Author: azeeadmin

10 Jul 2020

Five reasons to attend TC Early Stage online

TC Early Stage on July 21 and 22 will virtually bring together 50+ experts across startup core competencies to give you the tools you’ll need to be able to keep building your business and protect your assets. If you’re on the fence about attending, here are just five reasons why you should get your tickets today:

1. Learn how to fundraise effectively

Top venture capitalists from Greylock, General Catalyst, Accel, Plexo Capital and more will share their secrets on how to raise funds for your company. For example if you need to optimize your pitchdeck or deciding whether to bootstrap or pitfalls to avoid when pitching or even how to get your company acquired this is the place where you will be able to learn it all from seed to IPO.

2. Focus on growing your bottom line

In order to grow, you have to build and engage your audience but how do you stand out in the crowd? What’s the secret sauce for growth? At TC Early Stage, we’ll have several marketing mavens on tap to provide the tips and tricks you’ll need to develop your brand’s personality and teach you how to get in front of new clients.

3. Operate at maximum efficiency

To make sure the machine is operating at its best, all of the pieces need to work together effectively. As you are hiring employees, developing and securing your company’s tech stack, building out your board, or structuring your term sheets, these workshops can help you to fine tune all of the functional puzzle pieces of your company that make it run.

4. Expand your network

Not only will you have the experts to meet but you’ll also have hundreds of other founders who are at your disposal to share best practices, meet other investors and service providers and expand your social graph. It’s the icing on the cake to augment your entire TC Early Stage experience. Plus you’ll be able to kick-start your networking with other attendees before the show even begins!

5. Spaces are limited

We’re keeping these sessions as intimate as possible so you have opportunities to engage with speakers and get the most out of each workshop. Some sessions have already reached capacity, so you’ll want to act fast and register now. All of the sessions will be exclusively available for TC Early Stage attendees to view after the event concludes so if you miss one, you’ll still be able to watch the session on demand. Get your tickets now and secure your seat at TC Early Stage online.

10 Jul 2020

Rivian raises $2.5 billion as it pushes to bring its electric RT1 pickup, R1S SUV to market

Rivian, the electric vehicle company aiming to become the first to bring an EV pickup truck to market, has raised $2.5 billion in a round led by funds and accounts advised by T. Rowe Price Associates Inc.

New investors Soros Fund Management LLC, Coatue, Fidelity Management and Research Company and Baron Capital Group also participated. Existing shareholders Amazon and funds managed by BlackRock also joined the round. No new board seats have been added.

This is by far the largest round Rivian has raised to date as the company and its founder and CEO R.J. Scaringe eschew public markets and have instead turned to strategic funds and other private investors. The round follows an active 2019 for the company that brought in $2.85 billion in funds through a series of investments. Rivian essentially hit that same mark in one fell swoop this time around.

Rivian announced in February 2019 a $700 million funding round led by Amazon. More deals and investments would follow, including a $500 million investment from Ford — along with a promise to collaborate on a future EV program — a $350 million investment by Cox Automotive in September. The company closed the year with an announcement that it had raised $1.3 billion round led by funds and accounts advised by T. Rowe Price Associates, Inc. with additional participation from Amazon, Ford Motor Company and funds managed by BlackRock.

The company also announced in 2019 was developing an electric delivery van for Amazon using its skateboard platform. Amazon 100,000 of these vans with deliveries starting in 2021.

The company has a capitally intensive journey awaiting them for the remainder of 2020 and far into next year. Rivian is preparing its factory in Normal, Indiana to assembly its R1T electric pickup truck and the R1S SUV as well as begin to fulfill its order with Amazon to deliver electric vans.

All three of these products are expected to come to market — or directly to Amazon, for the van order — in 2021. The R1T and R1S were supposed to go into production in 2020.

“We are focused on the launch of our R1T, R1S and Amazon delivery vehicles. With all three launches occurring in 2021, our teams are working hard to ensure our vehicles, supply chain and production systems are ready for a robust production ramp up. We are grateful for the strong investor support that helps enable us to focus on execution of our products,” Scaringe said in a statement.

 

10 Jul 2020

Silicon Valley is built on immigrant innovation

Hello and welcome back to Equity, TechCrunch’s venture capital-focused podcast, where we unpack the numbers behind the headlines.

We wound up having more to talk about than we had time for but we packed as much as we could into 34 minutes. So, climb aboard with Danny, Natasha, and myself for another episode of Equity.

Before we get into topics, a reminder that if you are signing up for Extra Crunch and want to save some money, the code “equity” is your friend. Alright, let’s get into it:

Whew! Past all that we had some fun, and, hopefully, were of some use. Hugs and chat Monday!

Equity drops every Monday at 7:00 a.m. PT and Friday at 6:00 a.m. PT, so subscribe to us on Apple PodcastsOvercastSpotify and all the casts.

10 Jul 2020

NASA signs agreement with Japan to cooperate across Space Station, Artemis and Lunar Gateway projects

NASA has signed a new agreement with Japan that lays out plans for the two nations to cooperate on the International Space Station (continuing existing partnership between the countries there) as well as on NASA’s Artemis program, which includes missions in lunar space and to the lunar surface.

NASA Administrator Jim Bridenstine signed the agreement with Government of Japan Minister of Education, Culture, Sports, Science and Technology Koichi Hagiuda on July 10. It’s a Joint Exploration Decoration of Intent (JEDI), which essentially commits the two countries to laying the groundwork for more concrete plans about how the two nations will work together on projects that will extend all the way to include both robotic and human exploration of the Moon .

Japan was one of the earliest countries to express their intent to participate as an international partner in NASA’s Lunar Gateway project, all the way back in October 2019. Since then, a number of countries and agencies have expressed similar support, including Canada, which will contribute by building a third version of its Canadarm, the robotic manipulator that has been used on the Space Shuttle and the International Space Station, and the European Space Agency.

This new agreement formalizes that arrangement, and from here you can expect both parties to begin to detail in more specificity what kinds of projects they’ll collaborate on. Japan has plans to launch a robotic space probe mission to the moons of Mars and return samples from Phobos, its largest natural satellite, with a launch schedule for 2024, and it has launched a lunar orbiter exploration spacecraft called SELENE, and is planning a lunar lander mission dubbed the ‘Smart Lander for Investigating Moon (SLIM) for 2022 that will be its first lunar surface mission.

10 Jul 2020

A glint of hope for India’s food delivery market as Zomato projects monthly cash burn of less than $1M

Food delivery startups in India have been struggling to make financial sense for years. They have each lost as much as $50 million a month to win and sustain customers by offering discounts. And unlike some other markets, food delivery startups have been severely hit by the coronavirus pandemic.

But Zomato, one of the two market leading startups operating in the space, today offered a rare sign of hope for the market after it said it had severely cut its cash-burn as it looks to become profitable.

The Gurgaon-headquartered firm said it estimates it would lose less than $1 million in July, the lowest in years for the 12-year-old firm that acquired Uber Eats’ India business earlier this year.

Zomato also shared its performance for the financial year that ended on March 31, 2020, and the quarter that ended on June 30.

In FY 20, the startup said its revenue surged 105% to $394 million compared to the year before while its losses at EBIDTA-level — a popular metric used by businesses that does not account for interest, taxes, depreciation, and amortization — ballooned to $293 million, up from $277 million the year before.

But the startup said the coronavirus pandemic, which has significantly reduced the number of orders customers place on the platform, has also helped it to improve its unit economics.

In the quarter that ended last month, Zomato clocked $41 million in revenue at an EBIDTA-level loss of $12 million. In the month of June alone, the startup’s revenue stood at $17 million at an EBIDTA-loss of $1.5 million.

As India eases its nationwide lockdown, which it enforced in late March, more workers are moving back to the larger cities. Zomato said this has helped the firm increase the number of orders on its platform. The startup said it expects its revenue generation this month to be at 60% of the levels before coronavirus wrought havoc to the industry.

In the quarter that ended in June this year, each order on Zomato earned it — made a contribution margin of — Rs 27 (36 cents), compared to loss of Rs 47 (62 cents) a order during the same period last year, claimed Deepinder Goyal, co-founder and chief executive of Zomato.

Goyal cautioned, however, that the current contribution margin is not sustainable and he expects it to go down to Rs 15 to 20 per order over time.

Zomato, which eliminated its workforce by 13% in May and slashed salary across the board, said it had reinstated existing employees back to their earlier pay level and its projection takes that into account.

The firm competes with Prosus Ventures-backed Swiggy, which has also eliminated even more jobs in recent months and made other efforts to improve its financials. The two firms, both of which together have nearly $2.5 billion, are struggling to find new investors as many VC and PE firms lose appetite for food delivery in India.

More to follow…

10 Jul 2020

COVID-19 pivot: Travel unicorn Klook sees jump in staycations

Spring 2020 was gloomy for Klook. As countries closed their borders and went into complete or partial lockdown, the SoftBank-backed travel platform saw its revenue plummet by as much as 90% through March and April. The World Travel and Tourism Council said in April that the coronavirus could put up to 100 million jobs in the global travel and tourism at risk.

But in the dark times, opportunities were also bubbling up.

Six-year-old Klook enables travelers, primarily from Asia, to discover and book overseas experiences ranging from Napa Valley wine tastings to staying with a farming family in Cambodia — a bit like Airbnb Experiences. It then takes a cut from each transaction that happens between the customer and activity vendor.

Before COVID-19, the startup, which crossed the $1 billion valuation mark back in 2018, was seeing 30 million monthly user sessions a month; by April, the figure shrank to 5 million. The constraints on people’s movement across the world, which is the foundation of its business, forced Klook to quickly rethink product offerings.

“At the end of the day, we are in the business of fun things to do. There are things to do at home, as well as local things to do when people could travel,” co-founder and chief operating officer Eric Gnock Fah told TechCrunch over a phone interview. “Now [the pandemic] is giving us an opportunity to add a new aspect to it.”

Staycation

Cooped up at home, people around the world turned to cooking, handcraft and other domestic projects as an outlet for entertainment and creativity. Klook responded to the demand by offering do-it-yourself kits for making bubble tea, macarons, candles and more — and delivering the material to people’s doorsteps. For people who were still eager to see the world, Klook partnered with landmark sites worldwide on online virtual tours, amassing close to 660,000 views in its first two livestreamed experiences.

10 Jul 2020

California reportedly launches antitrust investigation into Google

According to a report in Politico, California has become the 49th state to launch an antitrust investigation into Google.

California and Alabama were the only states that did not participate in an antitrust investigation by 48 states, Puerto Rico and the District of Columbia, that began in September and is focused on Google’s dominance in online advertising and search.

It is still unclear what aspects of Google’s business the reported California investigation will focus on.

The Justice Department is also currently conducing its own antitrust investigation into Google, and working with the multi-state probe. It is expected that the investigations will result in lawsuits against Google.

Google is among several big tech companies, including Facebook, Microsoft, Apple and Amazon, that are currently being scrutinized by state and federal legislators and agencies, including the Federal Trade Commission, over alleged antitrust issues.

In 2011, California, four other states (Texas, New York, Oklahoma and Ohio) and the Federal Trade Commission launched an antitrust investigation into allegations that Google unfairly favored its own products over competitors in search results. That investigation was closed in 2013.

TechCrunch has contacted Google and the office of California Attorney General Xavier Becerra for comment.

 

10 Jul 2020

California reportedly launches antitrust investigation into Google

According to a report in Politico, California has become the 49th state to launch an antitrust investigation into Google.

California and Alabama were the only states that did not participate in an antitrust investigation by 48 states, Puerto Rico and the District of Columbia, that began in September and is focused on Google’s dominance in online advertising and search.

It is still unclear what aspects of Google’s business the reported California investigation will focus on.

The Justice Department is also currently conducing its own antitrust investigation into Google, and working with the multi-state probe. It is expected that the investigations will result in lawsuits against Google.

Google is among several big tech companies, including Facebook, Microsoft, Apple and Amazon, that are currently being scrutinized by state and federal legislators and agencies, including the Federal Trade Commission, over alleged antitrust issues.

In 2011, California, four other states (Texas, New York, Oklahoma and Ohio) and the Federal Trade Commission launched an antitrust investigation into allegations that Google unfairly favored its own products over competitors in search results. That investigation was closed in 2013.

TechCrunch has contacted Google and the office of California Attorney General Xavier Becerra for comment.

 

10 Jul 2020

U.S. government may finalize ban on federal contractors using equipment from Huawei this week

The Trump administration is set to finalize regulations this week that ban the United States government from working with contractors who use technology from five Chinese companies: Huawei, ZTE, Hikvision, Dahua and Hytera Communications, according to a Reuters report.

The ban was first introduced as a provision in the 2019 National Defense Authorization Act that prevents government agencies from signing contracts with companies that use equipment, services and systems from Huawei, ZTE, Hytera, Hikvision and Dahua, or any of their subsidiaries and affiliates, citing national security concerns.

Contractors were given until August 13, 2020 to comply, but immediately began voicing concerns over the ambiguity of the law.

More recently, the National Defense Industrial Association, a trade group, asked the government to extend the deadline because it said many contractors are currently dealing with the economic impact of the COVID-19 pandemic, reported Defense News.

Another challenge for federal contractors is that the companies on the blacklist are global market leaders in their respective categories, making it harder to find alternatives. For example, Huawei and ZTE are two of the largest telecom equipment providers in the world; Dahua and Hikvision are two of the biggest providers of surveillance equipment and cameras; and Hytera is a market leader for two-way radios.

The ban is one of many entanglements Huawei has had with the U.S. government since it was first identified as a national security threat, along with ZTE, in a 2012 Congressional report.

In May 2019, Huawei filed a legal motion against the provision in the National Defense Authorization Act, with the company’s chief legal officer stating that “politicians in the U.S. are using the strength of an entire nation to come after a private company.”

The United States, however, is not the only country with national security concerns about Huawei. On Thursday, for example, Reuters reported that Telecom Italia (TIM) decided to exclude Huawei from its tender for 5G equipment in Italy and Brazil, as the Italian government deliberates whether to bar Huawei’s tech from the country’s 5G network. Huawei told Reuters that “the security and development of digital Italy should be based on an approach grounded in facts and not baseless allegations.”

The United Kingdom is also reportedly considering a similar ban on Huawei in its 5G network.

10 Jul 2020

Whether or not the Trump administration bans TikTok, it’s already helping Facebook

On Tuesday, U.S. Secretary of State Mike Pompeo said that the U.S. is “looking at” banning Chinese social media apps, including the Chinese-owned company TikTok, comparing it to other Chinese companies like Huawei and ZTE that have been deemed national security threats by the current administration. “With respect to Chinese apps on people’s cell phones, I can assure you that the United States will get this one right, too,” Pompeo said.

The fear is the app could be used to surveil or influence Americans, or else that TikTok parent ByteDance could be made to provide the Chinese government with TikTok’s data on its U.S.-based users — of which there are at least 165 million. India, calling TikTok a “threat to sovereignty and integrity,” decided to ban the app late last week, saying it had similar concerns.

Though security experts disagree over how concerned the U.S. should be about TikTok, the move would would undoubtedly hobble what has become one of the fastest-growing social media businesses on the planet, with 800 million monthly active users worldwide, half of whom are under age 24. In the meantime, the mere suggestion of a ban is proving a boon to TikTok’s biggest rival, Facebook, at a time when the U.S. company faces growing scrutiny over its decision not to take action on multiple controversial posts from Donald Trump.

The threat is already prompting some to speculate that Pompeo’s warning was politically motivated. In a new interview with Axios, for example, L.A.-based talent manager John Shahidi, observes that TikTok users have said they were partially responsible for a Trump rally in Oklahoma two weeks ago that failed to deliver huge crowds (yet still “likely contributed” to record number of new coronavirus cases, according to the Tulsa City-County Health Department Director).

For his part Shahidi — whose internet talent management company currently oversees nine “channels” on TikTok that collectively enjoy than 100 million followers — doesn’t doubt the two are related. “I’m on TikTok a lot,” Shahidi says of the short-form video app, and “there are no Trump supporters, no official Trump account, no one who is from his team is on TikTok.” Is it “just coincidence that we’re heading toward [the election], and the one app that doesn’t support him — with everything happening in the world — we’re going to talk about taking down TikTok?” he asks.

Already, TikTok influencers are more actively promoting their other social media channels to their followers as a kind of contingency plan. Soon to join them is Pierson Wodzynski, a 21-year-old who ran track and field in high school and was taking a break from studying communications in college when in January, a friend invited her to participate in a show on the YouTube channel AwesomenessTV, which has more than 8 million subscribers.

The show’s set-up centered around nabbing a date with social media star Brent Rivera, who has 13 million YouTube subscribers, 19.8 million Instagram followers, and more than 30 million TikTok fans. But afterward, Wodzynski found herself with the L.A.-based talent agency that Rivera cofounded two years ago called Amp Studios and in recent months, aided by special guest appearances by Rivera, she has built a substantial fanbase herself, with 500,000 subscribers on YouTube, 455,000 Instagram followers, and a stunning 4.1 million fans on TikTok.

Wodzynski says her followers seem to like the comedy bits she develops, such a recent series on the “things that go wrong when you’re running late,” and another on the “Appdashians,” wherein each character is a different social media company. (Notably, Facebook is the old grandmother character.)  Says Wodzynski, who comes across as both confident and affable, “I’m so unbelievably myself [on social media], it’s crazy.”

She is also concerned about the TikTok’s future in the U.S. Partly, she simply enjoys it. (“It’s just a great app to escape, and it’s so different, with a vast music library and editing software that other apps don’t have.”) But it’s also the source of most of her income, she says, explaining that she helps promote the brands with which Amp Studios works, including Chipotle. (“A lot of times it’s me dancing to a popular song and holding the product, or developing a creative advertisement so it looks enjoyable.”)

Wodzynski says she is “ready for anything,” and that if the U.S. bans the platform, she trusts it will do so for legitimate reasons. “There are many other roads to take your content,”  she says. The importance of diversifying across social platforms is something that Max Levine, who cofounded Amp with Rivera, gives to all of the firm’s talent, he says.

“‘Diversify’ is a good mantra for life,” says Levine, who claims he learned this lesson early when Vine — the once-popular video app that Twitter acquired, then subsequently shut down — “fizzled and died.” Levine points to early Vine stars like Logan Paul and Rivera himself who “were smart and focused on building platforms on Instagram and YouTube” and who not only emerged unscathed when Vine was shuttered but whose popularity ballooned afterward.

He says that Amp’s clients have always “promoted other socials on TikTok,” to steer them to YouTube videos, for example, and that he’d prefer that they not start being more aggressive on this front. “They’ve been doing it naturally over time. I think if every other TikTok mentions [a call to action], it could be a lot” and “not ideal.”

Still, a few minutes on TikTok underscores that growing percentage of its users has begun talking about Instagram, which requires far less effort than does developing a fan-pleasing YouTube video. With the threat of a ban in the air, Wodzynski — who says she saw her view count go down with India’s recent ban of TikTok — isn’t immune to the impulse. “Actually, later today I will be posting something on Tiktok about this whole banning thing and reminding people that if they want to follow my Instagram and Youtube that ‘this is what I post there,'” she says. “I do that pretty regularly, but I’m gong to step it up in more in the coming days and weeks.”

In the meantime, Facebook is already putting together its newest playbook. Just yesterday, in India, Instagram rolled out a video-sharing feature called Reels to fill the void left by TikTok that sounds very much like a clone. The in-app tool invites users to record 15-second videos set to music and audio, then upload them to their stories. As CNN notes, Facebook began testing the feature in Brazil last November. The feature is now available in France and Germany, too.

India not only indefinitely banned Tiktok but 58 other apps and services provided by Chinese-based firms, including Tencent’s WeChat. But the country’s government enjoys a good relationship with Facebook, which recently nabbed a 10% stake in local telecom giant Jio Platforms.

In fact, in February, before a trip to India, Donald Trump talked about Facebook and ranking that both he and India’s Prime Minister Narendra Modi enjoy on the platform. He said Modi is “number two” on Facebook in terms of followers, and that he is number one as told to him directly by Facebook CEO Mark Zuckerberg.

As reported in the Economic Times, Trump said at the time: “I’m going to India next week, and we’re talking about — you know, they have 1.5 billion people. And Prime Minister Modi is number two on Facebook, number two. Think of that. You know who number one is? Trump. You believe that? Number one. I just found out.”