daily crunch: transmit security’s $543m series a is one for the record books

Daily Crunch: June 22, 2021

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Welcome to Daily Crunch

Greetings and a warm welcome to Daily Crunch for June 22, 2021. Today’s edition features updates on startup products, details of recent funding events, and news from major technology companies.

Before diving into the details, remember to register for the TechCrunch Spotlight: Pittsburgh startup Pitch-Off.

Equity Podcast Live Taping

The team behind the Equity podcast will be conducting a live recording session this Thursday. This event promises to be engaging and informative. I plan to attend!

— Alex

TechCrunch's Leading Three Stories

Recent developments at Twitter are highlighted, alongside new competition for Google in the search engine market, and an analysis of current early-stage startup funding trends.

Twitter Introduces Super Follows and Ticketed Spaces

Twitter has initiated the deployment of Super Follows and ticketed Twitter Spaces, continuing its ongoing product enhancements.

The Super Follows feature allows eligible creators – those with at least 10,000 followers and a consistent tweeting schedule of approximately once daily – to monetize their content by charging subscribers between $2.99 and $9.99 monthly for exclusive tweets.

In addition to Super Follows, the platform is also introducing ticketed access to Twitter Spaces, its live audio feature.

Brave Launches Independent Search Engine

A new competitor to Google has emerged with the launch of Brave Search.

Brave Search is positioned as a privacy-focused alternative to Google, built upon an independent index and designed to avoid user tracking.

TechCrunch has provided a link for users to test the search engine and experience its features firsthand.

Shifting Dynamics in Early-Stage Startup Funding

TechCrunch has investigated the current landscape of seed and early-stage venture capital funding for startups.

The investigation was prompted by observations suggesting a potential shift in the timing of funding rounds, with Series A rounds occurring later and Series B rounds arriving sooner than previously typical.

Insights gathered from numerous investors reveal that some startups are now beginning to raise capital immediately following the closure of their previous funding round.

This indicates an increasingly competitive and fast-paced environment for early-stage companies seeking investment.

Startups

A significant number of companies secured funding today, prompting us to divide our startup coverage into two distinct sections. The first will detail product-related announcements, while the second will focus on recently completed funding rounds. Let's begin:

• Airbank is developing a financial service geared towards small and medium-sized businesses, designed to consolidate all company bank accounts and financial information. Further details can be found in this article.
• Racial Inequity Drawdown presents a framework intended to “tackle racial disparities in startup investment and the wider economic landscape,” as reported by TechCrunch.
• Squad has introduced a new mobile application facilitating connections between friend groups through time-sensitive audio messages. Users now have a 24-hour window to listen to messages from their friends, following Squad’s strategic shift towards smaller, more personal groups.

Shifting our attention to funding activities, the volume of rounds is extensive. Here’s a curated selection of noteworthy examples:

• Mollie secures $800 million for its payment integration platform: The Dutch startup Mollie has achieved a valuation of $6.5 billion following a substantial funding round of almost $1 billion. The company “offers a solution for businesses to integrate payment processing into websites, documents, and other services via an API,” according to TechCrunch. This recent funding and valuation suggest continued potential for growth within the payments industry.
• In the realm of fintech, Australian company Zeller recently raised AUD$50 million, resulting in a AUD$400 million valuation. They specialize in providing point-of-sale (POS) and card services for small and medium-sized businesses.
• Quanergy Systems to become publicly traded: The company will go public through a Special Purpose Acquisition Company (SPAC). Their investor deck is available for review, detailing their financial projections. This development indicates that the SPAC trend remains active, despite a perceived slowdown. Furthermore, founders at the Series-B stage are already receiving inquiries from SPACs, suggesting further and potentially unconventional SPAC deals are on the horizon.
• Oyster reaches half-unicorn status: This milestone was achieved when the startup, focused on supporting employees working internationally, raised a $50 million Series B round, valuing the company at nearly $500 million.
• Vantage obtains $4M to optimize AWS expenditure: The substantial growth experienced by Amazon’s AWS cloud service has been fueled by increased customer spending. However, some AWS customers are seeking ways to reduce their costs, and Vantage aims to assist them in doing so.
• G2 raises $157 million to aid software selection: The expansive nature of the software market means numerous competitors can thrive even within specific niches. The significant spending in this sector necessitates informed decision-making regarding software choices, and G2 intends to provide that support. The company has now attained unicorn status after receiving a nine-figure investment, resulting in a valuation exceeding $1 billion.
• Transmit secures $543 million in a Series A to eliminate passwords: The company is now valued at $2.2 billion and plans to utilize the new capital to “broaden its market presence and invest in key global areas to facilitate organizational growth.” TechCrunch endorses any initiative aimed at phasing out passwords.

Determining Founder Salary in a SaaS Company

Research conducted by Anna Heim, involving interviews with SaaS entrepreneurs and investors, explores appropriate self-compensation for founders in the early stages of company development.

Companies led by CEOs who prioritize a modest personal salary generally demonstrate stronger long-term performance. However, several factors influence this decision, including location, personal commitments, and desired lifestyle.

Chris Sosnowski, the founder of Waterly, recently adjusted his personal compensation to $14 per hour. Previously, he had earned a salary exceeding $100,000 in a former role.

Sosnowski shared with Anna that they initially operated without his salary for over a year. He explained his ability to maintain a lifestyle with limited discretionary spending, which enabled this approach throughout 2020.

A crucial question for founders is: what level of personal sacrifice are you prepared to accept?

(Extra Crunch is a membership program designed to accelerate the progress of founders and startup teams. Registration is available here.)

Big Tech Inc.

Recent news cycles continue to be dominated by interactions between major technology companies and governmental bodies. It has been reported that the United States government is considering a review of Amazon's proposed acquisition of a substantial film production company.

Furthermore, regulatory scrutiny of Google is expanding internationally. India’s competition authorities have initiated an investigation into Google’s position within the smart television marketplace.

Echoing these concerns, the European Union is currently undertaking an antitrust investigation focused on Google’s advertising technology suite.

Labor Movements

Alongside these regulatory challenges, efforts to organize Amazon’s workforce are gaining momentum, even within the United States.

The movement to establish labor unions among Amazon employees is not limited to international locations, but is actively progressing domestically.

Ongoing Investigations

• The U.S. government is potentially reviewing Amazon’s movie studio acquisition.
• India is investigating Google’s dominance in the smart TV sector.
• The EU is examining Google’s adtech software for potential antitrust violations.

These developments highlight the increasing oversight faced by large technology firms globally. The investigations span multiple continents and address a range of concerns, from market dominance to labor practices.

Amazon and Google are both facing significant challenges from regulators worldwide, impacting their business strategies and future growth.

Growth Marketing Insights from TechCrunch Experts

We are currently showcasing selections from the responses received through our recent survey. Further insights will be shared throughout the week.

This post features a noteworthy recommendation that was provided.

Marketer Spotlight: Ladder

Marketer Name: Ladder

Recommended Strategy

Recommendation: Ladder demonstrates a strong understanding of our requirements. Through rigorous A/B testing of varied messaging tailored to distinct user personas, valuable insights are revealed regarding effective communication strategies.

This process allows for a deeper comprehension of both users and potential customers. The data generated is particularly impactful for a company in its current phase of development.

Presenting these findings to investors resulted in a highly positive reception.

Share your own recommendations by submitting them here.

Engaging with the Startup Ecosystem

A recent inquiry from Natasha Mascarenhas sparked a discussion regarding the qualities that define an exceptional investor. We extended this question to our audience, and numerous responses have been received.

Voting remains open, and we encourage further contributions to this ongoing conversation.

Furthermore, we are currently accepting applications for our Pittsburgh Spotlight Pitch-Off. If you are aware of promising startups within the Pittsburgh area, please disseminate this information and encourage submissions.

Don't forget to register for the event, scheduled for June 29th, to witness these innovative companies present their ideas.

Seeking Input on Investor Qualities

The initial question posed by Natasha Mascarenhas centered on identifying the characteristics of a truly effective investor.

We actively solicited feedback from our community, and a substantial number of individuals have already shared their perspectives.

Your participation is valued, so please take the opportunity to cast your vote and offer your insights.

Pittsburgh Startup Pitch-Off – Last Call for Submissions

This serves as a final reminder for startups operating within the Pittsburgh ecosystem to apply for inclusion in our Pitch-Off event.

Sharing this opportunity with your network can help us identify and showcase the region’s most promising ventures.

Registration for attendance on June 29th is also highly recommended to experience the event firsthand.

• Key Dates: June 29th
• Location: Pittsburgh
• Focus: Showcasing local startups

We believe that fostering a strong community is vital for the growth of the startup landscape.