Zoom to Pay $85M in Zoombombing & Privacy Lawsuit - Daily Crunch

Daily Crunch: August 2, 2021

A daily summary of TechCrunch’s most significant and impactful stories can be delivered directly to your inbox each day at 3 p.m. PDT. You can subscribe here to receive this update.

Welcome to Daily Crunch

Greetings and a warm welcome to Daily Crunch for Monday, August 2nd, 2021. Today has been particularly noteworthy. Square initiated the week’s news with a substantial acquisition, while Google unveiled new hardware innovations.

Notable Developments

Furthermore, a number of new venture capital funds have emerged. The pace of activity is brisk. Before proceeding, a special summer edition of Extra Crunch Live is scheduled for this week, featuring a pitch competition.

This event will be held on Wednesday, so mark your calendars. Don’t miss out! — Alex

TechCrunch's Leading Three Stories

Here's a summary of the top three tech news items reported by TechCrunch.

Google's Investment in Custom Silicon

Google, a subsidiary of Alphabet, is now developing its own custom silicon. This move mirrors Apple’s strategy with its A and M series chips.

The goal is for Google’s Tensor SoC (system on a chip) to provide a competitive advantage in the smartphone market, as noted by Brian Heater.

Further details regarding Google’s new hardware initiatives can be found here.

Square's Acquisition of Afterpay

Square, a major U.S. fintech company, has agreed to acquire Afterpay, an Australian buy now, pay later service, in a stock transaction valued at $29 billion.

TechCrunch analyzed the financial aspects of this deal, highlighting that Afterpay will contribute merchants, a global user base, and a novel fintech offering to Square’s portfolio.

While a substantial investment, the acquisition is considered strategically sound.

Growth in Cloud Infrastructure Spending

The increasing investor interest in the tech sector is partly fueled by consistently accelerating demand.

Recent data covered by TechCrunch reveals a 39% year-over-year increase in cloud infrastructure spending during Q2 2021.

This market, which is fundamental to numerous services utilized by both consumers and businesses, reached a total expenditure of $42 billion in the second quarter.

Key Takeaway: The cloud infrastructure market is experiencing significant and sustained growth.

Startups/VC

Reese Witherspoon’s media company was acquired for $900M. This transaction, while outside the typical startup sphere, merits attention given the substantial valuation. Hello Sunshine, the company in question, produced content for prominent streaming platforms.

Interestingly, the acquiring entity remains unnamed. TechCrunch reports it’s a new media firm led by former Disney executives, adding an element of intrigue.

An investor in Afterpay expresses optimism regarding its acquisition by Square. Dana Stalder of Matrix Partners, identifying as the sole institutional venture investor in Afterpay, believes the combined entity will exceed the sum of its parts.

B2B Software & Payments

Nektar.ai aims to centralize and analyze B2B sales data. The complexities of selling software necessitate the use of numerous tools by Sales Development Representatives and Account Executives.

Nektar intends to function as a unified hub for this data, and has secured $6 million in funding to expand its operations. The sales operations market is substantial, and further innovation in this area is anticipated.

Startups focused on simplifying B2B payments are attracting investment. Yadoo recently raised $20 million to streamline business-to-business transactions.

While peer-to-peer payments are straightforward, corporate transactions present unique challenges. Yadoo is addressing this issue, operating from its headquarters in Mexico City.

Venture Capital Updates

Element Ventures has secured $130 million in funding. The increasing focus on B2B fintech is reflected in this significant capital raise.

The firm will concentrate its investments on 15 companies annually, targeting opportunities in Europe, the U.S., and Asia.

A new fund, Newtopia, is dedicated to supporting Latin American startups. The fund has raised $50 million to invest in pre-seed companies, offering checks ranging from $100,000 to $1 million.

This dedicated fund will focus on startups preparing for their Series A funding rounds. The growth of the Latin American market is driving the need for specialized early-stage investment vehicles.

For those interested in educational technology, a relevant podcast episode is now available.

The Demand Curve: Essential Questions for Effective Paid Search Advertising

Nearly all nascent startups will, at some stage, employ paid search advertising as a means of reaching potential customers and establishing a competitive presence.

However, a significant number of these initial forays into paid search fail to yield the desired results. Converting individuals who are simply browsing into actual purchasers presents a considerable challenge, and initial campaigns rarely achieve optimal performance.

Growth marketing specialist Stewart Hillhouse, in an extensive guest article, delineated “14 questions your paid search should answer to ensure you’re only paying for the highest-intent shoppers.”

The primary question he poses is: “What benefit will I receive?”

(Extra Crunch is our subscription service, designed to empower founders and startup teams with a competitive edge. Registration is available here.)

Big Tech Inc.

Recent developments within the technology sector highlight both financial repercussions and strategic investments. Several key events have unfolded, impacting major players like Zoom, Amazon, and Salesforce.

Zoom's Financial Settlement

Zoom has agreed to a settlement amounting to $85 million. This stems from a lawsuit alleging violations of user privacy and the facilitation of “Zoombombing” incidents.

The lawsuit, as reported by TechCrunch, centered on claims that user data was shared with third parties without adequate consent. The settlement represents 0.07% of Zoom’s current $112 billion market capitalization.

Amazon's Palm Print Incentive

Amazon is offering a $10 credit to customers who provide their palm print data. This initiative aims to streamline the checkout process in Amazon’s brick-and-mortar stores.

The incentive, while financially modest, raises privacy considerations for potential participants. It remains to be seen how widely this program will be adopted.

Salesforce's Acquisition of Servicetrace

Salesforce is expanding its capabilities through an investment in Mulesoft, a company it previously acquired. This involves the integration of German Robotic Process Automation (RPA) firm Servicetrace.

Servicetrace will be directly integrated with Mulesoft, rather than Salesforce itself. This strategic move positions Salesforce to capitalize on the growing RPA market.

Industry Expert Insight

Ron Miller, a reporter at TechCrunch, offered perspective on the Salesforce-Servicetrace deal. He characterized it as a smaller, strategic acquisition, similar in nature to the larger Slack deal.

According to Miller, the acquisition provides Salesforce with an entry point into the RPA market without substantial financial outlay. He also expressed optimism regarding the planned integration between Mulesoft and Servicetrace.

Miller believes this acquisition signals a trend of more focused, smaller deals for the company in the coming year.

TechCrunch Seeks Growth Marketing Professionals

Did you have a chance to review last week’s articles concerning growth marketing strategies? The previous coverage can be found here if you missed it.

TechCrunch is currently soliciting recommendations for accomplished growth marketers.

Areas of Expertise

We are looking for professionals with demonstrated skills in areas such as SEO, social media marketing, and content writing.

• Expertise in search engine optimization is highly valued.
• Strong social media marketing capabilities are essential.
• Proficiency in crafting compelling content is a key requirement.

Client Feedback Requested

Growth marketers are encouraged to share this survey with their clients.

We aim to gather insights into the positive experiences clients have had while collaborating with these marketing experts.

Client testimonials will help us understand the value these professionals bring to their projects.

Your feedback is greatly appreciated and will contribute to recognizing top talent in the field of growth marketing.

The survey seeks to highlight the reasons why clients have enjoyed their partnerships with these marketers.