The Inevitable Return of Text | Future of Communication

Startups Weekly: A Focus on Current Trends

This week’s edition of Startups Weekly delivers a human-centered perspective on the latest startup news and emerging trends. To receive this newsletter directly in your inbox, subscribe here.

The Enduring Importance of Written Communication

A recent discussion on Equity centered around the significance of the written word. While acknowledging a potential bias – as we are journalists whose careers depend on writing – the conversation explored deeper nuances beyond the importance of a compelling introduction.

Automattic: A Case Study in Media Evolution

We recently released an in-depth analysis of Automattic, the company powering the WordPress publishing platform. Established in 2005, Automattic stands out as a rare success story, navigating the challenges that have led to the decline of numerous media organizations.

Currently valued at $7.5 billion, the company has successfully demonstrated the financial viability of its vision to investors.

Exploring the Automattic Deep Dive

• Part 1: Origin story “How doing everything wrong turned Automattic into a multibillion dollar media powerhouse” (3,850 words/15 minutes)
• Part 2: Open source development “There’s nothing Automattic about balancing commercial growth with an open source developer community” (2,500 words/10 minutes)
• Part 3: Acquisitions and future strategy “Can social and e-commerce transform the future of the open web?” (2,350 words/9 minutes)
• Part 4: Remote work culture “The future of remote work is text” (2,000 words/8 minutes)

Text-Based Hiring at Automattic

A particularly noteworthy aspect of Automattic is its innovative hiring process. The company utilizes a completely written interview format, eliminating the need for candidates to present themselves via video or audio during recruitment.

This approach minimizes inherent biases often present in traditional Zoom or in-person interviews. Monica Ohara, chief marketing officer of WordPress.com, further elaborated on the rationale behind this strategy.

Rethinking Communication in a Distributed World

Re-evaluating the value of text, similar to how we reconsider the number of synchronous meetings, represents a logical progression for companies adapting to distributed work models. Despite the prevalence of short-form video, the power of words – and audio – remains unparalleled.

Other News This Week

This newsletter will also cover updates regarding PayPal’s potential new partnership and the activity within the Chinese venture capital market. We will not be discussing Facebook’s upcoming rebranding at this time.

PayPal's Potential Acquisition of Pinterest

Speculation arose this week regarding a possible acquisition of Pinterest by PayPal, with reports suggesting a deal valued at $45 billion. The financial technology company has been actively pursuing acquisitions. However, acquiring a social platform centered around photo sharing could indicate a desire to control content, in addition to customer relationships.

Key Takeaways: This potential merger evokes a sense of déjà vu. PayPal’s interest in a content-driven e-commerce business appears years after its separation from eBay. As Jareau Wadé, Chief Growth Officer at Finix, observed, Pinterest differs significantly from eBay as a shopping platform; it functions as the initial inspiration point for purchases for almost 450 million individuals.

Wadé articulated the rationale behind PayPal’s possible Pinterest purchase in a recent Substack article.

Notable Insights:

• The evolving landscape of payments and the impact of Plaid’s expansion are creating potential winners and losers.
• Selecting the appropriate technology infrastructure is a critical consideration for businesses.
• Builder.io is focused on enhancing developer satisfaction through its no-code platform for creating digital storefronts.

China's Startup Ecosystem is Flourishing

Recent data compiled by CB Insights indicates that China experienced a remarkably successful third quarter in 2021 for its startup scene. Excluding a particularly large funding round in 2018, this period represented the most productive three months in history for Chinese startups, measured by both the total value of deals and the number of transactions.

Key Takeaway: This outcome is noteworthy, as it appears to defy expectations given the recent governmental regulations imposed within the region. Despite these restrictions, companies continue to secure funding and expand their operations.

Global Startup Activity Highlights

Several other international developments demonstrate the continued vibrancy of the global startup landscape.

• Mexico's Fintech Boom: Technological advancements are increasingly encouraging broader participation in banking services among the Mexican population.
• XanPool Secures Funding: The Hong Kong-based fintech company, XanPool, has successfully raised $27 million to further develop its decentralized payment network.
• OfBusiness Valuation Growth: Indian startup OfBusiness is currently in negotiations to raise additional capital, potentially exceeding a valuation of $4.5 billion.
• Foodology Receives Investment: Colombia-based cloud kitchen concept, Foodology, has secured $15 million in funding from a16z and Base Partners.

These developments collectively illustrate a dynamic and evolving global venture capital environment, with significant activity occurring across diverse geographic locations.

The resilience of the Chinese startup market, in particular, suggests that innovation and entrepreneurship remain strong despite regulatory headwinds.

TC Sessions: SaaS 2021 – A Preview

Next week marks the arrival of TC Sessions: SaaS 2021! The event, meticulously crafted by our team, focuses on the software-as-a-service industry, a sector consistently drawing substantial investment.

We will explore the factors hindering complete market dominance and examine how evolving needs are fostering groundbreaking innovation.

Expect insightful discussions and valuable perspectives from industry leaders during our expert-led panels.

Event Details and Registration

A comprehensive event agenda is now available for review.

Secure your participation by purchasing a pass and join us on October 27th.

This is an opportunity to connect with peers and gain a deeper understanding of the SaaS landscape.

• Event: TC Sessions: SaaS 2021
• Date: October 27
• Focus: Software-as-a-Service Industry

Don't miss this chance to engage with the forefront of SaaS technology and strategy.

Weekly Tech Roundup

Highlights from TechCrunch

A significant data breach involving ‘stalkerware’ has compromised the phone data of numerous individuals.

Y Combinator has released insights into the qualities people seek in a co-founder.

Station F is expanding its educational offerings with the introduction of an online program designed for aspiring entrepreneurs.

Former President Trump has announced plans to launch a new social media platform, named TRUTH Social.

Featured on TechCrunch+

Ventures focused on a specific mission are experiencing rapid growth amidst the ongoing pandemic.

Advice is sought regarding strategies for attracting international technology professionals.

Founders share valuable lessons learned during their initial fundraising efforts in a thriving market.

Udemy is aiming for a $4 billion valuation with its upcoming initial public offering in the edtech sector.

Best regards,

N