Having been with TechCrunch for just over a year, the past week presented one of the most challenging periods of my time here.

Similar to countless others, my attention has been divided recently. As I compose this, I find myself glancing between my keyboard and a television intermittently displaying election updates from key states. Even with this significant distraction, I am deeply impressed by the dedication of the TechCrunch team; it requires considerable concentration and effort to put aside such a prominent global event and remain focused on our daily tasks.

The beginning of the week already seems quite far removed, so here’s a summary of the leading Extra Crunch articles published over the last five days. Access to these pieces is exclusive to members, however, you can utilize the discount code ECFriday to receive a 20% reduction on either a one or two-year subscription. Further information can be found here.

B2B marketplaces will be the next billion-dollar e-commerce startups

Online marketplaces designed for business-to-business commerce are experiencing rapid growth. Data indicates that these platforms facilitated approximately $680 billion in transactions in 2018, with projections estimating this value will climb to $3.6 trillion by 2024.

Startups focused on advancements in areas such as payment processing, funding solutions, insurance offerings, and regulatory adherence are benefiting from the effects of the COVID-19 pandemic.

However, Merritt Hummer, who is a partner at Bain Capital Ventures, emphasizes that “B2B marketplaces must evolve beyond basic transaction facilitation to sustain success.”

She suggests that the companies that quickly introduce groundbreaking supplementary services will be the leading contenders in the coming years.

Reports indicate a strong third quarter for software businesses

Alex Wilhelm conducted interviews with three leaders from cloud-based and Software-as-a-Service (SaaS) organizations for today’s installment of The Exchange, seeking insights into their performance during the third quarter of 2020:

• Raj Dani, Chief Financial Officer at Ping
• Shlomi Ben Haim, Chief Executive Officer of JFrog
• Brent Bellm, Chief Executive Officer of BigCommerce

A social media observer pointed out that Alex’s reporting is distinguished by his practice of speaking with a diverse group of technology leaders, not solely those with the highest public profiles, which contributes to the depth and value of his coverage.

Could updated SEC regulations for equity crowdfunding lead to increased founder participation?

Recently published revisions to Regulation Crowdfunding from the SEC permit businesses to solicit up to $5 million annually from non-accredited investors, representing a significant rise from the prior cap of $1.07 million.

According to a report by Lucas Matney, who spoke with Wefunder’s Chief Executive Officer Nicholas Tommarello, the process of securing funding has become more streamlined for founders exploring this avenue, as well as for the platforms designed to facilitate it.

Seed-stage startup funding experienced a 32% decrease in the most recent quarter when contrasted with figures from 2019, suggesting a potential shift in favor of founders who previously hesitated to accept capital from a large number of smaller investments, as Lucas Matney observed.

3 strategies for SaaS entrepreneurs aiming for $1 million in Annual Recurring Revenue

For software businesses, achieving substantial growth is critical, making expansion a primary focus.

In an article published on Extra Crunch, David Cancel, the CEO of Drift, points out that numerous SaaS and cloud-based companies spend valuable time experimenting with various approaches before discovering what truly works.

He states, “From my experience, there is a definitive, replicable method for constructing a thriving SaaS enterprise,” adding, “this process can consistently lead you to achieving product-market alignment and subsequently accelerating your expansion.”

Establishing a data-focused strategy to ensure just, impartial and clear employee compensation

Organizations aiming to resolve persistent disparities within their work environments cannot simply depend on assuming they are acting appropriately. Absent a strategy grounded in data analysis, personal opinions and unconscious prejudices frequently undermine positive efforts.

Numerous emerging businesses postpone recruiting dedicated, full-time Human Resources professionals until they achieve substantial growth; however, this detailed article outlines several essential considerations for developing – and sustaining – an equitable compensation structure.

4 questions as Airbnb’s IPO looms

Reports emerged this week indicating Airbnb intends to secure roughly $3 billion through an initial public offering, potentially achieving a company valuation around $30 billion.

Alex Wilhelm, our specialist in analyzing privately held startup companies, suggests that prospective investors should consider the following key questions:

• Can Airbnb demonstrate a clear and achievable route to becoming profitable in the foreseeable future?
• What is the true quality of Airbnb’s earnings following the impact of the pandemic?
• Are there any unfavorable conditions or details within its past funding rounds that could concern investors once the company is publicly traded?
• Will Airbnb be capable of consistently increasing its revenue compared to previous years?

Starling Bank founder Anne Boden states new book is not an autobiography

Anne Boden, the creator of Starling Bank, explained to Steve O’Hear of TechCrunch that individuals typically author memoirs later in their professional lives. She emphasized that she feels she is still early in her career.

Boden’s latest publication, titled “Banking On It,” details the circumstances surrounding her decision to establish a new type of bank and the subsequent separation from associates who later founded the rival company, Monzo.

“The book represents a record of our current position and progress,” Boden commented. “It has been developed over a period of years, and my intention is for it to motivate a new wave of business founders.”

The COVID-19 Pandemic Led to a Disproportionate Decrease in Venture Capital Funding for Women Entrepreneurs

Natasha Mascarenhas and Alex Wilhelm teamed up for Monday’s installment of The Exchange to analyze the trend of investors showing decreased willingness to provide funding to female founders following the onset of the COVID-19 pandemic.

By analyzing information gathered from various data points, Alex and Natasha determined that companies with female leadership and those with both male and female founders experienced a 48% reduction in venture capital funding during the third quarter of 2020 compared to the second quarter, despite a general recovery in overall funding levels.

As they explained, “Despite a notable resurgence from the anxieties of late Q1 and a moderate Q2, Q3 saw a significant upswing – but not for everyone.”

Growing mergers and acquisitions in edtech are leading to consolidation within a diverse industry

Natasha Mascarenhas has been TechCrunch’s primary reporter covering educational technology since joining the team in early 2020, a period shortly before the pandemic resulted in extensive school shutdowns.

Throughout her coverage, she has documented numerous investment cycles and spoken with both company leaders and financial backers involved in this field, but she has recently observed a developing pattern: “The level of mergers and acquisitions is noticeably higher than normal.”

4 takeaways from fintech VC in Q3 2020

Despite the distractions of Election Day, Alex Wilhelm dedicated time to analyze fintech investment trends throughout the previous quarter and presented his findings in a detailed report.

According to his analysis of Q3 2020, a significant portion of funding – specifically, 60% of all capital secured by financial technology companies – was concentrated in only 25 investment rounds, each exceeding $100 million in value.

The question arises whether these substantial investment rounds are supporting the development of the next generation of unicorn companies. While it remains too soon to definitively answer, the increased uncertainty brought about by the pandemic is demonstrably leading customers toward businesses such as Robinhood, Chime, Lemonade, and Root.

In a comprehensive 1,316-word article, Alex thoroughly details the current landscape of investment within the insurtech, banking, wealth management, and payments sectors, concluding with a desire to witness more initial public offerings.

New GV partner Terri Burns focuses her investment strategy on Generation Z

Terri Burns transitioned from a product management position at Twitter five years ago to become the first African American woman – and the youngest individual – to achieve a promotion to partner at Google Ventures.

Burns recently participated in an interview with Natasha Mascarenhas, during which she discussed her objectives for the position and detailed her core investment principles.

“I’m eager to understand the fundamentals of creating a lasting and successful enterprise, and venture capital provides an excellent avenue for gaining that knowledge,” Burns explained.

GV General Partner MG Siegler Discusses Portfolio Oversight and Capital Acquisition Six Months During the COVID-19 Pandemic

Is there a genuine shift occurring with entrepreneurs and investors relocating away from Silicon Valley in pursuit of new opportunities? With investor engagement now largely confined to digital channels, are they increasing their direct involvement with the companies they’ve invested in?

During an Extra Crunch Live discussion led by Darrell Etherington, GV General Partner MG Siegler shared his perspectives on how the pandemic has influenced – and hasn’t influenced – his professional practices.

“I believe operations are currently functioning quite efficiently, or as effectively as possible given the circumstances,” he stated.

“However, unforeseen factors will always introduce uncertainty – as we are just days away from the U.S. election today.”

We appreciate you taking the time to read Extra Crunch, and we wish you a pleasant weekend.