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Equity this week discussed why the metaverse is inevitable for Squid Game. We also explored how the world is changing through the lenses of Big Tech and startups.
Netflix recently acquired its first gaming studio. Although I was skeptical about the streaming quality, I came to realize that Netflix could transform its original content, Squid Game, into high-quality video games. We also discussed how Apple is the largest gaming company and whether a 30% app store discount may be a factor. We also discussed the rise of startups and Andressen Horowitz's new gaming-focused fund. It doesn't have a partner, but it does contain some interesting early investments.
I'm not a gamer. This is partly why the episode was so much fun to record. It was fascinating to see how the industry has changed from being a scrappy indie game with temporary popularity to full-on productions which sneak in recurring ways of staying fresh (and making money).
Venture capitalists and creators are de-risking the sector, which will result in more funding that will help to kick-start new studios and services. The industry will collaborate with other tech trends, such as NFTs, edtech, and cloud infrastructure.
The rest of this newsletter will be about my startup of week, S-1s, and community as a buzzword.
The week's startup is
Chalo! Chalo! is an Indian startup that wants to reduce bus inefficiencies. This startup uses GPS to locate buses and has an app that helps you find them. It raised $40 million in Series C funding this week.
Here's the bottom line: Sometimes numbers don't matter as much as actions. The startup announced that it will use $10m of the proceeds to purchase back stock options in order to reward its employees and past employees, as well as early angel investors. This is a flexible move by the founder and is evidence that India is maturing in its startup ecosystem.
Other nominees
Rivians IPO filing
Rivian filed its S-1 last Friday, which is what we love. The EV company provided numbers and strategies that helped us to understand how costly it was to build its business, what market size estimates were bogus, and if Amazon and Tesla are main characters or side bales.
These are the facts, as shared by Kirsten Korosec, Transportation Editor, and Alex Wilhelm Senior Editor:
Rivian S-1 filing contains 81 mentions about Amazon. This is a high number because Amazon is both an investor and customer of the company. According to the filing, Amazon holds at least 5% of Rivian. However, the final figure is not yet known. Along with several investors, Ford has a greater stake than 5%. Rivians IPO bet is largely a wager that Amazon will buy the 100,000 vehicles it expects to. We would also add a timeline and a price point that make sense for Rivian. There is plenty of room for things not to go according to plan between the purchase of 10 vehicles in December 2021 and delivery of the remaining 99.990 vehicles that Rivian plans to deliver to one its key shareholders.
The wheels turn:
Are they customers or a community?
It is important to distinguish between creating a diverse and nuanced community and using fancy terms to describe your most loyal customers. This week, we discussed the lowering of Equity's community definition. Contrary Capital, which finances student entrepreneurs and stars within companies, closed its second fund. This sparked the whole conversation.
Here's what you need to know: Contrary has brought together a 350-member community of students (aka investment partners) that it wants to advise (and ultimately invest in). About 45% identify as female, while 65% identify as non-white. Eric Tarczynski, Contrary founder, said that he wouldn't be surprised if any of these students didn't find the next Stripe. He wants to see the community full of talented people. Even if they don't start their own projects he has a list of potential hires that he can use to build his own portfolio.
Clique, clique, clique:
Around TC
TechCrunch Sessions returns, and we're starting with SaaS! Come join us October 27th as we discuss, debate, and question the competitive landscape of software as a service. My colleagues brought together some the most prominent names in the industry, including Sarah Guo from Greylock and Kathy Baxter at Salesforce as well as Daniel Dines at UiPath.
Here's the complete agenda for TC Sessions: SaaS. For $75, early-bird tickets are still available for those who are interested. Get yours now to save $100 before the prices rise!
All week
TechCrunch: Seen
After huge leakage of creator payout data, Twitch streamers react
Elon Musk announces that Tesla will move its headquarters to Austin
Instacart has acquired catering software company FoodStorm
Software developers: Why generic marketing strategies don't work
Telegram claims it gained 70M users in the day of Facebook outage and WhatsApp outage
TechCrunch+ - Seen
Brian Armstrong, CEO of Coinbase, might not be having much fun at work. You guys
SaaS subscriptions might not be a good fit for your customers.
It's not hard to see the Athletics numbers.
Techstars doubles down on Europe
VCs believe there are more opportunities for startups in Latin America
