Mensa Brands Valuation: Indian DTC Startup Hits $1B+

Daily Crunch: November 16, 2021

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Greetings, and welcome to Daily Crunch for November 16, 2021. Today’s coverage features topics ranging from mac and cheese to AI companies valued at over $1 billion, alongside insights into the growing prevalence of audio content.

Before delving into the details, remember that TechCrunch’s upcoming Sessions: Space event is fast approaching, taking place in under a month!

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TechCrunch's Leading Three Stories

Upgrade has seen its valuation increase to $6 billion following a $280 million funding round.

The company, which concentrates on the U.S. market, is aggressively expanding its range of fintech products and maintaining a fast pace of development.

Notably, this latest funding occurred less than four months after their previous raise, demonstrating a remarkably quick succession of investment for even the fintech sector.

Investor Confidence in AI Startups

Artificial intelligence is transitioning from a popular term to a viable software solution, fueling substantial investment in numerous startups.

These AI-focused companies are collectively securing tens of billions of dollars in funding each quarter.

Private investors are seemingly anticipating a significant surge in initial public offerings (IPOs) as AI startup valuations continue to climb.

Concerns surrounding the quality of AI revenue streams have largely subsided.

The Growing Focus on Audio Content

Two recent developments highlight the increasing importance of audio as a medium.

Medium has announced its third acquisition of the year, Knowable, with the intention of enhancing its offerings in the audio education space.

Furthermore, Racket believes that short-form podcasts represent the future of audio consumption.

This trend occurs as Spotify, while continuing to integrate its podcast investments, also expands into the audiobook market.

Startups & Venture Capital Updates

AnyDesk Secures $70M Funding: AnyDesk delivers software solutions for remote access, device management, and collaborative work environments. The increasing prevalence of remote and hybrid work models is contributing to the company’s success. This latest investment round establishes AnyDesk’s valuation at $660 million.

E-commerce Consolidation Continues

The ongoing trend of investment in companies aiming to consolidate e-commerce brands persists. Heyday recently secured $555 million – the breakdown between equity and debt remains undisclosed – to further acquire and expand direct-to-consumer (DTC) brands. Competition in this space is significant, with players like Thrasio, which raised $1 billion in October, and Perch, with $775 million in May.

Streamlining Healthcare Billing

While optimal patient care is paramount, the complexities of healthcare administration, particularly billing, present a significant challenge in the United States. Nirvana Health addresses this issue by providing services designed to facilitate a smooth and efficient financial process for therapists and healthcare providers.

SnapAttack Receives $8M for Cybersecurity

Spinning out from Booz Allen, a well-regarded consulting firm, SnapAttack has obtained new funding to bolster its cybersecurity operations. The company asserts it possesses the “largest library of labeled threat data globally,” a claim that underscores its capabilities in the field.

Luxury Presence Expands with $25.9M Series B

Developing software tailored to specific industries or professional roles is a thriving market. This specialized, or vertical SaaS, approach is proving highly successful. Luxury Presence exemplifies this trend, having raised $25.9 million to continue building software solutions specifically for real estate agents. Bessemer Venture Partners participated in this funding round, a firm that has been less visible in recent headlines than anticipated.

Conductor Re-emerges with $150M

Conductor experienced a brief period as part of WeWork, a venture that ultimately proved unsuccessful. The company has since regained its independence and is now actively raising capital to drive its own growth, securing $150 million in funding. Conductor specializes in SEO and content marketing software. The initial acquisition by WeWork remains a notable example of a strategic misstep.

Rapid Growth: The Rise of "Insta-Unicorns"

While substantial seed funding rounds garner attention, the emergence of “insta-unicorns” – startups achieving a $1 billion valuation within a year of founding – is particularly remarkable. Mensa Brands, another player in the DTC acquisition space, has reached this milestone following a recent $135 million raise.

A Unique Blend: Goodles and Celebrity Endorsement

The fusion of startups, celebrity endorsements, and everyday products has resulted in Goodles, a new noodle brand backed by Gal Gadot. A product review is planned as soon as availability permits, offering a firsthand assessment of this innovative offering.

Five Crucial Pitch Deck Slides Founders Frequently Mismanage

Image Credits: dem10 / Getty Images

The current environment presents a favorable landscape for launching a startup. However, securing external funding typically necessitates the creation of a comprehensive pitch deck.

Many founders find this process challenging, as it demands clear responses to key investor inquiries. These include demonstrating a viable strategy for achieving substantial year-over-year revenue growth and articulating the optimal application of your product.

Jose Cayasso, the CEO and co-founder of Slidebean, a pitch deck design firm, identifies five specific slides that consistently present difficulties for founders when presenting to investors.

• Market Approach
• Application/Target Demographic
• Total Addressable Market
• Potential Results
• Founding Team

He leverages examples from successful pitch decks, such as those utilized by Airbnb and Uber, to illustrate effective methods for circumventing these common errors.

Founders and startup teams can gain a competitive edge through TechCrunch+, our membership program. Registration is available here.

Delving Deeper into Common Pitch Deck Errors

Cayasso emphasizes that investors aren't simply looking for a compelling story. They require concrete evidence and a well-defined plan for scaling the business.

A common mistake is presenting a go-to-market strategy that is overly optimistic or lacks sufficient detail. Investors want to understand precisely how you will acquire customers and achieve profitability.

Understanding Your Ideal Customer

Clearly defining your use case/audience is paramount. Avoid broad generalizations and instead focus on a specific niche market.

Investors need to visualize the customer and understand their pain points. A well-defined target audience demonstrates a focused approach.

Accurately Assessing the Market

The TAM (Total Addressable Market) slide often suffers from inflated figures. It’s crucial to present a realistic and data-driven assessment of the market opportunity.

Investors will scrutinize your methodology and challenge unrealistic projections. A conservative yet credible TAM is far more effective.

Articulating Potential Outcomes

Investors are interested in the potential return on their investment. The possible outcomes slide should clearly outline the various exit strategies and potential financial returns.

This section should demonstrate a clear understanding of the market landscape and the potential for long-term growth.

Highlighting the Strength of Your Team

Finally, the team slide is your opportunity to showcase the expertise and experience of your founding members. Investors invest in people as much as they invest in ideas.

Emphasize relevant skills, past successes, and the team's ability to execute the business plan. A strong team inspires confidence.

Big Tech Inc.

Today’s Big Tech updates begin with a pair of significant transactions, as reported by Ron Miller. These deals involve $25 billion in liquidity within the data center sector.

This represents a substantial financial movement in a single day.

Recent Developments

• Meta faces scrutiny regarding its advertising practices: Reports from Australia suggest that Meta’s claim of limiting ad targeting towards children, announced earlier this year, may not be fully effective.
• Researchers allege that the Facebook subsidiary continues to track teenagers for advertising purposes on its social media platforms.
• Slack advances no-code development capabilities: Slack has evolved beyond a simple messaging service.
• It has become a versatile platform, and now offers a method for users to modify applications within their workflows.
• This development moves closer to a future where programming is accessible to everyone, rather than being a specialized skill.
• Pinterest aims to revitalize innovation: Pinterest has launched TwoTwenty, an internal team dedicated to experimental product development.
• The goal of TwoTwenty is to potentially accelerate Pinterest’s user acquisition rate.
• Jumia reports revenue growth alongside increased losses: Jumia, a prominent e-commerce company in Africa, continues to demonstrate growth in revenue.
• However, it also experiences ongoing financial losses.
• TechCrunch regularly covers Jumia’s earnings, providing insights into the broader African e-commerce landscape.

Jumia's performance offers a window into the evolving African market.

Recommendations for Growth Marketing Professionals

Image Credits: Damon Moss / Getty Images

TechCrunch is seeking recommendations for accomplished growth marketers. These professionals should demonstrate proficiency in areas such as SEO, social media marketing, and content creation.

Growth marketers are invited to share this survey with their clients. We are interested in gathering feedback regarding positive client experiences and the value provided.

Survey Purpose and Previous Coverage

The purpose of this survey is to inform TechCrunch’s reporting on the growth marketing landscape.

Those interested in understanding how prior survey results have influenced TechCrunch’s content can review an article published on TechCrunch+ by Miranda Halpern. The article, titled “Growth marketing experts survey: How would you spend a $25,000 budget in Q1 2022?” provides valuable insights.

• The survey focuses on identifying marketers with a proven track record.
• Client testimonials are a key component of the evaluation process.
• Results will be used to highlight effective strategies and professionals.

TechCrunch aims to connect businesses with skilled growth marketers through this initiative.

Engaging with the Community

A live discussion featuring Ben Parr is scheduled for tomorrow, Wednesday, November 17th. The event will commence at 3:00 PM Pacific Standard Time, or 6:00 PM Eastern Standard Time.

Mr. Parr will be participating in a Twitter Spaces session, hosted by the official TechCrunch account, alongside Walter Thompson.

Discussion Focus

Prior to the event, readers are encouraged to review Ben Parr’s recent publication. The article, titled “Collect and leverage zero-party data to personalize marketing and drive growth,” provides valuable insights.

Attendees are welcome to formulate questions based on the article’s content and bring them to the Twitter Space for discussion.

Image Credits: Paper Boat Creative (opens in a new window) / Getty Images (Image has been modified)