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Daily Crunch: November 10, 2021

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Catching Up on Tech News

Greetings, and welcome to today’s Daily Crunch for November 10, 2021. Much of the day was spent traveling by train along the Eastern Seaboard, allowing for a focus on reading literature rather than the latest technological developments.

Consequently, a substantial amount of catching up is now required. Fortunately, TechCrunch published a wealth of articles to facilitate this process.

A Busy News Day

There is a considerable amount of content to review and process. The team at TechCrunch ensured a comprehensive coverage of the tech landscape.

This extensive reporting provides a solid foundation for staying informed about the industry’s key events and trends. — Alex

TechCrunch's Leading Three Stories

Here's a rundown of the most significant tech news as reported by TechCrunch.

Rivian's IPO Makes Waves

Rivian’s initial public offering generated considerable excitement on Wall Street. The electric vehicle manufacturer’s shares opened at a price exceeding $100, significantly above the initial pricing of $78 per share.

This valuation positions Rivian as exceeding the market capitalization of established automotive giants like GM and Ford. Notably, Rivian currently generates considerably less revenue than these traditional automakers.

The resurgence of high-risk IPOs is now demonstrably underway.

Expensify CEO Discusses Going Public

TechCrunch interviewed Expensify founder and CEO David Barrett regarding the company’s recent public offering.

The discussion centered on Barrett’s decision to pursue a traditional IPO route and an assessment of the overall market size for Expensify’s services.

Competition within the expense management sector is intensifying, with companies like Airbase actively vying for market share.

Further details regarding Expensify’s financial performance are available in a related report.

Investor Difficulty Understanding Crypto Companies

Coinbase stock prices have declined following the release of its Q3 earnings report.

Although the company had previously cautioned investors about an anticipated decrease in trading revenue, the reported figures still disappointed Wall Street analysts.

It appears that public market investors are encountering challenges in accurately forecasting the quarterly performance of companies focused on cryptocurrency.

A clear understanding of the volatility inherent in the crypto market remains elusive for many traditional investors.

Startups and Venture Capital Updates

Brian Heater, a member of our team, is currently focused on several projects. He is preparing to launch his robotics-focused newsletter, Actuator, which is available for free subscription. Additionally, he recently authored an extensive article concerning Bowery, a company operating within the vertical farming sector.

Consequently, we invited him onto the Equity podcast to discuss the nuances of farming practices that prioritize vertical space over horizontal expansion.

Recent Funding and Innovations

• Introducing the Autism Impact Fund: A newly established venture capital fund aims to fundamentally alter approaches to autism diagnosis, treatment, and daily living through strategic investments. The fund intends to allocate capital to ventures and products with the potential to positively influence the broader autism community – a notably worthwhile endeavor.
• Subscription Services for Trees: This is not related to cannabis. Ecologi, a startup, is developing a subscription model enabling consumers to contribute to large-scale tree planting initiatives.

• Trees play a crucial role in carbon sequestration, impacting the global climate. The company recently secured $5.75 million in funding. This represents a 'Trees as a Service' (TaaS) model!

• Opportunities Remain in Sales Tooling: Momentum’s recent $5 million seed round highlights the continuing need for innovation in this area.

• The company is developing a Slack integration designed to integrate sales processes more closely with other organizational functions. This is an ambitious goal, considering Slack is now owned by a major CRM provider.

• Cacheflow Emerges from Stealth with $6M Funding: Cacheflow believes the current SaaS purchasing experience is outdated and is attempting to modernize how software payments are handled.

• The startup, publicly launching today, offers a solution allowing software companies to receive immediate payment while enabling customers to pay on a recurring basis.

• Significant Funding Rounds – ControlUp: ControlUp has secured $100 million in funding to further expand its IT service focused on enhancing desktop performance.
• Major Investment – Workato: Workato has raised $200 million to facilitate greater automation of routine tasks for enterprise clients, resulting in a company valuation of $5.7 billion.
• Daily Secures $40M for Video Software: Daily initially raised a $4.6 million seed round in May 2020.

• The company is now benefiting from a substantial new round of funding, which, as noted by Christine Hall, will support continued development and sales of its API-delivered video embedding service.

• Tiger Global Invests in Moov: Tiger Global has invested $41 million in a Series A funding round for Moov.

• Moov operates a marketplace for pre-owned manufacturing equipment. Considering the importance of existing physical tools in addressing the global chip shortage, this venture holds significant potential.

• Expanding the Toast Model to Latin America: Inspired by the success of Toast, a U.S. provider of software, hardware, and payment solutions, Zak aims to replicate this business model in Latin America.

• He has secured $15 million in funding to pursue this objective.

• Volcanic Eruption and Bitcoin Adoption: TechCrunch recently reported on how the eruption of a volcano in the Democratic Republic of the Congo prompted displaced individuals to utilize bitcoin for rebuilding their lives. This is a compelling story deserving attention.

Airbnb CEO Brian Chesky on the Evolution of Work and a Pivotal Past Decision

A comprehensive discussion between Airbnb’s Chief Executive Officer, Brian Chesky, and Jordan Crook, Managing Editor at TechCrunch, recently explored the company’s adjustments following the onset of the global pandemic.

The conversation encompassed a wide range of subjects, including Airbnb’s approach to remote work, the handling of host liability concerns, and Chesky’s most significant regret stemming from the COVID-19 pandemic.

(Access to exclusive content and resources for founders and startup teams is available through TechCrunch+. Registration can be completed here.)

Adapting to a New Landscape

Chesky detailed how Airbnb was forced to rapidly evolve its business model in response to the unprecedented disruption caused by the pandemic.

Initially, the company experienced a dramatic decline in bookings as travel restrictions were implemented worldwide.

However, Airbnb quickly pivoted to focus on domestic travel and longer-term stays, capitalizing on the shift towards remote work.

The “Work Anywhere” Policy

The implementation of Airbnb’s “work anywhere” policy was a key component of this adaptation.

This initiative allowed individuals to book Airbnb accommodations for extended periods, effectively transforming them into remote workspaces.

The policy proved popular, attracting a new segment of users and contributing to the company’s recovery.

Addressing Host Liability

A significant challenge for Airbnb has been addressing liability issues for its hosts.

As the platform has grown, concerns have arisen regarding potential accidents, damages, and legal disputes.

Chesky outlined the steps Airbnb is taking to mitigate these risks, including enhanced insurance coverage and improved host protection programs.

A Regret from the COVID-19 Era

Reflecting on the pandemic, Chesky identified one particular decision he wishes he had handled differently.

He expressed regret over the initial decision to issue widespread refunds during the early stages of the crisis.

While intended to be a gesture of goodwill, Chesky now believes that a more nuanced approach would have been more beneficial for both hosts and the company.

Looking Ahead

The interview concluded with a discussion of Airbnb’s future plans and its vision for the evolving travel landscape.

Chesky emphasized the company’s commitment to innovation and its desire to create a more flexible and personalized travel experience.

He also highlighted the importance of sustainability and responsible tourism.

Big Tech Inc.

YouTube is modifying its dislike feature: Alphabet, the parent company of YouTube, is removing the public display of dislike counts. This change is intended to reduce harassment and discourage negative behavior directed towards creators.

While unfortunate that such a measure is necessary due to problematic user interactions, it represents a product adjustment aimed at fostering a more positive environment.

Twitter's Crypto Initiatives

Twitter is establishing a dedicated cryptocurrency team: Considering the well-known enthusiasm of Twitter CEO Jack Dorsey for bitcoin, the creation of this team is a logical development. Dorsey’s preference for bitcoin over other blockchain technologies has been previously noted.

Twitter has already explored integrations with NFTs and implemented cryptocurrency tipping features, signaling a growing interest in the decentralized web.

Instagram's Focus on User Wellbeing

Instagram is introducing tools to promote mindful usage: Users of the Meta-owned platform can now set reminders to pause scrolling after a predetermined duration. This feature aims to help users manage their time on the app.

It’s worth remembering that Meta is the new corporate name for Facebook.

Apple's New Business Solution

Apple is launching a device management service for small businesses: Maintaining secure and updated hardware presents ongoing challenges for organizations. Apple is addressing this need with “Apple Business Essentials,” a beta program.

This solution is specifically designed for companies with fewer than 500 employees, offering a streamlined approach to device management.

Google's EU Fine

Google’s appeal of a substantial EU fine has been largely unsuccessful: The U.S.-based search engine’s attempt to overturn a significant penalty related to a 2017 case concerning its shopping service has met with limited success in European courts.

The original fine stemmed from allegations of anti-competitive practices within the EU.

Legal Action Against Uber

The U.S. Department of Justice is pursuing legal action against Uber: The lawsuit alleges that a portion of Uber’s product may be discriminatory towards individuals with disabilities.

The Department of Justice contends that Uber’s services are not fully accessible to all users.

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