Daily TechCrunch News Summary

A daily digest of the most significant and impactful stories from TechCrunch can be delivered directly to your inbox.

This curated newsletter is sent out each day at 3:00 p.m. Pacific Daylight Time (PDT).

Subscription is simple and ensures you stay informed about the latest developments in the technology world.

Key Benefits of Subscribing

• Receive a comprehensive overview of TechCrunch’s top stories.
• Stay up-to-date with crucial industry news.
• Convenient daily delivery at a consistent time.

The newsletter provides a concise and efficient way to remain current on the rapidly evolving tech landscape.

It’s an ideal resource for professionals, investors, and anyone with a keen interest in technology.

Ensure you don’t miss out on vital information by signing up for this valuable daily update.

A Shift in Leadership at TechCrunch

Initially, the intention was to announce the expansion of the team responsible for compiling the Daily Crunch. Moving forward, I, Alex, will be leading the writing and curation of its core segments.

We will also benefit from contributions from Walter and Annie, focusing on content from Extra Crunch – exemplified by today’s Exchange column – alongside community updates provided by Drew and others. This broadened collaboration promises to enhance the newsletter’s quality.

However, the announcement of a significant corporate restructuring – the sale of TechCrunch’s parent company to a new entity – understandably overshadows our internal team updates.

Further details regarding this transaction can be found in TechCrunch’s comprehensive coverage, accessible here. We are committed to providing ongoing updates as the situation develops, sharing information as it becomes available.

I am genuinely thrilled to have the opportunity to connect with you daily through this newsletter. My gratitude goes to Anthony Ha for his dedicated stewardship of the Daily Crunch over an extended period.

But a substantial volume of startup and tech news requires our attention. Therefore, let us temporarily set aside discussions of private equity acquisitions within the media landscape and focus on the topics of greatest interest.

Key Updates and Developments

The recent changes within TechCrunch’s corporate structure are noteworthy, but the daily flow of innovation continues unabated.

We remain dedicated to delivering timely and insightful coverage of the technology sector. This includes reporting on emerging trends, funding rounds, and the latest product launches.

• Updates on the corporate sale will be provided as they emerge.
• The Daily Crunch team has been expanded to improve content quality.
• Startup and tech news will remain the primary focus.

Duolingo's Rise: An Examination of the EC-1

Over the past year, TechCrunch has provided extensive coverage of the rapidly expanding edtech industry, largely due to the efforts of Natasha Mascarenhas. Her arrival at TC coincided with the onset of the pandemic, positioning her reporting on educational technology as remarkably timely as global lockdowns commenced.

The shift to remote learning became widespread, attracting substantial venture capital investment – totaling billions of dollars – into this emerging trend.

As we potentially move beyond the peak of the COVID-19 pandemic, Natasha has recently released an in-depth analysis of a particularly compelling company within the edtech landscape: Duolingo. Her new EC-1 investigation reveals that Duolingo has grown to encompass 500 million users and achieved $190 million in bookings for the year 2020.

The edtech sector has matured into a significant commercial force. Historically considered a challenging area for venture capital, it is now a highly active and competitive market.

I am still processing the comprehensive 10,000+ word report on Duolingo that has just been published. However, it is already evident that Natasha has delivered exceptional work on this assignment.

Startups and Venture Capital: Assessing the Current NFT Landscape

Let's examine recent developments in the startup world. Several noteworthy funding rounds and company strategies have emerged, offering insights into current market trends.

First, consider Zoomo, an Australian electric bicycle firm – previously operating as Bolt Bikes – focused on providing subscription access to its e-bikes for delivery personnel. Recent reporting indicates the company gained prominence through collaborations with Uber Eats and DoorDash, offering discounted weekly subscriptions to delivery workers.

Having expanded its fleet to 10,000 bikes globally, Zoomo now aims to collaborate with a wider range of companies to equip their employees with its hardware. The company has secured $12 million in new funding, and it will be interesting to observe how this capital fuels its growth.

Next, Gatheround, formerly Icebreaker, has raised $3.5 million in a seed funding round. This company provides solutions for remote teams to facilitate more engaging video conferencing experiences. Effective remote communication tools are increasingly valuable, and Gatheround aims to address this need.

According to Mary Ann Azevedo, the funding round was co-led by Homebrew and Bloomberg Beta, with participation from prominent angel investors including Stripe COO Claire Hughes Johnson, Meetup co-founder Scott Heiferman, Li Jin, and Lenny Rachitsky.

The year 2021 has seen a significant rise in NFTs, and it’s difficult to discuss startups without acknowledging this trend. Lucas Matney offers a perspective on the current state of the cryptoverse.

The question arises: why limit NFT creation to a specific number? The potential for generating vast quantities exists. While many are actively engaged with projects like Bored Ape Yacht Club and digital horse breeding, a sense of skepticism remains regarding the long-term viability of these concepts. Ultimately, this period represents a focus on establishing ownership of digital assets.

Additional Resources:

• Hangry, an Indonesian cloud kitchen startup aiming for global expansion in the food and beverage industry, has secured $13M in Series A funding.
• Genies, a startup specializing in avatars, has received $65 million in funding led by Mary Meeker’s Bond.

Twitter and Clubhouse: A Growing Competition

Significant developments occurred today within the realm of major technology companies. Notably, Twitter’s commitment to live audio functionality is substantial. This isn't a peripheral endeavor lacking dedicated resources from the platform’s development team.

Twitter has announced the expansion of Twitter Spaces accessibility to all accounts possessing 600 or more followers, encompassing both iOS and Android platforms, as reported by Sarah.

Furthermore, the company has formally revealed upcoming features, including Ticketed Spaces, scheduling capabilities, reminder settings, co-hosting support, and enhanced accessibility options. The competition between Twitter and Clubhouse is intensifying, and excitement is building.

App Store Revenue Sharing Under Scrutiny

A central issue impacting major tech firms—and the focus of the legal dispute between Epic Games and Apple—concerns the percentage of revenue retained by app stores. The longstanding 30% rate, which Apple appears resolute in maintaining despite negative public perception, is now facing challenges.

Epic Games’ acquisition of ArtStation resulted in an immediate reduction of the commission rate from 30% to 12%, aligning with Epic’s own games store policy. Microsoft has also previously lowered its commission to 12%. This shift is creating financial pressure on Apple as more favorable terms for creators emerge.

Dell's Strategic Asset Sale

In other Big Tech news, Dell is divesting Boomi to alleviate debts incurred from the EMC acquisition. Detailed coverage of this transaction is available from Ron Miller.

Insights and Assessments from Extra Crunch

Analytics as a Service: The increasing rationale for enterprise outsourcing.

Return on experience (RoX) is a key performance indicator gaining prominence. However, many nascent companies lack the means to accurately gauge RoX, as it necessitates a comprehensive methodology beyond the scope of most early-stage, growth-oriented businesses.

The analytics-as-a-service (AaaS) market is experiencing expansion due to startups seeking to formulate a data strategy while simultaneously preserving engineering capabilities. AaaS can assist in establishing achievable goals if your objective is to gain customer acquisition insights, reduce technical expenditures, and accelerate decision-making.

Strategies for attracting substantial investment to your direct investing platform.

Evolving regulations and growth spurred by the pandemic have generated considerable new wealth and heightened interest in direct investment opportunities.

Investor David Teten analyzed various online platforms functioning as market facilitators in a recent guest contribution to Extra Crunch, aiming to understand their methods for attracting investors and fostering greater participation.

Teten emphasizes that these platforms operate with significant risk, as a successful direct-investing platform must function with the same fluidity as a conventional investment fund.

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

Engage with Our Community

We invite you to connect with us on our recently launched Extra Crunch Discord server. The impetus for establishing a Discord server stemmed from the challenges of maintaining productive conversations amidst the fast-paced nature of Twitter.

This platform provides a dedicated space for TechCrunch journalists, startup founders, venture capitalists, and other industry professionals to discuss a wide range of topics.

Upcoming Extra Crunch Live Event

We are delighted to announce that Rick Heitzmann, Managing Partner at FirstMark Capital, and Court Cunningham, CEO of Orchard, will be featured guests on an upcoming Extra Crunch Live broadcast.

This event is scheduled for May 5th at 3:00 PM EDT / 12:00 PM PDT. Registration is complimentary and can be completed here.

Join the conversation and gain valuable insights from leading figures in the tech industry.