Toptal Sues Andela: Clone Marketplace Allegations - Daily Crunch

Daily Crunch: June 11, 2021

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A Brief Note & Transition

Greetings, and welcome to today’s Daily Crunch for June 11, 2021. Please note that I will be away next week. During my absence, my long-time friend and colleague, Henry Pickavet, will be assuming responsibility for this newsletter.

He possesses superior writing skills and a more engaging style than myself, so you might view his contribution as a temporary enhancement. I anticipate resuming my duties in approximately a week.

TC Early Stage 2021: Marketing & Fundraising

Limited availability remains for discounted tickets to TC Early Stage 2021: Marketing & Fundraising. This is a reminder for those seeking tickets and also interested in cost savings.

Consider securing your place before these affordable options are exhausted.

Tech Industry Updates: A Roundup

The technology sector is currently navigating the complexities of the post-pandemic work environment. Smaller tech companies are closely observing the decisions made by larger players, such as Google, to guide their own strategies.

Google often serves as a key indicator of cultural trends within the tech industry. However, all tech companies, regardless of size, are actively developing plans to satisfy both management’s desire for control and employees’ need for flexibility to prevent widespread resignations.

Didi's Upcoming IPO

The initial public offering of Didi is generating significant excitement. For those who followed the IPOs of Uber and Lyft, this event promises to be equally noteworthy.

Didi’s financial details and the venture capital firms that stand to benefit are detailed in recent TechCrunch coverage.

Intense Competition in the Tech Talent Market

The demand for skilled tech professionals remains exceptionally high, creating a fiercely competitive labor market. This competition has escalated to the point of legal action between companies specializing in remote tech talent.

Toptal has initiated a lawsuit against Andela, alleging the misappropriation of confidential information to replicate their business model. The claim centers around “the theft of trade secrets” according to reports.

This legal dispute underscores the intense pressure and high stakes within the tech talent acquisition landscape.

The situation highlights how critical securing and retaining skilled technology professionals has become for businesses.

Startups and Venture Capital Trends

The market for Vertical SaaS solutions remains robust. Evidence of this can be seen in Fresha’s recent $100 million funding round.

Fresha delivers software specifically tailored for businesses in the health, beauty, and wellness sectors, including hair and nail salons, and yoga instructors. These specialized SaaS companies frequently benefit from both recurring software subscription revenue and substantial payments processing income.

Continued Investment in Neobanks

Funding continues to flow into neobanking startups globally, reinforcing the belief that capital remains readily available for these ventures. Recent reports indicate that Open, a neobank based in Bangalore, is nearing a $100 million funding round.

Discussions are underway with potential investors including Temasek and General Atlantic. Should the deal finalize, Open’s valuation could reach $600 million, as reported by TechCrunch.

Edtech's Sustained Growth

Despite the easing of COVID-19 restrictions and a global economic recovery, the edtech sector continues to attract investment. Companies that experienced growth during the pandemic are now securing further funding.

Classplus, an Indian edtech company, is reportedly poised to raise $30 million from Tiger Global. This investment could value the company at up to $250 million, representing a significant financial backing.

Insurtech Remains a Focus

Global interest in insurtech startups is also demonstrably strong. European venture capitalists have indicated a particularly active market in this space.

While the European insurtech market is busy, it’s noted that the level of activity may not yet match the intensity observed in the United States for insurance technology startups.

The Insurtech Sector Gains Momentum in Europe and North America

Recent analysis by The Exchange has focused on the European insurtech landscape, gathering insights from prominent European venture capitalists and detailing significant recent funding rounds to assess the current state of the market.

Key Industry Voices

The investigation included interviews with leading figures in the insurtech space, including:

• Alex Timm, Chief Executive Officer of Root
• Dan Preston, Chief Executive Officer of Metromile
• Luca Bocchio, Partner at Accel
• Florian Graillot, Investor at Astorya.vc
• Stephen Brittain, Director and Founder of Insurtech Gateway

This year has witnessed several European insurtech companies achieving unicorn status. These include Bought By Many, a provider of pet insurance, Zego, based in London, and Alan, a French company that secured $220 million in funding.

Early Stages of Innovation

Brittain suggests that European insurtech startups are still in the nascent phases of development. He believes they have demonstrated only a limited portion of their potential within a market comparable in size to the banking industry.

The potential for disruption and growth remains substantial, indicating a dynamic period for the insurtech sector on both continents.

(Access to exclusive insights and resources for founders and startup teams is available through Extra Crunch. Registration can be completed here.)

Big Tech Inc.

A pervasive weakness in cybersecurity is evident across industries. This week, Volkswagen experienced a data breach affecting 3.3 million customers, stemming from a vulnerability with a third-party provider.

The escalating frequency of these incidents suggests a need for significantly increased penalties. These fines must reach a level that genuinely incentivizes corporations to prioritize and improve their security measures.

Apple's Automotive Pursuits

Apple has recently brought on Ulrich Kranz, the former co-founder and CEO of electric vehicle firm Canoo. While the specifics of his role remain undisclosed, this move signals Apple’s continued investment in automotive technology.

Speculation is rife regarding Kranz’s projects within Apple. Many anticipate the development of a radically designed vehicle, potentially featuring an unconventional form factor and multiple integrated screens.

Apple Design Awards

The company also revealed the recipients of its annual “Design Awards.” A comprehensive overview of the winning applications and innovations can be found on TechCrunch.

TechCrunch Experts: Growth Marketing

TechCrunch is currently seeking recommendations for skilled growth marketers. Expertise in areas such as SEO, social media, and content creation is highly valued.

Growth marketers are encouraged to share a survey with their clients. This feedback will directly inform TechCrunch’s future coverage of growth marketing strategies and best practices.

The collected data will be used to shape our editorial focus. Currently, a guest contribution from Jamie Viggiano, CMO at Fuel Capital, is available: “5 questions startups should consider before making their first marketing hire.”

A legal dispute has emerged between Toptal and Andela. Toptal alleges that Andela has created a near-identical replica of its freelancer marketplace.

The lawsuit centers around claims of intellectual property infringement and unfair competition. Toptal contends that Andela’s platform is a deliberate imitation of its own business model.