TechCrunch+ Roundup: Enterprise Predictions, Justworks IPO, Startup Theses

Looking Ahead: 2022 Predictions for the Tech Landscape

Greetings and a happy new year to our readers!

In keeping with tradition, several articles published on TechCrunch+ in the days ahead will present forecasts for the year 2022.

Future discussions will cover areas such as financial technology, cryptocurrencies and blockchain technology, and strategies for growth marketing.

However, TechCrunch’s Ron Miller recently published his predictions specifically concerning enterprise-level businesses this year.

The Difficulty of Forecasting in the Enterprise Sector

As Miller pointed out, predicting developments within the enterprise technology space is inherently challenging.

For example, few anticipated Salesforce’s acquisition of Slack for nearly $28 billion in 2021, nor did many foresee Jeff Bezos relinquishing his leadership role at Amazon to Andy Jassy.

Access to comprehensive TechCrunch+ articles is a benefit reserved for members.

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Ron remarked that these events were largely unexpected, and he suspects this was the case for many others.

The rapid pace of change within the technology sector often makes it difficult to maintain an accurate perspective.

Key Areas of Focus for 2022

Acknowledging “the usual caveats,” Miller’s predictions address persistent supply chain disruptions, the growing influence of increased regulatory scrutiny in both Europe and the United States, and the dynamics of a mergers and acquisitions (M&A) market characterized by substantial deal values.

His most provocative and insightful prediction?

Thank you for your continued readership.

Walter Thompson
Senior Editor, TechCrunch+
@yourprotagonist

Justworks Aims for Multi-Billion Dollar Valuation with Forthcoming IPO

Justworks, a human resources software provider concentrating on small and medium-sized businesses (SMBs), has recently published an amended S-1A filing.

This updated filing was analyzed by Alex Wilhelm in today’s edition of The Exchange, providing detailed insights into the company’s IPO prospects.

According to Alex’s assessment, based on current share projections, Justworks’ valuation could exceed $2 billion at the upper limit of its projected range.

Key Details from the S-1A Filing

The S-1A document provides crucial information for potential investors.

It outlines the company’s financial performance, growth strategy, and risk factors associated with investing in Justworks.

The Exchange Analysis

Wilhelm’s analysis in The Exchange offers a comprehensive overview of the IPO.

He focuses on the potential valuation and the factors influencing investor sentiment towards Justworks.

Implications for the HR Software Market

Justworks’ IPO is a significant event within the SMB HR software landscape.

It reflects the continued demand for digital HR solutions among smaller businesses.

• The IPO could set a benchmark for other HR tech companies.
• Increased competition is anticipated as a result of the public offering.
• Further innovation in SMB HR software is expected.

The company’s success in the public market will be closely watched by industry observers.

SMBs seeking HR software solutions will also be keenly interested in the outcome.

The Paradox of Web 2.0 Ownership

A provocative statement made on social media has sparked a discussion regarding the true ownership of the internet’s current landscape.

Jack Dorsey, the CEO of Block and a proponent of Bitcoin, recently asserted that the notion of individual ownership within “Web3” is largely illusory.

He contends that despite assertions to the contrary, control doesn’t reside with users, but rather with venture capitalists (VCs) and their limited partners (LPs).

Dorsey suggests that the underlying incentives will prevent Web3 from achieving genuine decentralization, characterizing it as a centralized system rebranded with a new label.

A Visual Response from a16z

Chris Dixon, a general partner at a16z, responded with data visualizations.

These charts illustrated the significant ownership stakes held by financial institutions in prominent Web 2.0 companies, including Airbnb, Meta, and Block itself.

This presentation aimed to highlight the concentration of ownership within these established tech giants.

The Counterargument: Decentralization in Practice

However, Alex Wilhelm offers a contrasting perspective, challenging the idea of centralized control in Web 2.0.

Wilhelm points out that shares in these companies are broadly distributed among a diverse range of external investors.

This includes pension funds and index funds, effectively diluting the power of any single entity.

This widespread distribution suggests a degree of decentralization that contradicts Dorsey’s claims.

An Unexpected Owner

The implication is rather surprising: a significant portion of Web 2.0 is, in effect, owned by everyday investors.

As Wilhelm succinctly puts it, “Yes, your mom owns Web 2.0.”

At least a portion of these influential companies is held through the investments of individuals and broader financial vehicles.

Leveraging New Zealand Identity in Startup Fundraising

A recent series of articles focusing on New Zealand’s startup landscape revealed insights from key figures regarding the impact of foreign investment and dedicated funding initiatives on the country’s growing startup scene.

Rebecca Bellan conducted interviews with four prominent individuals to explore these dynamics.

Key Interviewees

• Peter Beck, serving as both CEO and CTO of Rocket Lab.
• Cecilia Robinson, the founder and co-CEO of Tend Health.
• Phoebe Harrop, a principal at Blackbird Ventures.
• Robbie Paul, the CEO of Icehouse Ventures.

According to Paul, despite the inherent difficulties of launching a business from a geographically remote location, significant benefits exist.

He encourages New Zealand-based founders to actively utilize their national identity when seeking investment – to “play the Kiwi card.”

A substantial portion of New Zealand’s population, nearly one in five citizens, resides internationally.

This widespread diaspora has cultivated considerable positive sentiment towards New Zealand globally.

Paul notes that a founder’s New Zealand origin often serves as a natural point of connection.

It is highly probable that individuals of interest internationally possess some level of familiarity or association with New Zealand.

This inherent connection can be a powerful asset during fundraising efforts.

The Inevitable Evaluation: Demonstrating Return on Investment in Threat Intelligence

Within the rapidly changing landscape of cybersecurity, a proactive stance is often the determining factor for the success or failure of organizations and their brands.

However, threat intelligence teams frequently operate in isolation, primarily concentrating on delivering data to security operation centers rather than disseminating crucial insights to other business units.

This approach, as noted by Chris Jacob, Global Vice President of Threat Intelligence Engineers at ThreatQuotient, compels Chief Information Security Officers (CISOs) to validate the expenditure on threat intelligence teams, despite their critical role within contemporary security structures.

Jacob proposes three essential recommendations that CISOs can adopt to enhance their advocacy efforts:

• Conceptualize threat intelligence as a provider of a valuable service.
• Give precedence to seamless integration.
• Establish a standardized process for executive-level reporting.

These steps are vital for showcasing the value of threat intelligence.

Reframing Threat Intelligence as a Service

A fundamental shift in perspective is required. Instead of viewing threat intelligence as a cost center, it should be positioned as a provider of a distinct product or service.

This involves clearly defining the deliverables and demonstrating how these outputs directly contribute to risk reduction and improved security posture.

The Importance of Integration

Effective threat intelligence isn't valuable when confined to a single team. Prioritizing integration with other security tools and business functions is paramount.

This ensures that actionable insights are readily available to those who need them most, enabling a more coordinated and effective defense.

Formalizing Executive Reporting

Regular, formalized reporting to executive leadership is crucial for demonstrating the value of threat intelligence.

Reports should focus on key metrics, such as the number of threats identified, the potential impact of those threats, and the actions taken to mitigate them.

Communicating these results in a clear and concise manner will help secure continued investment and support.

Key Startup Predictions for 2022

The assumptions underlying startup strategies, known as startup theses, are subject to change. As the market develops, forecasting future successes will become increasingly challenging.

Natasha Mascarenhas, Alex Wilhelm, and Anna Heim present their perspectives on the significant trends anticipated for 2022 and the years following.

Predictions from the Experts

• Alex Wilhelm believes that 2022 will mark the year when open source establishes itself as the standard business model for startups.
• Natasha Mascarenhas suggests a strategy of hybridization across all aspects of business.
• Anna Heim forecasts that a significant portion of SaaS companies will implement usage-based pricing during 2022.

These predictions highlight a shift in the startup landscape.

The increasing complexity of the market demands adaptable and innovative approaches.

Delivery Hero’s Strategic Acquisition of a Majority Stake in Glovo

Mergers and acquisitions represent a highly effective strategy for rapid business expansion. Delivery Hero recently employed this approach through its agreement to obtain a majority stake in the Spanish delivery service, Glovo.

A detailed examination of this transaction, conducted by Alex Wilhelm and Anna Heim, reveals that the primary motivation behind Delivery Hero’s acquisition of Glovo is to bolster its position within the competitive food delivery sector.

Glovo’s service offerings, extending beyond traditional restaurant deliveries, align with the burgeoning trend of quick commerce, often referred to as q-commerce. Companies like Zapp and Gopuff demonstrate this trend’s increasing prominence, and Delivery Hero recognized its potential.

The eventual collaboration between the two entities may prove to be a less surprising outcome than initially anticipated.

The decision for the companies to unite represents a logical progression in the evolving market landscape.

Key Factors Driving the Acquisition

The acquisition allows Delivery Hero to tap into Glovo’s existing infrastructure and customer base in Spain and other key markets. This accelerates Delivery Hero’s growth trajectory.

Q-commerce is a significant driver, as consumers increasingly demand rapid delivery of a wider range of goods. Glovo’s capabilities in this area are particularly valuable.

By integrating Glovo’s operations, Delivery Hero aims to achieve greater efficiency and cost savings. This will enhance its overall profitability.

Analysis of the Deal

Wilhelm and Heim’s analysis highlights the strategic importance of Glovo’s multi-category delivery model. This differentiates it from competitors focused solely on food.

The acquisition is expected to intensify competition in the European delivery market. Other players will likely respond with their own strategic initiatives.

Ultimately, the success of the deal will depend on Delivery Hero’s ability to effectively integrate Glovo’s operations and leverage its strengths.