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The 3rd of June is a happy day. It is possible that it is March 822, 2020, as this cursed epidemic is still going strong. We hope that you know the source of peace and that you are enjoying it. We have been reading some hippie literature. Maybe those people are onto something. Wishing you a happy weekend and catching you on the flip side.
The TechCrunch Top 3
- Brrrr, it’s cold in here — there must be some hiring freezes in the atmosphere: It’s been quite the week for layoffs and hiring freezes, as you will see farther down in our fair newsletter. So perhaps it is not a surprise that after telling Tesla employees to get thee into the office, it has now come out that Elon Musk told executives to freeze hiring for salaried workers. Not only did the news do a number on Tesla shares, but it also gave President Joe Biden some fodder for his jobs report.
- The delivery kids aren’t all right: Delivery startups, once the “darlings” of venture capital investment as Kyle put it, found their stride when none of us could go places over the past 2 years. But it seems the faster the delivery times got, or the promise of it, the more certain companies failed to, well, deliver. Sources say correction is a comin’.
- “Inflation and layoffs and supply chain problems, oh my!”: That was Ron’s evaluation of what is going on out there. However, as he found out while listening to Salesforce’s first-quarter performance call, CEO Marc Benioff revealed his company did not see the downed quarter as some other companies did.
Startups and VC
Sometimes, you see companies that speak with a different dialect. I don't think that's the case for Blackbaud's self-proclaimed'social good' cloud provider business, but it's definitely a little whiffy to have had the National Rifle Association as a customer.
The A team thinks that the other A team should be called the girlboss because they have less finger-on-the-pulse cred.
There is more to come.
- Bad contractor, no customer data for you: Kyle reports that Reco, a company using AI to map a company’s data sharing, today announced that it raised $30 million.
- You pivot me right round, baby, right round, like a startup, baby, right round: Matt hosted one of our favorite sessions of TechCrunch’s City Spotlight this week, exploring how the 10-year-old startup Olive ended up pivoting 27 (!) times before accelerating the company into a $4 billion valuation.
- Bosch cleans up: Famous for hand tools and washing machines, and less famous for (but extremely well known within the industry) for automotive components, the 135-year-old company Bosch just announced it has a $295 million corporate venture capital fund to invest in climate, IoT, and autonomous vehicles, Harri reports.
- Chips for the dip: South Korean AI chip maker Rebellions just collected a $50 million investment from Pavillion Capital, Kate reports.
- Yes please to AI: As Pinterest sets its eyes on improving the online shopping experience on its platform, the company announced this afternoon it’s acquiring the AI-powered shopping service for fashion known as The Yes, Sarah reports.
- Moar layoffs today: Both Social app IRL and Insurtech company PolicyGenius cut 25% of their respective workforces, as the Great Belt-Tightening of 2022 continues.
Black Founders Matter presses VCs to pledge commitment to diversity
The image was created byMarceauMichel.
A new initiative to boost diversity in tech was discussed in an interview with a new reporter.
The power dynamics in venture capital need to be changed according to him. You have to start at the people who are left behind.
The 25 by 25 pledge states that 25% of investors' funds should be directed to women entrepreneurs by the year 2025.
The question is why a fund wouldn't do the pledge. The status quo is no longer valid. It doesn't work to keep people out of the picture.
Black Founders Matter presses VCs to pledge commitment to diversity
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Big Tech Inc.
According to Microsoft, a Lebanon-based hacking group was planning to target Israeli organizations. The group created Microsoft accounts and then tried to hack them.
Dave Clark, the CEO of Amazon's consumer division, is leaving the company in July. It is not clear why he is leaving, but he did say that it was time for him to rebuild.
New features news.
We were surprised by the announcement that it was freezing its hiring process. According to initial reports, the company was withdrawing offers to new employees that had already been accepted. They are told that their jobs are safe. We are on it and will hopefully clear this up soon. Cruise is able to charge for ride in San Francisco. A report shows how hard it is to get an app at the top of the store.
