trends.

GitLab and Code Review

UnReview’s machine learning algorithms analyze code changes and developer expertise to suggest the most appropriate reviewers. This streamlines the code review process and improves code quality.

This acquisition strengthens GitLab’s position as a comprehensive DevOps platform.

Huawei and HarmonyOS

While HarmonyOS is presented as an independent operating system, its reliance on Android code indicates a degree of compatibility and continuity. This approach allows Huawei to maintain functionality for existing Android app developers.

The development of HarmonyOS is a strategic response to restrictions imposed on Huawei’s access to Google’s services.

Discussion Forum

A live conversation regarding the evolving landscape of e-commerce is scheduled for tomorrow, Thursday, at 2:00 PM Pacific Daylight Time, or 5:00 PM Eastern Daylight Time. This discussion will take place on Twitter Spaces.

The event will feature Ethan Choi from Accel, author of a recent article published in Extra Crunch. He will be joined by Danny Crichton from TechCrunch, Finbarr Taylor, CEO of Shogun, and Brandon Chu, VP of Product and General Manager of Platform at Shopify.

Event Details

Further specifics, including how to join the Twitter Spaces session, will be shared via our Twitter feed. Attendees are encouraged to participate by sharing their insights and posing questions during the discussion.

We invite you to listen in and contribute to the conversation about the future of e-commerce.

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