extra crunch roundup: influencer marketing 101, spotting future unicorns, apple airtags teardown

Leveraging Influencers for Startup Growth

Even companies just beginning to establish themselves can forge connections with prominent figures on platforms like TikTok, Instagram, and YouTube. Successful influencer collaborations depend on a thorough understanding of the influencer marketing landscape.

While creators possess numerous brand affiliations and income streams, marketers who effectively engage with influencers can achieve positive results regardless of budgetary constraints.

For marketing leaders at early-stage startups, this article details strategies for identifying influencers whose values align with your brand. It also outlines the fundamentals of establishing a mutually beneficial revenue-sharing model.

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Upcoming Events and Recent Coverage

The forthcoming TC Early Stage event will focus on marketing and fundraising. Consequently, anticipate an increased volume of articles pertaining to growth marketing in the coming weeks.

This week also featured a guide on best practices for making your initial marketing recruitment. Furthermore, Managing Editor Eric Eldon interviewed growth strategist Susan Su regarding the construction of distributed marketing teams.

Our team is taking a day to observe the Juneteenth holiday in the United States. We wish you a secure and restful weekend.

Walter Thompson
Senior Editor, TechCrunch
@yourprotagonist

Startups Have a Unique Advantage in Talent Acquisition as the Economy Recovers

The recent pandemic prompted a significant reassessment of work practices – and a questioning of whether the traditional employment model remains desirable for many.

Consequently, a substantial number of professionals are now seeking alternative opportunities.

Art Zeile, CEO of DHI Group, highlights that this situation presents a favorable landscape for startups to attract skilled individuals.

“Not all startups aim to be disruptive, but they frequently leverage advanced technologies and methodologies to deliver genuinely innovative solutions to their clientele,” Zeile explains. “A core objective for many is to redefine established norms within their respective sectors.

Therefore, they inherently possess a compelling mission or purpose that can be particularly attractive to those in the technology field.”

Key Considerations for Founders

Below are four crucial points for founders of rapidly expanding companies as they construct their teams in the post-pandemic era.

• Focus on articulating a clear and inspiring vision.
• Emphasize the opportunities for growth and impact.
• Prioritize a flexible and supportive work environment.
• Showcase the innovative nature of the company’s work.

Talent is actively seeking companies that align with their values and offer opportunities for professional development.

Startups, with their agility and focus on innovation, are well-positioned to meet these demands.

Refraction AI’s Matthew Johnson-Roberson on Navigating the Robotic Delivery Landscape

Refraction AI positions itself as offering an optimal solution in the realm of robotic delivery, according to Rebecca Bellan. The company, headquartered in Ann Arbor, was established by two professors from the University of Michigan.

These founders believe that fully autonomous vehicle (AV) delivery is further off than many projections suggest.

Conversely, they also determined that sidewalk delivery presents significant challenges and limited returns.

Their approach centers on identifying a balanced strategy – specifically, utilizing bike paths for robotic delivery.

A Focus on Practicality and Public Benefit

Rebecca Bellan recently interviewed the CEO of Refraction AI to explore the driving force behind creating a product with broad applicability.

The core motivation is to develop “something that is useful to the general public,” as stated by the CEO.

This highlights a commitment to delivering tangible benefits through their robotic delivery system.

• The company aims to bridge the gap between ambitious AV promises and the limitations of sidewalk-based solutions.
• Bike paths are seen as an ideal environment for efficient and practical robotic delivery.
• Refraction AI prioritizes creating a service that genuinely serves the needs of a wide audience.

The founders’ academic background informs their pragmatic approach to solving real-world delivery challenges.

Identifying Founders with Unicorn Potential in Early Stages

The question of what investors prioritize is a common one.

Entrepreneurs frequently expend considerable effort attempting to portray characteristics they believe are desirable to investors. However, successfully feigning qualities like patience, dedication, or diligence often proves beyond the capabilities of most.

Johan Brenner, a general partner at Creandum, provided early funding for companies such as Klarna and Spotify, alongside numerous other European startups. Through two decades of experience, he has pinpointed five core attributes consistently found in individuals who build billion-dollar businesses.

Brenner notes that a genuinely exceptional founder doesn’t necessarily possess all these skills from the outset.

However, they should exhibit an ability to envision substantial growth while simultaneously focusing on practical implementation and demonstrating an understanding of how to achieve scalability.

Key Traits of Unicorn Founders

The ability to think expansively, even while concentrating on initial steps, is crucial.

Demonstrating a clear grasp of the processes required for scaling a company is also essential.

• Big Vision, Small Execution: Founders must balance ambitious goals with pragmatic action.
• Scalability Understanding: A comprehension of how to grow a business efficiently is vital.

These traits, according to Brenner, are more indicative of future success than any performance.

Investors are often more attuned to these underlying qualities than to superficial displays of effort.

The Importance of Authentic Leadership

Trying to mimic desired traits can be counterproductive.

Authenticity and a genuine understanding of the challenges ahead are far more valuable to investors.

Focusing on building a solid foundation and demonstrating a clear path to scalability will resonate more effectively than attempting to project an image of perfection.

Ben Schippers and Evette Ellis Capitalize on Growing EV Sales

The increasing adoption of electric vehicles is creating a surge in demand for supporting services and innovative startups.

These new businesses are addressing the evolving requirements of both EV drivers and charging station operators.

At TC Sessions: Mobility 2021, Evette Ellis and Ben Schippers discussed how their respective companies have successfully leveraged the opportunities arising from the electric transportation shift.

The Rise of Electric Vehicle Demand

EV sales are experiencing substantial growth, prompting a need for specialized solutions.

This growth is not only impacting vehicle manufacturers but also fostering a new ecosystem of related businesses.

Insights from TC Sessions: Mobility 2021

Ellis and Schippers shared their experiences on the main stage, detailing their strategies for success.

Their presentations focused on identifying and capitalizing on the unique challenges and possibilities within the electric transportation sector.

The discussion highlighted the importance of adaptability and innovation in this rapidly evolving market.

Key Takeaways

• The demand for EV infrastructure and services is rapidly increasing.
• Startups are playing a crucial role in meeting these new demands.
• Events like TC Sessions: Mobility 2021 provide valuable platforms for sharing insights and fostering collaboration.

Both founders emphasized the potential for continued growth and innovation within the EV industry.

Scale AI’s Alex Wang Discusses Software Errors and the Path to Reliable AV Technology

Alex Wang, co-founder and CEO of Scale AI, participated in TechCrunch Sessions: Mobility 2021. He addressed the company’s contributions to the autonomous driving sector and the evolution it has undergone since its inception five years ago.

Scale AI provides crucial support to both established and emerging autonomous vehicle (AV) developers. This support centers around establishing dependable “ground truth” through data annotation and effective data management.

The criteria for achieving this “ground truth” have evolved alongside the maturation of the autonomous vehicle industry. Wang detailed how these standards have shifted over time.

The Importance of Data Quality

Algorithms designed for autonomous driving may appear comparable in their initial creation. However, their actual performance in real-world scenarios can differ significantly. This variance is largely determined by the quality of the input data they utilize.

Scale AI’s core value proposition to the industry lies in this critical area. Wang elaborated on the reasons why high-quality data is paramount for successful autonomous vehicle operation.

Data annotation and management are essential for ensuring that AV systems can accurately perceive and interpret their surroundings. This directly impacts safety and reliability.

Investment in Edtech SaaS Guidance Platforms is Surging

Initial predictions following the pandemic suggested a decline in higher education enrollment. The assumption was that with increased vaccination rates, students would opt for alternative experiences like gap years.

However, this forecast appears to be inaccurate. A new wave of edtech SaaS companies is attracting significant investor attention.

New SaaS Startups Function as Digital Counselors

These startups are designed to assist students with a wide range of needs. This includes finding study-abroad programs and selecting the most suitable colleges.

Natasha Mascarenhas highlights the emergence of these edtech SaaS solutions. They essentially act as virtual guidance counselors for students.

Investor Focus is Shifting

As demand for personalized, virtual learning experiences grows, investors are increasingly interested in companies that streamline the educational process.

Startups that simplify interactions with educational institutions are poised for growth. They empower students to maximize the benefits of their education.

The Value Proposition for Students

These platforms help students navigate complex administrative processes. This allows them to concentrate on achieving their academic goals.

Consequently, a growing emphasis is being placed on investments in solutions that enhance the overall student experience.

Expanding a Startup from Iran into the US: Considerations for Growth

Dear Talented in Tehran,

Congratulations on the success of your software startup in Iran. The ambition to extend your company’s reach to California is a significant step.

Navigating US Expansion Post-Muslim Ban

The rescission of the travel ban by President Biden has indeed opened pathways for Iranian founders and entrepreneurs to pursue opportunities within the United States. Previously, obtaining visas was considerably more challenging.

However, simply having the ban lifted doesn't guarantee a straightforward process. Visa applications are still subject to thorough vetting and must meet specific requirements.

Impact of the Ongoing Pandemic

While the most severe restrictions related to the pandemic have eased, it continues to introduce complexities.

Processing times for visas at US embassies and consulates can still be significantly delayed due to reduced staffing and backlogs. This can impact your timeline for establishing a US presence.

Essential Steps and Suggestions

Here’s a breakdown of key considerations and recommendations for your expansion:

• Visa Options: Explore appropriate visa categories. The E-2 Treaty Investor visa is often a viable option for entrepreneurs from treaty countries investing a substantial amount of capital in a US business.
• Legal Counsel: Engage an experienced US immigration attorney. They can assess your specific situation, advise on the best visa strategy, and guide you through the application process.
• Business Plan: Develop a comprehensive business plan tailored for the US market. This plan should detail your company’s operations, financial projections, and job creation potential.
• Funding: Secure sufficient funding to support your US expansion. The E-2 visa requires a substantial investment, and demonstrating financial stability is crucial.
• US Entity Formation: Establish a legal entity in the US, such as an LLC or C-corporation.
• Banking and Finance: Open a US bank account and establish relationships with financial institutions.

Important Note: Due to the evolving geopolitical landscape, it’s vital to stay informed about any changes in US-Iran relations that could potentially affect visa processing or business operations.

Successfully expanding your startup requires careful planning, expert guidance, and a proactive approach. Best of luck with your venture!

Ensuring Equal Pay Through Real-Time Compensation Data

According to Chris Jackson, VP of Client Development at CompTrak, simply discussing diversity, equity, and inclusion (DEI) and acknowledging the importance of equality doesn't automatically translate into organizational-wide achievement.

He proposes a methodology grounded in data analysis. This approach actively involves stakeholders across various departments, including directors, HR personnel, and talent acquisition specialists.

The goal is to move beyond mere discussion and toward genuine equity within the organization.

A Data-Driven Approach to Equity

Jackson emphasizes that achieving equity requires a proactive, data-focused strategy. This means leveraging real-time compensation data to identify and address pay disparities.

By systematically analyzing compensation information, companies can pinpoint areas where inequities exist. This allows for targeted interventions and adjustments.

• The process necessitates collaboration between leadership and HR teams.
• Talent acquisition plays a crucial role in establishing equitable pay scales from the outset.
• Regular monitoring of compensation data is essential for sustained equity.

Ultimately, a commitment to data transparency and accountability is vital. This ensures that pay practices align with the organization’s stated DEI goals.

Moving from aspirational statements to concrete action is the key to fostering a truly equitable workplace. This requires a willingness to examine existing systems and implement necessary changes.

Insights from Investors Clara Brenner, Quin Garcia, and Rachel Holt on SPACs, Micromobility, and the Impact of COVID-19 on Venture Capital

Investors possess a uniquely informed perspective on emerging trends within the transportation sector.

Their focus centers on the advancements being made by startups and established technology companies in areas like autonomous vehicles, electrification, and micromobility.

These investors also closely monitor developments in robotics and related fields.

During TC Sessions: Mobility 2021, a discussion was held with three venture capitalists to explore a range of topics.

The conversation encompassed the effects of the pandemic and the identification of underappreciated possibilities within the transportation landscape.

The Role of Venture Capital in Transportation Innovation

Venture capitalists are instrumental in funding the development of groundbreaking transportation technologies.

They actively seek out companies poised to disrupt traditional models and create new solutions.

This funding is crucial for accelerating innovation and bringing new technologies to market.

Discussion Topics at TC Sessions: Mobility 2021

The panel discussion covered several key areas impacting the future of transportation.

These included the rise of SPACs (Special Purpose Acquisition Companies) and their influence on the industry.

Micromobility solutions, such as e-scooters and e-bikes, were also a central theme.

Furthermore, the investors shared their perspectives on how the COVID-19 pandemic has reshaped the venture capital landscape.

Key Takeaways from the Investor Panel

The investors highlighted the importance of adaptability and resilience in the face of unforeseen challenges.

They emphasized the need to identify opportunities that address evolving consumer needs and preferences.

The discussion also underscored the potential for long-term growth in the transportation sector, despite recent disruptions.

Automotive Leaders – Ford, Toyota, and Hyundai – Detail Robotics Investment Strategies

The automotive industry’s engagement with robotics isn't a recent development. Automation and robotic systems have been integral to manufacturing processes for a considerable period, and are fundamentally important to the advancement of autonomous vehicles (AVs).

However, a notable shift is occurring, with numerous automotive companies now expanding their involvement across a broader range of robotics applications.

During TC Sessions: Mobility 2021, a panel discussion featured insights from leading experts representing Ford, Toyota, and Hyundai, outlining their respective companies’ distinct strategies concerning robotics.

Expanding Robotics Horizons

Automakers are increasingly recognizing the potential of robotics beyond traditional manufacturing. This expansion encompasses a diverse array of applications.

The focus is shifting towards comprehensive integration of robotics throughout the entire value chain, from design and prototyping to logistics and customer service.

Ford’s Approach to Robotics

Ford is concentrating on developing robotic solutions to enhance manufacturing efficiency and improve worker safety. Automation is key to their strategy.

Their initiatives include collaborative robots (cobots) working alongside human employees, and advanced robotic systems for complex assembly tasks.

Toyota’s Robotics Vision

Toyota’s robotics strategy centers around creating robots that can assist people in various aspects of daily life. This extends beyond the automotive sector.

They are investing in robotics research focused on mobility, healthcare, and home assistance, aiming to improve quality of life through robotic innovation.

Hyundai’s Robotics Investments

Hyundai is pursuing a more aggressive approach, aiming to become a leading robotics provider. They are actively acquiring robotics companies.

Their strategy involves developing robots for a wide range of industries, including logistics, construction, and automation, with a focus on both hardware and software solutions.

Common Threads and Future Outlook

Despite their differing approaches, Ford, Toyota, and Hyundai share a common belief in the transformative power of robotics.

All three companies recognize that robotics will be crucial for maintaining competitiveness in the rapidly evolving automotive landscape and beyond. The future of automotive is inextricably linked to advancements in robotics technology.

Investment in this field is expected to continue growing as automakers strive to optimize operations, enhance product development, and create new revenue streams.

An Examination of Apple AirTag User Experience: Balancing Privacy and Functionality

Apple’s AirTags, designed for locating items, have been available for over a month. Initial reactions were positive, however, we previously noted in April that the true test would come with real-world usage and potential loss.

Our UX analyst, Peter Ramsey, has spent the last month deliberately misplacing AirTags. This was done to rigorously evaluate the user experience under challenging conditions.

This exclusive report for Extra Crunch subscribers offers insights into Apple’s design choices. It also provides actionable strategies for improving the UX of your own products.

The Core Challenge: Privacy Considerations

A central aspect of the AirTag design is a strong emphasis on user privacy. This commitment, while commendable, introduces complexities to the user experience. The system is intentionally designed to prevent unwanted tracking.

Apple implemented features to alert individuals if an unknown AirTag is traveling with them. This is a crucial safeguard against misuse, but it also creates potential friction for legitimate users.

Testing the Limits of the AirTag System

Peter Ramsey’s testing involved a variety of scenarios. These included leaving AirTags in public places, attaching them to moving vehicles, and simulating lost items. The goal was to identify weaknesses in the system’s recovery mechanisms.

The tests revealed that while the AirTag network is generally effective, the reliance on other Apple device users for location updates can be a limitation. Coverage is dependent on the density of Apple users in a given area.

Key UX Findings and Potential Improvements

The analysis highlighted several areas where Apple could refine the AirTag experience. These include:

• Alerting System Clarity: Improving the clarity and immediacy of alerts when an AirTag is detected moving with someone who doesn't own it.
• Lost Mode Functionality: Enhancing the functionality of “Lost Mode” to provide more detailed information to finders.
• Precision Finding: Optimizing the “Precision Finding” feature for use in complex environments.

Addressing these points could significantly improve the overall usability of AirTags without compromising their core privacy principles.

Ultimately, the AirTag represents a fascinating case study in UX design. It demonstrates the inherent trade-offs between robust privacy features and a seamless user experience.

Initiating a Thriving RPA Implementation

Robotic process automation (RPA) has moved beyond its initial stages of adoption.

Securing organizational alignment is crucial, as Kevin Buckley points out, and a collaborative approach is now essential.

Significant gains in efficiency and substantial cost reductions, achieved through the automation of even simple workflows, are driving widespread automation deployment throughout organizations.

In essence, enterprise-level business automation should be viewed as a comprehensive business solution, with technical expertise serving a supporting role.

The Potential for Equitable, Accessible, and Profitable Mobility Startups

Access to transportation should be considered a fundamental right, yet frequently it remains a privilege afforded to few. The question arises: can emerging companies leverage technology and innovative systems to rectify this imbalance?

A Discussion on Equity in Mobility

During TC Sessions: Mobility 2021, a panel discussion was held featuring Frank Reig, CEO and co-founder of Revel, Tiffany Chu, CEO and co-founder of Remix, and Tamika L. Butler, a community organizer, transportation consultant, and lawyer.

The conversation centered on how mobility companies ought to prioritize equity. It was emphasized that integrating equitable practices from the outset can lead to cost savings over time.

Partnerships for Sustainable Mobility

The panel also explored the importance of collaboration between mobility companies and cities.

• This partnership is crucial for expanding access to both sustainable and accessible transportation options.
• Effective collaboration can foster mobility solutions that benefit all members of the community.

Equity, accessibility, and profitability are not mutually exclusive goals for mobility startups. A proactive approach to these factors can create a more just and efficient transportation ecosystem.

Further details regarding this discussion can be found at: https://techcrunch.com/2021/06/17/mobility-startups-can-be-equitable-accessible-and-profitable/

Coda’s Pitch Document Insights from Shishir Mehrotra and S. Somasegar

During a recent session of Extra Crunch Live, Coda’s CEO, Shishir Mehrotra, and Madrona partner, S. Somasegar, participated in a detailed review of Coda’s pitch document. Notably, they examined a document rather than a traditional pitch deck.

The discussion extended to the ECL Pitch-off segment. This allowed founders present to present their products directly to Mehrotra and Somasegar for feedback.

Extra Crunch Live Details

Extra Crunch Live is a weekly event held every Wednesday at 3 p.m. EDT/12 p.m. PDT. Participation during the live broadcast allows for networking opportunities with fellow attendees.

Access to recordings of previous Extra Crunch Live sessions is a benefit reserved specifically for Extra Crunch members. Membership can be obtained here.

• The event features insights from industry leaders.
• Founders gain valuable pitching experience.
• Networking is a key component of the live event.

The session provided a unique look into how Coda presents its vision and strategy to potential investors. It also offered practical advice for founders refining their own pitches.