Thirdweb Raises $5M with Backing from Mark Cuban and Gary Vaynerchuk - Daily Crunch

Daily Crunch: December 13th – A Web3 Focus

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Today's Highlights: Crypto and Beyond

Greetings and welcome to the Daily Crunch for Monday, December 13th. The central focus today revolves around cryptocurrency, or web3, as it’s increasingly known. This emphasis stems from several key developments.

Notably, an NFT-based project is venturing into game development. Furthermore, a new startup is aiming to integrate the functionalities of cryptocurrency with no-code platforms.

Web3 Startup Activity

Our coverage today includes multiple additional pieces of news concerning startups operating within the web3 space. These developments demonstrate the continued growth and innovation within this sector.

Beyond Cryptocurrency: Traditional Tech News

Alongside the web3 focus, we continue to report on the standard flow of funding announcements, company valuations, and other significant tech industry events.

However, prepare for a substantial amount of discussion surrounding tokens and the evolving landscape of decentralized technologies! —Alex

TechCrunch's Top 3 Updates

Here's a rundown of the most significant tech news as reported by TechCrunch.

SenseTime IPO Paused

The initial public offering of SenseTime, a leading Chinese AI company, has been temporarily suspended. The offering, anticipated to generate approximately $767 million through a listing in Hong Kong, is facing delays.

This pause follows the company's inclusion on a U.S. technology blacklist announced on Friday. Given the recent delisting of Didi from U.S. markets, this situation presents a challenge to Chinese tech companies seeking liquidity.

Bored Ape Yacht Club Enters Gaming

A video game is currently in development based on the Bored Ape Yacht Club NFT collection. Despite differing opinions on the NFT series itself, this move signals a potential trend.

Should the game achieve success, it could inspire the creation of similar games leveraging other NFT intellectual property. However, questions remain regarding the potential market size, considering the limited supply of only 10,000 images within the series.

UK Scrutinizes Microsoft-Nuance Acquisition

The proposed $19.7 billion acquisition of Nuance, a specialist in speech-to-text technology, by Microsoft is under review by a U.K. regulatory body.

This review represents an initial stage of investigation. The increased scrutiny of this large transaction could potentially discourage similar large-scale acquisitions by major technology corporations in the future.

The fact that Microsoft is facing a second look from regulators is noteworthy and may have broader implications for the tech industry's M&A landscape.

Startups and Venture Capital Updates

Several key trends are apparent in the current landscape, notably activity within the startup exit market and the cryptocurrency sector. These areas will be addressed initially, followed by a summary of other recent startup news.

Startup Exits:

• Revisiting the IPO Surge: Initial Public Offerings (IPOs) from 2020 and 2021 often experienced substantial gains immediately following their debut. This prompted criticism suggesting that tech companies were intentionally underpriced to benefit investment banking clients. However, a retrospective analysis reveals a more nuanced picture, with the initial gains proving less consistent over time.
• Symbotics to Become Publicly Traded via SPAC: Following increased investment from major U.S. retailer Walmart, Symbotics has opted to go public through a Special Purpose Acquisition Company (SPAC), also known as a blank-check company. The transaction involves a partnership with Softbank Investment Advisers’ SVF Investment Corp. 3.
• LiveWire, the Electric Motorcycle Company, Pursues SPAC Listing: Did you know that Harley-Davidson also manufactures electric motorcycles? LiveWire is leveraging a SPAC to become a publicly listed entity. This arrangement allows Harley-Davidson to retain a significant ownership stake while simultaneously providing capital to the business. We appreciate the development of electric bikes that avoid the characteristic rumble of aging engines.

Focusing on Cryptocurrency Developments:

• Thirdweb Secures $5M to Bridge Crypto and No-Code Development: Thirdweb is developing software that empowers developers to create, launch, and manage web3 projects without requiring traditional coding expertise. TechCrunch highlights that this approach enhances accessibility within the technology sector, including the realm of cryptocurrency.
• Fractal: A Solana-Based Gaming NFT Marketplace: Fractal is establishing a marketplace for trading non-fungible tokens (NFTs) related to gaming, built on the Solana blockchain – a competitor to Ethereum and Bitcoin. This platform caters to the growing trend of play-to-earn games, where players receive NFTs as rewards, which can then be traded on Fractal.
• NBA Top Shot Launches "The Warehouse": Dapper Labs, the creator of the popular NBA Top Shot NFT series, is introducing a new product called The Warehouse. This ambitious NFT storefront aims to serve as a central hub for web3 digital identity, enabling users to create and customize animated avatars with crypto accessories, as detailed by Lucas Matney. The success of this venture remains to be seen.

Additional Startup News:

• Former Twitter India Head Launches Edtech Venture: Manish Maheshwari, the previous head of Twitter India, is transitioning to launch an edtech startup. This move follows a period of complex relations between Twitter and the Indian government.
• SnapLogic Achieves $1B Valuation: While NFTs often dominate headlines, the enterprise software sector continues to thrive. SnapLogic’s recent $165 million funding round has elevated its valuation to $1 billion. This unicorn assists companies in integrating their data sources and workflows as they embrace digital transformation.
• Unique Startup Names Persist: Introducing Whym, a new mobile e-commerce startup founded by former Snap employees. The company aims to improve the mobile purchasing experience, an area that still presents challenges for consumers. Whym has secured $4.3 million in funding.
• Notus Aims to Connect Brands with Influencers: The influencer marketing industry has matured to the point where identifying suitable brand representatives is now a dedicated business. Notus has raised $1.25 million to develop a software service that helps brands locate and engage appropriate influencers.

The Crucial Role of Conversational UX in Chatbot Implementation

While TechCrunch+ typically focuses on advanced topics, exceptions are made for discussions surrounding evolving technologies, such as conversational UX.

Replicating natural human dialogue within software remains a significant challenge. Many current chatbots perform poorly, often leading users to prefer traditional phone-based support systems.

The Potential of Chatbots for Enhanced Customer Interaction

Despite being designed for straightforward customer service functions, chatbots present a valuable opportunity to expand both customer support and sales communication efforts.

According to Raghu Ravinutala, CEO and co-founder of Yellow.ai, a conversational CX platform, this scalability is a key benefit.

(TechCrunch+ is a membership program designed to empower founders and startup teams with the resources they need to succeed. Registration is available here.)

Big Tech Inc.

Instagram is now enabling users to respond to posts with short-form videos, a feature termed “Reels Visual Replies.” This new functionality, as reported by TechCrunch, allows for the creation of video responses directly within the platform.

Essentially, these responses function as personalized video clips, offering a dynamic alternative to traditional text or image replies. The potential for user engagement is significant, pending widespread adoption.

Mozilla's Continued Relevance

Despite the dominance of Google Chrome, Mozilla maintains a substantial user base and is projected to generate approximately $500 million in revenue this year.

This financial performance underscores the continued importance of Mozilla's products and their contribution to maintaining competition within the web browser market.

The sustained usage of Mozilla browsers demonstrates that a significant segment of internet users still prefer alternatives to Chrome.

• Key Takeaway: Mozilla’s financial stability is a positive indicator for browser diversity.

The introduction of Reels Visual Replies on Instagram represents a further evolution of short-form video content within social media.

Meanwhile, Mozilla’s ongoing success highlights the enduring value of choice and competition in the technology landscape.

Continued innovation from companies like Meta and the sustained viability of organizations like Mozilla are crucial for a healthy and dynamic digital ecosystem.

TechCrunch Experts

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