daily crunch: wefox ceo says $650m series c was ‘much more than we wanted to raise initially’

Daily Crunch: June 1, 2021

A daily digest of TechCrunch's most significant and impactful stories is available via subscription. Receive updates directly in your inbox each day at 3 p.m. PDT by subscribing here.

Welcome Back

Greetings, and welcome to Daily Crunch for June 1, 2021. Following an extended weekend in the United States, the TechCrunch blog has been actively updated throughout the day.

Today's Highlights

The technology and startup landscape presented an interesting blend today. This included established entities embracing innovation, such as 7-Eleven's addition of electric vehicle (EV) charging stations.

Conversely, we also observed new ventures revisiting traditional needs, exemplified by a recently launched diaper startup.

Funding Frenzy

However, the primary focus of today’s news revolved around numerous funding rounds. A substantial number of companies secured investment.

Therefore, let's proceed with a review of the latest developments. — Alex

TechCrunch's Top 3 Developments

Recent activity in the European tech sector is gaining significant momentum. Wefox, an insurtech company headquartered in the EU, has secured $650 million in new funding.

This substantial investment is anticipated to positively influence the overall venture capital figures for Europe in the second quarter. It also highlights that the growth of neoinsurance companies isn't limited to the United States.

Further expansion and increased entrepreneurial endeavors are expected within this sector throughout the remainder of 2021.

The Decline of Hadoop

Both Cloudera and Hortonworks were once prominent startups in the tech industry. Following their initial public offerings, both companies encountered difficulties.

In an attempt to overcome these challenges, they merged in a $5.2 billion deal. However, struggles persisted, ultimately leading to their acquisition by two private equity firms for $5.3 billion.

This acquisition represents a slight increase over their valuation prior to the merger, effectively marking the end of Hadoop’s journey as a startup.

Continued IPO Activity

Despite the conclusion of Hadoop’s startup phase, numerous companies are actively pursuing initial public offerings (IPOs).

Sprinklr, a customer experience startup based in New York, is preparing to list on the public market. This decision is supported by moderate revenue increases and potential improvements in profitability.

The company aims to capitalize on the current favorable conditions for IPOs.

Startup Funding and Venture Capital Updates

Recent days have witnessed a significant influx of funding rounds within the startup ecosystem. While a comprehensive listing is impractical for this update, we’ve highlighted several particularly noteworthy investments.

Recent Investment Highlights

• Molecule.one Secures $4.6M for Computational Chemistry: Molecule.one, previously a participant in the TechCrunch Disrupt Battlefield, aims to translate theoretical drug designs into tangible realities. Their focus is on developing processes that enable laboratories to synthesize complex molecules using established techniques and materials.
• project44 Obtains $202M for Supply Chain API Solutions: project44 provides Application Programming Interfaces (APIs) that facilitate seamless connectivity across the diverse landscape of the supply chain. The company’s valuation has rapidly increased to $1.2 billion, representing a doubling of its previous assessment.
• Redacted Attracts $60M for Proactive Cybersecurity Measures: Unlike conventional cybersecurity solutions that primarily focus on defense, Redacted adopts a proactive approach. They aim to directly target malicious actors, recovering lost data and disrupting their operations.
• Truebill Gains $45M for its Personal Finance Application: Initially recognized for its subscription cancellation service, Truebill has evolved into a comprehensive personal finance platform. It now encompasses a wide array of features, including savings tools and credit monitoring.
• Belvo Raises $43M for Fintech APIs in Latin America: Since its participation in the Y Combinator program, Belvo has consistently demonstrated strong potential. The company is developing an API platform similar to Plaid, specifically tailored for the Latin American financial technology market.

This funding activity demonstrates continued investor confidence in innovative startups across various sectors. The growth trajectories of companies like project44, with its 100% year-over-year increase in Annual Recurring Revenue (ARR) to over $50 million, are particularly encouraging.

 Four Effective CX Strategies to Cultivate Customer Loyalty

The pursuit of optimized customer experiences (CX) has been a constant throughout the history of commerce.

Consider a well-known bakery in San Francisco, which strategically positions an exhaust fan at street level. This results in the delightful aroma of orange-cinnamon buns filling the neighborhood each morning, awakening residents. Likewise, experienced hair stylists routinely inquire whether returning clients desire their usual style or are interested in exploring a new look.

In the digital realm, CX can manifest in various forms, ranging from personalized shoe recommendations to artificial intelligence capable of proactively offering upgrades to travelers facing flight delays.

Following Qualtrics’ independent launch and initial public offering, and in the wake of Sprinklr’s recent S-1 filing, Rebecca Liu-Doyle, a principal at Insight Partners, has identified four crucial characteristics exhibited by “organizations that have significantly improved their CX performance.”

(Extra Crunch is our subscription service designed to empower founders and startup teams. Registration is available here.)

Big Tech Inc.

Today’s coverage of Big Tech was relatively quiet, overshadowed by the rapid developments within the startup ecosystem. However, we did examine Twitter’s efforts to integrate additional advertisements into its platform.

These ads will primarily be displayed to users of the Fleets feature, meaning a large portion of the user base likely won’t encounter them.

Despite a generally favorable outlook on Twitter’s recent product improvements, this particular update isn’t one we’d welcome.

Line's Expansion into Banking

News also emerged from Line, the messaging application prominent in several Asian markets, regarding its expansion into financial services.

Essentially, the company has launched a digital banking platform in Indonesia.

This platform will offer a range of services, including deposit accounts, microcredit options, and remittance/payment processing.

A common observation in the tech industry is that messaging apps often function as dating platforms.

However, this trend is evolving.

Now, virtually any application is progressing along a spectrum toward becoming a comprehensive fintech provider.

The speed of this transformation varies, but the direction is clear.

• Twitter is increasing ad placements, primarily within Fleets.
• Line has launched a full-fledged digital banking platform in Indonesia.
• The tech industry is witnessing a convergence of apps and fintech services.

This shift demonstrates the broadening scope of technology companies and their ambition to offer a wider array of services to their users.

Engaging with Our Network

A new Initial Public Offering (IPO) has been announced, prompting discussion about its potential success. We are interested in your predictions regarding the public offering of Sprinklr.

An upcoming excursion to Pittsburgh has been scheduled, and has even garnered the attention of the city’s mayor. Do you know individuals who are establishing businesses in Pittsburgh? Encourage them to register to present their ventures during this event.

Connect Further

Furthermore, we invite you to join the conversation and connect with us on our Discord server.

Explore opportunities for collaboration and stay updated on the latest news and events by visiting our Discord community.

• Sprinklr IPO: Share your insights on the anticipated performance of Sprinklr’s public offering.
• Pittsburgh Field Trip: Extend an invitation to contacts in the Steel City to participate in pitch presentations.
• Discord Community: Engage with us and fellow members on our Discord platform.

Your participation and feedback are highly valued as we continue to foster a vibrant and collaborative environment.

An Invitation to TC Eventful

An exclusive invitation is extended to you for tomorrow’s Extra Crunch Live event. Coda’s CEO, Shishir Mehrotra, and Madrona investor, S. Somasegar, will be discussing Coda’s success.

The discussion will focus on how Coda distinguished itself within the competitive collaborative software market and secured $140 million in funding.

Event Details

Attendees will also have a unique opportunity to participate in a pitch-off, showcasing their own presentation abilities.

Secure your place for this event, scheduled to begin at 11:30 a.m. PDT/2:30 p.m. EDT, by completing your registration here!