Monday, August 8, 2022

'Winter may be longer' because unicorns won't accept down rounds, says SoftBank leader

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By Christine Hall and Haje Jan Kamps

Monday, August 08, 2022

Hey, folks! A quick word on pitching. If you are starting your fundraising journey, apply to be part of the 2-minute life pitch practice on our TechCrunch Live series. If you've already raised some money, Haje is always on the lookout for pitch decks to feature as part of his Pitch Deck Teardown series on TechCrunch+. There's more info about how to submit your deck here. If you have more questions about either, email Haje, and he may be able to help! —Christine and Haje

PS. Both of us wrote guides to what we write about — here's Christine's and Haje's, respectively. Both documents include our email addresses so you can whisper sweet nothings (i.e., press releases) into our electronic ears.

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Image Credits: Kiyoshi Ota / Bloomberg / Getty Images

The TechCrunch Top 3

  • Brrr, it's cold in here: Manish writes that a "venture capital winter" will last a little longer, according to SoftBank's Masayoshi Son. It's a bit interesting, though, that a firm often known for pouring large amounts of capital into companies, cough, WeWork, cough, seems shocked that companies aren't willing to give up on the large valuations when they are out raising new funding. Meanwhile, Alex gives his take in a TechCrunch+ version looking at SoftBank's Vision Fund losses.
  • Hook, line, but hopefully no sinker: Twilio confirmed that hackers gained unauthorized access to corporate login credentials under the disguise of telling employees their passwords had expired, Carly reports.
  • Another big private equity deal: Vista Equity Partners is set to acquire automated tax compliance company Avalara in an all-cash deal valued at $8.4 billion, Paul writes. There have been some other large private equity deals this year, including another acquisition Vista made earlier this year of Citrix and Thoma Bravo's two of Anaplan and Ping Identity.

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Startups and VC

We had so many incredible things get published over the weekend, it's hard to choose what to feature in this here Ye Olde Lettre of Neues.

We loved today's Equity podcast, "How to lose money, SoftBank edition." Rebecca's transportation and mobility roundup, the Station, was particularly good too, breaking down what is happening in the land of micromobility and much more. (Also, her update from earlier in the week had a lot more Cybertruck earnings call info.)

The collapse of Three Arrows Capital and the counterparties wrapped in the crypto hedge fund's troubles have drawn questions about the soundness of the heady digital asset investment space. For the industry's survivors, watching their rivals fall to pieces overnight has been an alarming experience. Bitmain's co-founder welcomes crypto regulation to help stabilize things, Rita reports.

Mooooore:

3 ways to optimize SaaS sales in a downturn

“In a downturn, money saved is worth even more than money earned,” which means SaaS sales strategies should shift from driving growth to helping customers conserve their resources, writes Sahil Mansuri, CEO of Bravado.

“If you can frame your product as a way to boost revenue or cut costs, people will find a budget.”

Mansuri, who started out in software sales during the Great Recession, shares multiple strategies SaaS startups can use to “tailor your approach, show prospects unexpected opportunities and focus on the money.”

(TechCrunch+ is our membership program, which helps founders and startup teams get ahead. You can sign up here.)

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Big Tech Inc.

Google is taking Sonos to court again over patent infringement. Ivan writes that two new lawsuits "center around various patents involving keyword detection, charging using 'technologies invented by Google' and determining what speaker from a group should respond to the keyword." Both companies have already won against each other in previous lawsuits, so we'll see with whom the court sides with this time.

Get ready for more in-car advertising if you frequent Lyft. The ride-hailing company has created a new digital advertising business, called Lyft Media, that will put infotainment in cars and promises some of that ad revenue will go to drivers, Jaclyn reports.

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Friday, August 5, 2022

Amazon to acquire iRobot in $1.7B all-cash deal

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By Christine Hall

Friday, August 05, 2022

Happy Friday, y'all! Start your weekend off right with some delicious podcast morsels from Equity, Found and Chain Reaction. Also, time is ticking away on a $1,300 savings for TechCrunch Disrupt, so get on that before 11:59 p.m. PDT today. We hope you have a good weekend, see ya Monday!  — Christine

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Image Credits: Brian Heater

The TechCrunch Top 3

  • Double “ring” ceremony: Amazon and iRobot's relationship went to the next level today when the pair announced they were getting hitched, Brian reports. The robot vacuum mapping out your home now takes on a whole new meaning.
  • Double the layoffs: Natasha M noticed a trend among startup layoffs — that certain companies were making multiple announcements in quick succession — and got to work. She outlines what this means and why it's troubling. 
  • Double the entertainment: A pair-up is also happening in the streaming world. Fans of HBO Max and Discovery+ can cheer the merging of these services into one sometime next year, Ivan writes.

Cars Are Getting Smarter, but Is Safety Taking a Back Seat to Automation?

Sponsored by Cepton

Everyone's excited about the prospect of autonomous vehicles, but that excitement sometimes turns to frustration when automakers overpromise on autonomy and underdeliver on safety. What risk does this bring to the future of mobility?

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Startups and VC

  • Sparking interest in electricity: Beacon Power got a jolt of new capital to improve electricity access for sub-Saharan African cities, Tage writes.
  • Making up: Internet privacy company DuckDuckGo and Microsoft are on friendlier terms now following a policy change that now includes third-party Microsoft tracking scripts, Natasha L reports.
  • Billion-dollar milestone: Moving over to TechCrunch+, Alex examines Databricks' news that it has reached $1 billion in annual run rate and what that means for its valuation.
  • Magnetic attraction: A new round of capital has Zenno Astronautics blasting off with its technology aimed at moving spacecraft by using electromagnets, Aria writes.
  • It's getting personal: Kenya's shift to protecting personal data will have some startup implications. Annie outlines what those might be.
  • More out-of-this-world action: LiveEO took in some new funding to further develop its big data approach to making raw geospatial data captured by satellites more usable, Ingrid reports.

How to run growth marketing during a recession

Last month, U.S. Treasury Secretary Janet Yellen said the economy is "in a period of transition," on the grounds that "we have a very strong labor market. When you are creating almost 400,000 jobs a month, that is not a recession."

Today, we learned that the U.S. added 528,000 new jobs last month and the unemployment rate has fallen to 3.5%, but for many people in tech, this is a distinction without a difference: According to layoffs.fyi, 467 startups have let go of 64,518 employees so far in 2022.

Marketing can't cure everything that ails a company, but it is the easiest channel to make iterative changes that produce immediate results.

In his latest TechCrunch+ column, Jonathan Martinez says it's time to "re-forecast, re-prioritize and refine" strategies to move key growth metrics like ARPU and LTV.

Using multiple examples, he shares a few ways companies can project revenue using shorter time intervals, along with exercises to help fine-tune their marketing stack.

"If new channels and major experiments were in the picture, it's probably best to shelve those for when the markets recover," he advises.

(TechCrunch+ is our membership program, which helps founders and startup teams get ahead. You can sign up here.)

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How to run growth marketing during a recession image

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Big Tech Inc.

  • Elon Musk vs. Twitter, part 1,254: Twitter got a bit snarky, so says Ivan, in its response to Elon Musk's countersuit. It doesn't do it justice for me to lay it all out — it's better if you just take it all in yourself. Speaking of Twitter, Zack reports the social media giant fixed a pesky little security bug.
  • A seat at the table: India doesn't want to be left out of merger and acquisition deals, so it has crafted some antitrust proposals aimed at getting the country on par with other regions, Manish writes.
  • We're all “Super”: Well, under a hundred of us anyway. That's how many influencers are getting a sneak peek at Meta's new livestream platform, Super, Aisha reports.
  • Giddy up: Rebecca discusses five takeaways from Tesla's Cyber Roundup, also known as its annual shareholder meeting. Unfortunately, some of the attendees got blisters from their boots.

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Thursday, August 4, 2022

Kurtosis raises $20M Series A to give web3 developers 'a place to play around'

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By Christine Hall

Thursday, August 04, 2022

Haje and I are swapping places for the next two days while he gets some much-needed rest. While he's away, please enjoy his latest Pitch Deck Teardown on Glambook. In the meantime, TechCrunch Disrupt is coming closer: Meet the final five Disrupt Audience Choice roundtable winners, and if you are a student, enter our video competition for a chance to win a free pass.

And don’t forget, applications close tomorrow for Startup Battlefield 200! Apply today to join Startup Battlefield 200 for the chance to exhibit your startup for free at TechCrunch Disrupt this October and win the $100,000 equity-free prize. Applications close August 5. Be sure to get your applications in by tomorrow! Apply today.

See you tomorrow! — Christine

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Image Credits: Przemyslaw Klos / EyeEm / Getty Images

The TechCrunch Top 3

  • Tooling around: Two years ago, two former Palantir engineers started Kurtosis, a crypto-focused developer tool system, and have now raised $20 million in fresh funding to hire a team to get a new product out in the next year, Jacquelyn reports.
  • Strapping on some capital: Argentine fintech Geopagos leaves the bootstrap life behind as it takes in $35 million in new capital to help businesses launch their own financial services products, Mary Ann writes.
  • 'Snap'ping into some share buybacks: Moves by Snap and Airbnb to buy back shares amid slower growth has Alex raising his eyebrows and looking under the hood to see what's going on.

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Startups and VC

Lots of startup news again today, so let's dig in. First, Natasha M brings us some additional layoff news from On Deck, which is cutting another third of its staff after cutting a quarter a few months ago. For those of you who can add fractions, that's a lot, right?

We enjoyed reading Becca's investor survey story, where she interviewed six first-time fund managers about their approach to weathering the downturn.

Also, buy now, pay later is still more prevalent in the world of consumers (see Anita's funding story on Halliday), but businesses want in on the fun, too. That's where Kontempo comes in with $30 million and its approach to enabling sales teams to approve credit, Kyle reports.

From NDA to LOI: What really happens when your startup is being acquired?

Last week, VP and managing director of Dell Technologies Capital Yair Snir shared an article explaining why founders should plan on getting acquired, particularly since their odds of going public are so long.

In a follow-up, he takes readers inside the postacquisition integration period/process:

  • The shopping sprint
  • The road to an LOI
  • Bringing in bankers
  • Diving into due diligence
  • Defining "day one"
  • You've been acquired!

“While IPOs may get more headlines, a well-timed, well-planned acquisition can mean even larger opportunities for you, your team and the technologies you've built,” says Snir.

(TechCrunch+ is our membership program, which helps founders and startup teams get ahead. You can sign up here.)

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From NDA to LOI: What really happens when your startup is being acquired? image

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Big Tech Inc.

When it comes to cryptocurrency, BlackRock is now saying, "Why beat them when you can join them?" Anita writes about the asset managing giant joining forces with Coinbase to provide its clients with access to crypto, initially Bitcoin. And speaking of Coinbase, Jacquelyn and Alex write for TechCrunch+ on why that partnership, and others Coinbase has, is delighting investors.

In the realm of social media, we enjoyed Amanda's story where she spoke with Patreon CEO Jack Conte on why Instagram and Facebook are on his list, and not in a good way. And Aisha tells us what's up with some new Clubhouse features.

Read more stories on TechCrunch.com

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Mark Wahlberg wants to take on the longevity-startup crowd with an affordable gym concept

Plus more of TechCrunch's top stories this weekend ...