Akamai Confirms Internet Outage Not Due to Cyberattack - Daily Crunch

Daily Crunch: July 22, 2021

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Greetings, and welcome to Daily Crunch for July 22, 2021. A substantial amount of news is featured today, distinguished by a unique balance of coverage.

Typically, our reports focus heavily on startup activity, supplemented by updates from major technology corporations. However, today’s edition presents a significant volume of information from both sectors, so prepare for a comprehensive overview.

Buttigieg to Appear at Disrupt

U.S. Secretary of Transportation, Pete Buttigieg, will be attending the upcoming Disrupt event.

Given TechCrunch’s extensive coverage of areas like micromobility, conventional transportation, and the evolution of transit systems, several key inquiries have been prepared for the Secretary.

— Alex

Key areas of focus will include the future of transportation infrastructure and policy.

The event promises insightful discussion regarding the challenges and opportunities within the transportation sector.

We anticipate a valuable exchange of ideas with Secretary Buttigieg.

TechCrunch's Leading Stories

Here's a summary of the top three tech news items reported by TechCrunch today, offering insights into funding, venture capital, and internet infrastructure.

Gopuff Secures Additional Funding

Gopuff, the delivery service supported by SoftBank, is reportedly in the process of securing a new round of investment. TechCrunch initially reported this development, indicating a potential $1 billion raise.

This funding round would value the company at approximately $15 billion, as confirmed by Axios. The prospective capital injection arrives amidst significant investment activity in the instant-delivery grocery sector globally.

Canada's Venture Capital Surge

TechCrunch’s ongoing analysis of startup ecosystems worldwide has highlighted a particularly strong performance in Canada’s venture capital market. The report, covering global, U.S., Indian, European, and Latin American markets, reveals a substantial increase in venture funding for Canadian startups.

Canadian startups are experiencing a remarkably successful year in attracting significant venture capital investments. This indicates a thriving and expanding startup landscape within the country.

Akamai Outage and Internet Resilience

A disruption within Akamai’s DNS system caused a widespread internet outage today, impacting numerous online services. The incident affected a considerable portion of the internet’s infrastructure.

The outage resulted in service interruptions for various platforms, including the Couchbase website, coinciding with preparations for an interview with its CEO regarding their recent IPO. While services have been restored, the event serves as a reminder of the internet’s inherent fragility.

The internet, despite common perceptions, isn’t a perfectly reliable system; it’s better described as a complex network reliant on temporary solutions and ongoing maintenance.

Startups and Venture Capital Updates

The startup ecosystem continues to evolve rapidly. Recent developments span passwordless technologies, emerging venture funds, and advancements in robotics. For those seeking deeper insights, Mike Duboe of Greylock Partners offers guidance on defining growth strategies and effective team building.

Recent Funding Rounds and Initiatives

• Mindtech Secures $3.25M for Innovative Surveillance Technology: Based in the U.K., Mindtech is pioneering a novel approach to CCTV surveillance. Their service utilizes digital humans for camera training, effectively mitigating privacy concerns. This represents a potentially groundbreaking application of venture capital.
• Sendlane Attracts $20M to Enhance Customer Loyalty: Sendlane has received a significant investment of $20 million. The company aims to empower businesses with data-driven insights into customer behavior, fostering increased loyalty and spending. While some may perceive this as intrusive, it reflects a growing trend in data-centric marketing.
• All Raise Introduces Virtual Bootcamp for Underrepresented Founders: Despite record-breaking venture funding levels, equitable distribution remains a challenge. Data suggests a concerning trend of decreasing diversity in VC funding. All Raise is actively addressing this disparity through a virtual bootcamp designed to support women and nonbinary founders in securing capital.
• Magic Raises $27M to Revolutionize Authentication: Magic, a startup focused on simplifying digital access, has secured $27 million in funding. The company's technology enables developers to easily integrate passwordless authentication methods with minimal code.
• Index Ventures Expands with $3 Billion in New Funds: Index Ventures has successfully raised nearly $3 billion in new funds, a substantial increase compared to its previous fundraising efforts. This influx of capital is fueled by the current economic climate, characterized by low interest rates and abundant available capital.

For enthusiasts of robotics, a comprehensive industry digest is now available on TechCrunch. This resource provides valuable updates and insights into the latest advancements in the field.

The Potential for Growth in Latin American Last-Mile Delivery

Consumers in numerous areas now benefit from extensive fulfillment centers, streamlined logistics, and widespread internet connectivity, enabling them to order items like groceries and household goods with the expectation of same-day delivery.

However, in Latin America, the absence of advanced technological infrastructure results in simpler, though often less efficient, delivery processes.

Deliveries typically proceed directly from a retailer's warehouse to the customer’s location, but these supply chains frequently rely on manual methods like spreadsheets and handwritten records.

The implementation of algorithms for route optimization or automated driver dispatch is currently rare within the Latin American retail logistics industry, according to Bob Ma, a partner at WIND Ventures.

Nevertheless, increasing consumer demand and rising investment in last-mile delivery companies are signaling a significant shift for the region.

Latin America has experienced a 50% expansion of its middle class over the past ten years.

Furthermore, with e-commerce currently representing only 6% of total retail sales, the region is poised for substantial growth, evidenced by the emergence of several unicorn companies and the potential for many more.

The Current Landscape

Last-mile delivery in Latin America differs significantly from more developed markets.

While the core process – moving goods from a retailer to the end consumer – is straightforward, the operational complexities are often amplified by infrastructural limitations.

Investment and Future Outlook

The influx of capital into last-mile startups is a key indicator of the region’s potential.

This investment is expected to drive the adoption of technologies that will optimize delivery routes and improve overall efficiency.

• The growth of the middle class is a primary driver of e-commerce expansion.
• Low current e-commerce penetration rates indicate significant room for growth.
• Increased investment is fueling innovation in the logistics sector.

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

Big Tech Inc.

Recent developments in the transportation sector are noteworthy, and will be followed by an overview of other significant happenings within the broader Big Tech landscape.

TechCrunch’s transportation specialist, Kirsten Korosec, was queried by Daily Crunch regarding the surge in news originating from her area of expertise. She playfully responded, expressing a desire for the influx to cease, but then elaborated that the numerous commitments from automakers to transition to fully electric vehicle lines suggest a continuing stream of announcements concerning battery capacity and raw material procurement.

Here's a summary of the latest news:

• Rivian’s Expansion Plans: Following recent production setbacks, the electric vehicle manufacturer Rivian is actively exploring locations for a second production facility. This indicates sustained momentum in the electric vehicle market.
• Tesla Secures Nickel Supply: Tesla is establishing a direct sourcing relationship with BHP, a major commodity producer, to secure its nickel supply. Competition for essential raw materials required for electric vehicle production is anticipated to intensify as the market matures.
• Mercedes-Benz Invests in Battery Production: Mercedes-Benz is planning to construct eight battery plants, a substantial investment reflecting the anticipated demand for electric vehicle batteries. This signals a definitive shift away from internal combustion engines.
• Uber Acquires Transplace: Uber is expanding its logistics capabilities through the acquisition of Transplace, a digital logistics company, for $2.25 billion. This move aligns with Uber’s broader ambitions in the freight sector and its goal of achieving adjusted profitability this year.
• Waymo Expands to Pittsburgh: Waymo is establishing a new office in Pittsburgh, intensifying competition for talent in the autonomous vehicle industry.

Beyond transportation, here are updates from other major technology companies:

• Spotify Integrates with Giphy: Spotify is partnering with Giphy to allow users to discover music through GIFs.
• Microsoft Acquires CloudKnox: Microsoft continues its acquisition spree of cybersecurity startups with the purchase of CloudKnox. This marks the fourth such acquisition by Microsoft this year.
• Visa Purchases Currencycloud: Following a previous unsuccessful attempt to acquire Plaid, Visa has acquired Currencycloud, a provider of fintech APIs, for nearly $1 billion. This acquisition will integrate Currencycloud’s remittance and currency-transfer technology into Visa’s offerings.

Growth Marketing Insights from TechCrunch Experts

Startup founders are being contacted to share their preferred sources for current growth marketing strategies. A survey has been distributed to gather this information.

Below is a testimonial received from one of the participants.

Marketing Professional: Adam DuVander of EveryDeveloper.

Referral Source: Karl Hughes, Draft.dev.

Feedback: Adam’s expertise extends to authoring a book focused on developer marketing. He leverages a strong background as both a developer and advocate to ensure clients establish effective strategies.

Key Strengths Highlighted

The recommendation emphasizes Adam DuVander’s ability to formulate successful strategies. This is based on his practical experience within the developer community.

His dual perspective – as a developer and advocate – is considered a significant asset. It allows him to craft marketing approaches that resonate with technical audiences.

Survey Participation Encouraged

Founders are encouraged to complete the survey to contribute their insights. This will help identify leading experts in the field of growth marketing.

The collected data will be valuable for startups seeking to optimize their marketing efforts. It provides a peer-reviewed resource for best practices.

About the Recommendation

Karl Hughes of Draft.dev specifically recommended Adam DuVander. This endorsement highlights Adam’s comprehensive understanding of developer marketing.

The testimonial underscores the importance of experience in developing effective marketing plans. A deep understanding of the target audience is crucial for success.