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Daily Crunch: September 30, 2021

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Greetings, and welcome to the Daily Crunch for September 30, 2021. This marks the final day of the third quarter of the year.

Q3 Wrap-up and Q4 Outlook

The conclusion of Q3 signifies the approaching earnings season. This period will also bring a wealth of venture capital data to light. However, many are reflecting on the swift passage of time and the arrival of Q4.

TechCrunch Sessions: SaaS Event

Opportunities to secure affordable tickets to our Sessions: SaaS event are diminishing rapidly. Interested attendees are encouraged to purchase tickets promptly.

I will be hosting the event and participating in several panel discussions. We hope to see you there! – Alex

The TechCrunch Top 3

Recent developments highlight key stories in the tech world, as covered by TechCrunch. These include Facebook’s data release practices, the growth of India’s startup ecosystem, and Alloy’s funding for anti-fraud technology.

Facebook’s Data Transparency

Obtaining unfiltered data and research from Facebook regarding its platform often requires leaks. Following a leak, Facebook might release the information, but typically with significant framing and interpretation. This approach to transparency was a point of discussion during today’s Senate hearing.

The social media giant’s tendency to control the narrative surrounding its own research has been a long-standing concern.

India’s Booming Startup Market

Early indicators suggest that India’s venture capital market is poised for a record-breaking third quarter. This growth reflects the broader rivalry between India and China, now extending into the startup landscape.

Further insights into India’s dynamic startup scene can be found in TechCrunch’s dedicated startup notes.

Alloy Secures $100M Funding

Not all fintech startups target individual consumers. Alloy, a B2B fintech company, focuses on providing solutions for businesses.

The company specializes in automating identity verification during onboarding and monitoring transactions. This recent funding round values Alloy at $1.35 billion, as reported by TechCrunch.

Alloy’s work is crucial in bolstering security and efficiency within the financial technology sector.

Startups & Venture Capital Updates

To begin, Brian Heater of TechCrunch deserves recognition with a score of 47 for his headline craftsmanship.

As previously indicated, we will commence our exploration of the startup landscape with two reports originating from India:

Ola Electric Secures $200M Funding: This Bangalore-based company, specializing in the production of electric scooters, operates as a component of the broader Ola organization. Ola is a significant startup within the Indian market, providing ride-hailing services nationwide. The Electric division of Ola has experienced valuation growth, now assessed at $3 billion, a rise from $1 billion just two years prior.
Tiger Global Invests in OfBusiness: Concurrent with the valuation increases observed in Indian startups, Tiger Global has invested in OfBusiness. This $207 million Series F funding round has effectively doubled OfBusiness’s value in a mere two months, reaching a substantial $3 billion. The company functions as a commerce platform focused on the sale of industrial goods and the provision of credit facilities to small businesses. Considering the extensive number of SMBs present in India, the startup appears well-positioned for continued expansion.

Now, let’s turn our attention to recent developments in venture capital:

BGV Announces $110M Fourth Fund: Benhamou Global Ventures (BGV) has established a fourth fund for investment purposes. This new fund is 60% larger than its predecessor. To date, BGV has invested in 28 companies and anticipates expanding this portfolio by over a dozen with the resources from its latest fund.
Counterpart Ventures Launches with $110M First Fund: The formation of Counterpart Ventures, stemming from the spin-out of two former corporate venture capital investors, has resulted in the launch of a $110 million fund. The founders previously invested in companies such as Noom and DataRobot.

Finally, a summary of recent venture funding rounds:

Speedata Attracts $70M for Specialty Chip Development: The significant commercial potential of specialized chips is the driving force behind Speedata, which recently emerged from stealth mode and announced $70 million in funding. The company is developing what it describes as the first dedicated processor designed to optimize cloud-based database and analytic workloads. Given the scale of the data center market and the increasing demand for data science capabilities, Speedata is targeting a potentially vast market.
Voodoo Acquires Beach Bum: This acquisition involves French mobile gaming company Voodoo purchasing Israel-based Beach Bum, a company specializing in tabletop and card games. This strategic move allows Voodoo to leverage Beach Bum’s expertise and intellectual property for new game development. Voodoo currently boasts 300 million monthly active users, highlighting the substantial size of the casual gaming market.
Forta Secures $23M for Smart Contract Security: The expansion of the blockchain economy necessitates enhanced security measures. As smart contracts become increasingly integral to the crypto world, their security is paramount. Forta, supported by prominent crypto-focused investors, offers a solution to address these security challenges.
Additional Funding for B2B Gifting Solutions: Following Sendoso’s recent $100 million funding round, Reachdesk has secured $43 million to further develop its B2B gifting platform. This sector integrates e-commerce, sales tools, and physical products into a comprehensive package.
Accel and Tiger Invest $23M in Mexican B2B Payments Platform Higo: Accel and Tiger Global have jointly invested $23 million in Higo, a Mexican B2B payments platform. This investment follows a $3.3 million seed round completed just six months ago, underscoring the growth of the Mexican startup market. The rapid follow-on investment also reflects a characteristic of the venture capital landscape in 2021.

Navigating Growth: From Series A to Series C Funding

Obtaining reliable, tested guidance regarding startup scaling presents a significant challenge.

Research from Dealroom indicates that a mere 7% of startups securing seed funding achieve the necessary expansion to qualify for a Series C investment.

To develop a practical guide for founders aiming to increase revenue from $1 million to $25 million annually, Arthur Nobel, a principal at Knight Capital, completed 47 interviews with both founders and investors experienced in guiding companies through Series A to C stages.

This analysis goes beyond a simple summary, providing strategies for managing T2D3 growth – a pattern of triple, triple, double, double, double increases – alongside targeted hiring advice and other crucial strategic perspectives.

Furthermore, the resource includes actionable steps and visual aids to assist in building a personalized scaling roadmap.

Nobel emphasizes the importance of accurately assessing the current stage of your company and its individual departments, and focusing efforts solely on the requirements of that specific stage.

(TechCrunch+ is a membership program designed to empower founders and startup teams. Registration is available here.)

Big Tech Inc.

Several developments are unfolding within major technology companies, impacting advertising, manufacturing, and social media experiences.

TikTok's New Advertising Initiatives

TikTok is actively developing a suite of innovative ad products designed to enhance brand engagement. These include interactive formats like clickable stickers and branching narrative ads, resembling “Choose Your Own Adventure” stories.

Furthermore, features such as “super likes” are being introduced to provide brands with additional avenues for capturing user attention on the platform.

Potential Sale of Lordstown Factory

Lordstown Motors is considering the sale of its manufacturing facility, originally acquired from General Motors in 2019, to Foxconn.

This potential transaction involves a company known for challenges in EV truck production, Lordstown, and a company with a limited track record of successful factory construction in the US, Foxconn.

Integration of Facebook Messenger and Instagram

Facebook is streamlining communication between its platforms, making cross-app messaging between Facebook and Instagram more accessible.

Specifically, users can now engage in group conversations that span both applications. This move is viewed by some as an effort to bolster Facebook’s core app at the potential expense of Instagram’s user experience.

Spotify's Podcast Enhancement

Spotify is focused on increasing podcast consumption among its user base. This strategy aims to improve the company’s gross-margin and establish greater control over pricing through exclusive podcast content.

To achieve this, Spotify is globally releasing new podcasting tools, including interactive polls and Q&A functionality. These features were previously available in a beta testing phase.

The rollout of these tools is intended to foster greater audience participation and engagement within the Spotify podcast ecosystem.

TechCrunch Insights: Identifying Leading Growth Marketing Professionals

Image Credits: SEAN GLADWELL / Getty Images

TechCrunch is dedicated to assisting startups in locating the most suitable experts to address their specific requirements.

Currently, we are compiling a curated list of premier growth marketers within the industry.

Since the launch of our survey, we have received numerous valuable suggestions regarding accomplished growth marketing professionals serving the startup ecosystem.

Seeking Further Recommendations

We anticipate receiving and reviewing additional submissions as they are provided.

Your input is valuable! Please contribute your recommendations by completing the survey available here.

The goal is to create a definitive resource for startups seeking to accelerate their growth through effective marketing strategies.

This initiative aims to connect emerging companies with proven growth marketing talent.
The survey responses will be instrumental in identifying the top performers in the field.

We appreciate your participation in helping TechCrunch build this essential resource.