OnlyFans Bans Explicit Content: Daily Crunch

Daily Crunch: August 19, 2021

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Greetings, and a warm welcome to Daily Crunch for August 19, 2021. Today presents a wealth of compelling news and updates.

TechCrunch Newsletter and Upcoming Event

Furthermore, a new newsletter curated by the TechCrunch team is now available. Details regarding this can be found shortly.

Prior to proceeding, we are pleased to announce that Daniel Dines, CEO of UiPath, will be a featured speaker at our October SaaS event.

The event is anticipated to be highly engaging, and, as current terminology suggests, exceptionally exciting. — Alex

The TechCrunch Top 3

Recent developments include significant shifts within the content creation landscape and venture capital distribution. Here's a breakdown of the top three stories covered by TechCrunch.

OnlyFans Content Policy Changes

OnlyFans is implementing a change in policy, moving away from its established approach to adult content. This decision caused considerable discussion on social media platforms, including a temporary disruption to Twitter and a strain on TechCrunch’s servers.

TechCrunch attempted to gain clarification from OnlyFans regarding the specifics of “sexually explicit content” and the anticipated financial consequences of this shift. However, the company did not respond to these inquiries.

Chicago's Venture Capital Surge

The COVID-19 pandemic significantly altered the venture capital market in 2020. Notably, Chicago experienced a positive change in its financial landscape during this period.

Since the latter half of 2020, substantial investment capital has been directed towards startups located in Chicago. An investigation was undertaken to determine the factors contributing to this trend and its underlying causes.

Facebook's VR Meeting App: Mixed Reactions

Facebook has launched a new VR service designed to replicate the experience of a conference room meeting. This application aims to provide a virtual office environment for remote workers.

Initial reviews, including one from Lucas Matney of TechCrunch, were cautiously optimistic. The technology was highlighted as potentially beneficial for individuals facing challenges with physical commuting.

However, a significant number of users expressed negative opinions, characterizing the app as poorly designed and suggesting it may be a strategic effort by Facebook to divert attention from ongoing regulatory concerns rather than a genuine advancement in VR technology.

Startups/VC

A passion for robotics and a desire for increased automation are now catered to with a dedicated resource. For months, Brian Heater’s robot summaries have been featured on Daily Crunch. However, a new dedicated newsletter, Actuator, is being launched to focus solely on this exciting field.

Key Startup News

• Cannabis Delivery Consolidation: A significant development in the cannabis delivery sector is occurring with Eaze’s acquisition of Green Dragon. For those unable to access cannabis delivery services, wider availability is anticipated in the future. Delivery may soon be facilitated by an Eaze courier.
• Bird Expands into E-Bikes: While preparing for a public offering through a SPAC and releasing its Q2 financial results, Bird has also developed an electric bike. This innovation supports the idea of transforming urban streets into dedicated bike paths and green areas.
• Global Regulatory Compliance Automation: Regology offers a solution for navigating international legal frameworks. As remote work and global commerce become increasingly prevalent, this automated compliance service addresses a growing need. Interestingly, a venture capital firm named “Acme Capital” does indeed exist.
• Launch House Secures Funding: Launch House has raised $3 million to expand its venture community. The company is creating a startup community that blends physical and digital learning environments.
• Nacelle Receives Series B Funding: Nacelle, a headless commerce solution, has secured $50 million in Series B funding led by Tiger Global. This investment reflects the growing demand for this type of commerce technology.
• Databricks Valuation Analysis: An analysis of Databricks’ potential valuation at $38 billion was recently published on TechCrunch. The article provides insights into the company’s current standing and future prospects.

These developments highlight the dynamic nature of the startup landscape and the ongoing innovation across various sectors, from robotics and cannabis delivery to regulatory compliance and e-commerce.

Corporate Development: A Founder's Guide to Exits and Partnerships

Todd Graham, a Vice President at Venrock, offers crucial guidance to founders of venture-backed companies: prioritizing a return on investment is a strategic necessity.

He has compiled a comprehensive resource on corporate development, detailing the three primary types of acquisitions and providing insights into navigating interactions with investment bankers.

Graham also clarifies why forming a partnership with a large corporation doesn't invariably represent the optimal course of action.

His central recommendation, applicable to all potential avenues, is straightforward: “Always accept the meeting.”

Even in unfavorable circumstances, these meetings can expand your professional network and increase your company’s visibility.

Conversely, the most advantageous outcome could be the initiation of further discussions.

Understanding Acquisition Categories

Graham outlines three prevalent acquisition types:

• Strategic Acquisitions: These occur when a company seeks to integrate your technology or team to enhance their existing offerings.
• Financial Acquisitions: Here, a private equity firm or similar entity acquires your company based on its financial performance and growth potential.
• Acqui-hires: Focused primarily on acquiring your talent, these acquisitions are driven by the desire to incorporate your team’s expertise into the acquiring company.

Working with Investment Bankers

When engaging with bankers, Graham suggests focusing on those with a proven track record in your specific industry.

He emphasizes the importance of clearly defining your objectives and ensuring the banker understands your priorities throughout the process.

Partnerships vs. Acquisitions

While partnerships can offer initial benefits, Graham cautions against viewing them as a substitute for a potential acquisition.

He notes that partnerships often require significant ongoing management and may not ultimately deliver the same financial returns as an exit event.

(Access to exclusive content and resources is available through Extra Crunch, our membership program designed for founders and startup teams. Sign up is available here.)

Big Tech Inc.

Twitter is actively expanding the capabilities of its Revue newsletter platform, integrating it more closely with the core Twitter experience.

This development, while anticipated, is a positive step forward.

The question remains whether Twitter can effectively compete with established newsletter platforms like Substack.

Facebook's Response to TikTok

Facebook is launching its Reels feature in the United States, directly challenging TikTok’s dominance in the short-form video market.

This provides users with an alternative, allowing them to share video content through a platform where data control resides with Facebook rather than ByteDance.

TikTok Under Scrutiny

TikTok’s intentions to gather biometric data from its users are facing opposition from members of the U.S. Congress.

Concerns stem from the influence of the Chinese Communist Party, which holds a position on the board of ByteDance’s primary Chinese entity.

This situation has raised significant privacy and security concerns among lawmakers.

GM and 5G Integration

GM is collaborating with AT&T to incorporate 5G connectivity into its vehicles.

The practical applications and necessity of this integration are still unclear, particularly given the current availability and reach of 5G infrastructure.

However, the partnership signifies a move towards increasingly connected automotive experiences.

TechCrunch Experts: Growth Marketing

Startup founders are being contacted to identify their preferred sources for current growth marketing strategies.

A survey has been distributed to gather this information; participation is encouraged through the provided link.

Below is a testimonial received from one of those surveyed.

Marketer: Nate Dame, Profound Strategy

Recommended by: Diana Tamblyn, Danaher

Testimonial: “A comprehensive search was undertaken to locate a suitable content partner.

Their level of expertise, along with positive references obtained from three separate contacts, were particularly noteworthy.

Furthermore, their ability to provide insightful growth forecasting was a key factor in the recommendation.”