Daily Crunch: Nubank EC-1 - Fintech News & Analysis

Daily TechCrunch Update: June 14th

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Today marks the Daily Crunch for Monday, June 14th. I am filling in for Alexander Wilhelm during his time away from reporting – contingent upon not being called for jury duty.

Nubank EC-1 Launch and Startup Deep Dive

A major development today is the release of the Nubank EC-1. This represents a comprehensive investigation into one of the world’s most substantial startup entities. Further details can be found below.

Introducing the "Found" Podcast

TechCrunch has recently introduced a new podcast series. “Found” features Darrell Etherington and Jordan Crook interviewing a different early-stage startup founder weekly.

These interviews explore the challenges and triumphs inherent in launching a new company. The latest episode includes a conversation with Cory Siskind, founder of Base Operations.

Base Operations recently secured $2.2 million in seed funding. This capital will be used to expand their street-level threat-mapping platform, designed to bolster enterprise security operations.

You can subscribe to “Found” on various platforms, including Apple Podcasts, Spotify, Google Podcasts, and your preferred podcast application.

— Henry

TechCrunch's Leading Three Stories

Recent discussions between TechCrunch’s Matthew Panzarino and Apple leadership following WWDC centered on the forthcoming iPadOS. Specifically, the focus was on the anticipated improvements to multitasking capabilities within version 15.

iPadOS 15 and Multitasking

Version 15 of iPadOS is generating significant anticipation, largely due to the promised enhancements in how users manage multiple applications simultaneously. These new features are expected to substantially improve user workflow.

Google Workspace Now Universally Available

Google Workspace, formerly known as G Suite, has been made accessible to all users, as announced by the company today. This broad release signifies a major shift in Google’s productivity suite offerings.

Updates are rolling out across the entire Google product ecosystem – including Gmail, Calendar, Drive, Sheets, Slides, Meet, and Chat. While initial adjustments may feel unfamiliar, users are expected to quickly adapt to the new interface and functionalities.

Introducing Stripe Identity

Stripe has unveiled Stripe Identity, a new self-service tool designed to streamline user identity verification for businesses. The system handles sensitive customer data with robust encryption.

Utilizing computer vision and machine learning, Stripe Identity can accurately compare government-issued identification documents with live user selfies. This process ensures a secure and reliable verification method.

Developers interested in gaining access to Stripe Identity can request it through the official Stripe channels. Early adopters of the technology include prominent platforms such as Discord, Peerspace, and Shippo.

Startup Funding and Venture Capital Updates

Recent investment activity highlights innovation across several sectors. Several companies have secured funding to fuel growth and expand their services.

The Pill Club Secures Series B Extension

The Pill Club, a provider of birth control prescriptions and delivery, has announced a $41.9 million Series B extension. This funding round was led by Base 10.

Under the leadership of CEO Liz Meyerdirk, who assumed the role in January, the company has achieved record revenue. It has surpassed $100 million in annual recurring revenue for the first time in its four-year operational history.

Additional investors participating in this round include GV, Shasta Ventures, and prominent figures such as Uber CEO Dara Khosrowshahi and George Ruan of Honey.

Anrok Addresses SaaS Tax Challenges

Navigating tax regulations can be complex, particularly for Software-as-a-Service (SaaS) businesses. Anrok aims to simplify these processes.

The company recently raised $4.3 million to provide specialized tax assistance to modern companies. This support is designed to help them manage the intricacies of conducting business.

nSure AI Receives Seed Funding for Fraud Protection

nSure AI, based in Tel Aviv, has secured a $6.8 million seed round. The funding will be used to enhance its fraud detection capabilities.

The company focuses on protecting high-risk digital goods, including electronic gift cards, airline tickets, software, and games. Its AI-powered risk engine utilizes deep learning to accurately identify fraudulent transactions.

nSure AI’s technology leverages advanced techniques to minimize risk and safeguard digital commerce.

The Rise of Nubank: From Contrarian Hiring to a $30 Billion Valuation

Established in 2013 and headquartered in São Paulo, Brazil, Nubank has grown to serve over 34 million customers. This positions the company as the leading neobank within Latin America.

Journalist Marcella McCarthy engaged with CEO David Velez to explore his strategies for connecting with customers and navigating resistance from established financial institutions with close ties to regulatory bodies.

This is the first in a series of reports. McCarthy interviewed Velez regarding his initial fundraising endeavors. To provide a comprehensive view, she also consulted early investors from Sequoia and Kaszek Ventures, the largest venture fund in Latin America, to understand their rationale for investing before the product’s launch.

Doug Leone, a global managing partner at Sequoia, described his experience with Velez, stating, “Some individuals immediately demonstrate qualities that make you eager to collaborate with them.” He actively recruited Velez following the latter’s graduation from Stanford’s graduate program.

McCarthy also spoke with key members of Nubank’s original team to gain insight into their decision to join a startup facing significant challenges and a low probability of success.

Vitor Olivier, Nubank’s VP of operations and platforms, shared his experience: “I transitioned from a traditional banking role to accept a position at Nubank with a salary representing just one-fifth of my previous income, alongside an equity stake of approximately $5,000.”

“The financial aspect was questionable, therefore a strong conviction in the company’s potential for success and substantial growth was essential.”

Early Investment and Belief in the Vision

The decision to invest in Nubank prior to product development was a significant risk. However, investors recognized the potential for disruption in the Brazilian financial market.

• Sequoia and Kaszek Ventures saw an opportunity to address the shortcomings of traditional banking.
• The founding team’s commitment, despite financial sacrifices, signaled a strong belief in the company’s mission.
• David Velez’s leadership and vision were key factors in securing early funding.

(Extra Crunch is our subscription service designed to empower founders and startup teams. Sign up for membership here.)

Big Tech Inc. – Recent Developments

The United States Supreme Court has revisited the case concerning LinkedIn and a competing firm’s data collection practices. LinkedIn is seeking to prevent the scraping of publicly available user data, a practice that raises legal questions with potential implications for internet research and digital archiving.

Redwood Materials Expansion

Redwood Materials, a battery recycling company established by JB Straubel – previously the Chief Technology Officer at Tesla – has acquired a 100-acre property in Nevada. This land is situated close to the Gigafactory, a collaborative operation between Panasonic and Tesla located in Sparks.

The company’s objective is to establish a closed-loop supply chain. This involves gathering scrap materials from both consumer electronics manufacturers and battery cell producers.

These discarded materials undergo processing to recover valuable resources such as cobalt, nickel, and lithium. These extracted materials are then supplied back to Panasonic and other clients, reducing reliance on traditional mining operations.

E3 Gaming Event

The inaugural and concluding fully virtual E3 gaming event commenced today. Announcements were made by major players in the industry, including Microsoft, Square Enix, and Ubisoft.

Beats Studio Buds Review

A review of the Beats Studio Buds is now available. These earbuds present a compact, noise-canceling option, and are positioned as a more accessible alternative to Apple’s AirPods.

They offer a compelling combination of features and affordability for consumers seeking a wireless audio solution.

TechCrunch Experts: Growth Marketing

The launch of our Experts initiative has resulted in a notable rise in submissions of guest articles focused on growth marketing. Today’s featured piece is a guest contribution from Hunter Jensen, titled “The potential end of browser cookies may usher in a new era for digital marketing.”

Are you currently, or have you recently, collaborated with a growth marketer? We are interested in learning about your experiences.

Please complete the survey available here.

The data gathered from this survey will be instrumental in guiding our editorial direction as we explore topics like conversion optimization, social media marketing, and paid advertising strategies. Further information can be found at techcrunch.com/experts.

About the Experts Project

TechCrunch’s Experts project actively seeks contributions from professionals in various fields. This allows for diverse perspectives and in-depth analysis of emerging trends.

The goal is to provide readers with valuable insights directly from industry leaders.

Survey Details

• The survey focuses on experiences with growth marketers.
• Responses will influence future TechCrunch editorial content.
• Topics covered will include conversion optimization, social media, and paid ads.

Your feedback is highly valued and will help shape the future of TechCrunch’s coverage of growth marketing. Participation is encouraged to ensure a comprehensive understanding of the field.

TC Eventful

Seeking a venue to showcase your pre-Series A startup to a global audience? Consider applying for an exhibition space in Startup Alley at Disrupt 2021, TechCrunch’s premier virtual event scheduled for September 21-23.

Successful applicants will be provided with an opportunity to deliver their company pitch. Furthermore, selection may lead to participation in either the Startup Battlefield competition or the newly launched Startup Alley+ initiative.

Application Details

Availability is limited, with only a few remaining spots. Therefore, prompt submission of your application is strongly encouraged to avoid missing out on this valuable opportunity.

Don't delay – ensure your application is received as soon as possible, as spaces are filling up quickly!

TechCrunch Disrupt 2021 represents a significant platform for emerging companies.

The event offers exposure and potential investment opportunities.

• Event: TechCrunch Disrupt 2021
• Dates: September 21-23
• Location: Virtual
• Focus: Pre-Series A Startups

Participation in Startup Alley provides a unique platform for visibility.

The Startup Battlefield and Startup Alley+ programs offer additional avenues for recognition.