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Good morning and welcome to Daily Crunch Friday, August 27, 2021. It's been a busy week! We have had a lot of news in the last 24 hours, including Chinas latest regulatory push and Apples modest concessions regarding its App Store. There has also been startup news.
Oh, and Canva CEO Melanie Perkins will be coming to Disrupt. Alex
TechCrunch Top 3
China will crack down on algorithms: Friday's push to tighten control and regulate China's technology market was continued by a government agency announcing a draft set rules for algorithms. China is trying to reduce corporate data collection. These new rules are part of a wider effort to control algorithms. Irony is dead, obviously.
Friday saw a new set of guidelines for algorithm design announced by a government agency, continuing the push to tighten control and regulate China's technology market. China is seeking to limit corporate data collection. These new rules are part of a wider push to regulate and control China's technology market. Irony is dead, obviously. Companies can't get enough startup capital: This is our conclusion from looking at the record-breaking results of corporate venture capital (CVC). CVCs participate in larger rounds of startup funding. We looked into the why and how of the most recent data.
This is our conclusion from looking into the record-breaking results of corporate venture capital (CVC). CVCs participate in larger rounds of startup funding. We looked into the why and how of the most recent data. Apple grants the smallest concession to the App Store: TechCrunch reported today that Apple has agreed to allow apps to share information about how they pay for their purchases, outside of the App Store or iOS app. This was interesting. Apple's grip on App Store is tight but we might be starting to see signs that it is losing its grip.
Startups/VC
Let's start with a16z, a venture capital conglomerate. It has crypto funds, main funds, and many other funds. Today, the group announced a $400million capital pool for seed deals. This fund size suggests that a16z either expects to pay a lot for seed equity, or it is willing to take on a variety of bets. We'll see.
Rivian files for publication: If you're looking for another EV company to complement your personal investments, this is the right place! Rivian has applied privately to become public. We were, frankly, thrilled by the deal. Lordstown is not. The company has now raised more than $10 billion through external capital. It recently raised $2.5 billion. We would like to see the results of all this funding.
Good news, if you were searching for another EV company to complement your personal investments, there is good news! Rivian has applied privately to become public. We were very excited about this deal, but Lordstown is not. The company has now raised more than $10 billion through external capital. It recently raised $2.5 billion. We would like to know the results of all this funding. Forbes is also going public. Forbes, the media-magazine-company, is using a SPAC to make itself public. We looked at its financial statements to find out what it has been doing and how COVID-19 had impacted its results.
We should also note that Forbes, the media-magazine and media company, is using the boom in blank check combinations to go public via a SPAC. We looked at its financial statements to find out what it has done and how COVID-19 had impacted its results. Toast will also be going public. However, your humble servant was unable to post any information on the matter before it was newsletter time. TechCrunch.com will have more to share.
Zeal, a payroll API startup, raises Series A. The embedded fintech market is competitive and busy. Zeal's work is quite interesting. Is there enough demand for a payroll API product to be a viable option? I would have questioned this a few years back, but the OKR startup community has shown me that there is a lot of demand for software all over the globe.
It is a competitive and busy space in embedded fintech, making Zeal's work quite interesting. Is there enough demand for a payroll API product to be able to compete in the global market? A few years back, I might have questioned, but the OKR startup community has shown me that there is a huge demand for software. Sitenna will help telcos install 5G antennas. Sitenna is part of the next batch Y Combinator-backed startups and is looking to get a piece in the capital wave that will bring 5G mobile connectivity to our lives. This startup is very interesting, so please read the post. However, keep in mind that YC demo day is next week so we are heading into a heavy news cycle over these next few days.
Sitenna, who is joining the next batch Y Combinator-backed startups will be looking for a piece in the capital wave that will bring 5G mobile connectivity to our lives. This startup is very interesting, so please read the post. However, keep in mind that YC demo day is next week so we are heading into a heavy news cycle over these next few days. Sastrify raises $7M: Sastrify, a Cologne-based startup, wants to help companies manage and buy SaaS. This is why the world needs it. Now that software is all a subscription fee it is important to not overpay and to know what you are paying for. A startup is a combination of big deals and founder work. Sastrify, despite its youth, is already cash-flow positive.
7 ways to establish relationships with VCs during the pre-pitch
Before they can confidently pitch potential investors face-to-face, many founders have to overcome some emotional hurdles.
Evan Fisher, founder of Unicorn Capital, suggests that entrepreneurs meet pre-pitch to strengthen and build relationships before asking for a check.
This is because we don't want to make money, but we do want to be friends. It will get you on the radar of investors so that when it comes time to raise your next round theyll be more likely to pick up the phone to talk to you.
Pre-pitches can do more than just cure the jitters. They help founders gain a better understanding of how VCs think, and sometimes lead to unexpected outcomes.
Fisher says that investors are motivated by necessity and are therefore opportunists. You never know when the FOMO might kick in.
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Big Tech Inc.
Bad week for Pelotons: What happens if you report a poor earnings report to Wall Streets standards, and then are subpoenaed simultaneously by the U.S. Department of Justice (DHS)? Your share price drops and you hope Monday will be better than Friday.
What happens if you submit a poor earnings report to Wall Streets standards, and are then subpoenaed simultaneously by the U.S. Department of Justice (US Department of Homeland Security)? Your share price drops and you hope Monday will be better than Friday. Tesla wants to sell electricity: This is a great idea. According to TechCrunch, Tesla applied to be a retail electric provider in Texas. This means that it could purchase wholesale electricity from power generators to sell it to customers.
This is a great idea. According to TechCrunch, Tesla applied to be a retail electric provider in Texas. This means that it could purchase wholesale electricity from power generators to sell it to customers. Twitter attempted to bring back the good old days: It made its service slow and stop working for people today. Do you remember the good times when Twitter was always down? Personally, I miss the Fail Whale. We think Twitter does not.
Its service slowing down and going down for people today. Do you remember the good times of Twitter, where it was always up and running? Personally, I miss the Fail Whale. We think Twitter does not. Venky Adivi, Canonical's director of software, has some thoughts about open-source software and the U.S. government. Spoiler alert: The news is generally good.
TechCrunch Experts: Growth Marketing
We reached out to founders of startups to find out who they go to for the best growth marketing practices. Please complete the survey.
Check out the testimonials below!
Marketer: Natalia Bandach, Hypertry
Jean-Noel Saunier recommends Growth Hacking Course
Testimonial: Natalia has a unique approach to growth drivers, experimentation and creativity. She is full of innovative solutions and many ideas she quickly tests by doing experiments. Instead of focusing on one thing, she seeks to determine what is most important for a company and creates experiments that are both crucial in the short-term as well as long-term. She is an ethical growth manager and likes to see the business bring real value. She is always open to changing directions, but she focuses on the well-being of the team, professional growth, and avoiding burnout.
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On Tuesday, August 31, at 1 pm PDT/4 pm EDT, Danny Crichton will talk to Azeem Azhar on Twitter Spaces about his forthcoming book, The Exponential age: How Accelerating Technology Transforms Business, Politics, and Society. It will be available on September 7, 2021.
