Author: azeeadmin

We’re excited to announce that we’ve added Extra Crunch support in Ireland, Portugal and Greece. That adds to our existing support in Europe as we are already in Austria, Belgium, France, Germany, Italy, the Netherlands, Poland, Romania, Spain and the U.K.

Portugal’s 10 million citizens are no strangers to startup investment, with the country totting up 813 to date, according to Crunchbase. Notably, of that total, 113 have been announced in 2020 thus far.

That means that in 2020, despite COVID-19 and its ensuing economic impacts, Portugal is on track to best its 2019 startup round total of 206. And it’s not just small companies that Portugal is building. OutSystems, now based in Boston and worth north of $1 billion, was founded in the country, for example. As Europe recovers from COVID-19, perhaps Portugal can take a larger share of the continent’s startup activity. It appears to have the momentum it would need to do so.

There’s been data from the last few years to indicate that the Greek startup scene is also growing nicely. With larger seed deals and more deal volume, Greece has seen its startups raise more money, more quickly in recent years. It appears that 2020 is no exception to the trend. With 43 known startup rounds in the country so far in 2020, Greece is set to storm its 2019 total of 59. Indeed, the country could nearly double the number of startup deals it saw in 2019 during a pandemic-disrupted year.

In the past 18 months, the country has seen around 38% of its all-time total known startup deals. Surely that means the country is at a local maxima when it comes to startup activity.

Ireland is a startup powerhouse. Crunchbase has 2,327 known rounds for companies based in the country, including 539 in 2019 and 335 so far this year. So like our other two countries, we can spot acceleration in deal volume. Irish startups raised over $5 billion in 2020 so far, according to Crunchbase. There are going to be more names bubbling up from the island that are worth getting to know.

As a nation, Ireland has a history of startup successes. Software company FINEOS was founded in Ireland back in 1993, and today it’s a public company worth more than a billion dollars. Havok, another software company from the country sold to Microsoft in 2015. And Ireland has other neat tech startups that are still coming up, like Farmflo, to pick one from the list we made this morning.

We’re excited to welcome readers from Greece, Portugal and Ireland to our growing community of startups, investors and entrepreneurs.

You can sign up for Extra Crunch here.

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BMW today announced a number of updates to its in-car software experience during a VR press event, complete with a virtual drive through Munich to show off some of these features. These new updates will come to most recent BMWs that support the company’s Operating System 7 later this year — and new cars will already have them built-in.

The company is able to launch these regular updates because it is now able to not just update the car’s infotainment system but virtually every line of code that’s deployed to the various compute systems that make up a modern vehicle. And because of this, the company is now also able to bring a couple of features to market that it has long talked about.

One of those features — and maybe the key announcement from today’s event — are updates to BMW program for subscribing to specific hardware features that are may already be built into your car, like heated seats or advanced driver assistance systems, but that you didn’t activate when you bought the car. BMW has talked about this for a while, but it is now making this a reality. That means if you didn’t buy the heated seats and steering wheel, for example, your new BMW may now offer you a free three-month trial and you can then essentially buy a subscription for this feature for a set amount of time.

Image Credits: BMW

“We offer maximum flexibility and peace of mind to our customers when it comes to choosing and using their optional equipment in their BMWs, whether this BMW is new or used,” a company spokesperson said during today’s press event. “So flexible offers, immediate availability, simpler booking and easy usability for choice, at any time, when it comes to your optional equipment. We already started connectivity over 20 years ago and since 2014, we are online with our Connected Drive Store, where digital services can already be booked.”

Those were very much infotainment features, though. Now, BMW will let you enable vehicle functions and optional equipment on demand and over the air. The company started offering some features like active cruise control with stop and go functionality, a high beam assistant and access to the BMW IconicSounds Sport. The carmaker will add new features to this line-up over time.

Surprisingly, it’s often easier and cheaper for car manufacturers to build some hardware into cars, even if it is not activated, simply because it removes complexity from the production process. A lot of the features that BMW is talking about consist of a combination of software and hardware, though.

What’s new here is the ability to only subscribe to some features for a short time. “In the near future, we will not only be able to add more functions here, but we will also be able to add even more flexibility for our customers with temporary bookings so booking of options for three years, for one year, or even shorter periods of time, like a few months,” a spokesperson said.

Image Credits: BMW

The company also notes that this will give somebody who buys a used car a lot more flexibility, too. It’s worth noting that Apple CarPlay support was also originally a subscription feature in new BMWs, costing $80 a year. The company’s customers were not very happy about this, though, and the company reversed that decision last December. That really felt like nickel-and-diming drivers, though, since none of BMW’s competitors charged for this. It’ll be interesting to see how drivers will react to additional subscription services, but the focus now is more on convenience features that would usually be an option when you buy a new car, so my guess is that this will be less of an issue.

Among the other new and updated digital services the company showcased today is support for Apple’s new ‘Car Keys,’ which BMW brands as the BMW Digital Key, as well as an updated BMW Personal Assistant. Some of these new Assistant features are more cosmetic and about how it is showcased on the in-car display. But one nifty new Assistant feature here, for example, is a kind of IFTTT for your car, where you can easily program it to automatically roll down your windows when you enter your company’s parking garage, for example, so that you can easily scan your badge to open the boom gate.

Image Credits: BMW

Other updates include the new BMW Maps, the company’s built-in GPS system, which the company described as a ‘major leap.’ This cloud-based service can now find routes faster, has more granular traffic data and also includes the ability to find parking spaces for you — and that parking feature itself is based on a lot of work the company is doing in aggregating sensor data from across its fleet, which already covers and maps close to 99% of the German highway system once a day in HD.

Image Credits: BMW

Talking about maps, the company, which is still in the middle of the roll-out of its hybrid-electric vehicles, BMW also today announced that its hybrid fleet will make it easier for drivers to find charging stations and will automatically switch to electric driving when they enter low-emission zones in 80 European cities, with support for additional cities coming over time.

“Digital technologies belong to the core of BMW – because hardware and software are of
equal importance for premium cars,” said Oliver Zipse, the Chairman of the Board of Management of BMW. “Our mission is to integrate advanced digital technologies with highest product excellence to enhance our customers’ experience and driving pleasure even more.”

Ahead of its expected IPO pricing later today, SoftBank -backed insurtech startup Lemonade has raised its expected price range. After initially targeting $23 to $26 per share in its debut, Lemonade now intends to sell its equity for $26 to $28 per share.

The Exchange is a daily look at startups and the private markets for Extra Crunch subscribers; use code EXCHANGE to get full access and take 25% off your subscription.

The new range boosts Lemonade’s expected value, a boon for insurtech startups like Root, Kin, MetroMile, Hippo and others. Had Lemonade been forced to reduce its pricing, the valuations of its contemporaries could have come under pressure when they went to raise more capital. But with Lemonade noting that the market will bear a higher price for its equity, it’s a good day for startups looking to rebuild insurance products in a digital-first manner.

This morning, let’s work out the Lemonade’s new valuation range, compare it to the company’s final private valuation and figure out if we can understand why the stock market may support the company at its new price. After that, we’ll share a few notes from folks about the IPO and how they think it might go, just for fun.

Upward

Lemonade intends on selling 11 million shares as before, so the company is not targeting a larger bloc of shares to disburse. At its new price range, Lemonade will sell shares worth between $286 million and $308 million, a few dozen million more at the top end of its new range than it had anticipated with its first IPO pricing interval ($253 million and $286 million).

The company has two valuation ranges: one without the 1.65 million shares its underwriters may purchase at its IPO price if they choose, and one including those shares. Without the extra equity, Lemonade is aiming at a $1.43 billion to $1.54 billion valuation; including the extra equity, Lemonade is worth $1.47 billion to $1.58 billion.

A few months back, Google announced plans to reopen some U.S. offices after the July 4th holiday. But the best laid plans, and all of that. Things have obviously not been going great in terms of the United States’ battle with COVID-19, and Google once again finds itself proceeding on the side of caution.

As was first reported by Bloomberg, Google has since confirmed with TechCrunch that it will be pushing back reopening at least until September 7, after the Labor Day holiday in the States. Along with other tech giants like Facebook, Google has noted that it will continue to offer employees the option of working from home through the reminder of the year.

It’s a smart choice, as many no doubt still feel uncomfortable returning to an office situation — not to mention questions around the public transit that may use to get there. Twitter, meanwhile, made waves in May by announcing that employees would be allowed to indefinitely work remotely.

Yesterday, the United States reported more than 47,000 new COVID-19 cases, marking the biggest single day spike since the beginning of the pandemic. Arizona, Florida and Texas have all become epicenters as many other states have seen their own increases in recent weeks. Reopening plans have been put on hold or rolled back in many locales, amid increased concern over the virus’s continued spread. It seems likely other big tech companies will delay their own reopening plans. In most cases, shifting back to the office simply isn’t worth the risk. 

Tesla hits a financial milestone, Discord is now valued at $3.5 billion and we unpack the phenomenon.

Here’s your Daily Crunch for July 1, 2020.

1. Tesla blows past Toyota to become most valuable automaker in the world

In 10 years, Tesla has gone from public market newbie to the most valuable automaker in the world. The electric automaker had long since passed the valuations of Ford and GM — and in January, it became the most valuable U.S. automaker ever when its market capitalization hit $81.39 billion.

Still, a few automakers remained ahead of Tesla globally, until today. Tesla shares popped this morning, and the company’s market cap now stands at nearly $208 billion, surpassing Toyota.

2. Discord now has a $3.5B valuation and $100M for a sales pitch lighter on the gaming

“It turns out that, for a lot of you, it wasn’t just about video games anymore,” wrote co-founders Jason Citron and Stanislav Vishnevskiy in a blog post. Discord, they said, is “a place to have genuine conversations and spend quality time with people, whether catching up, learning something or sharing ideas.”

3. What .fm means for Silicon Valley

In 36 hours, a diverse group of young entrepreneurs and technologists used a mysterious meme to raise more than $200,000 for three charities supporting people of color and the LGBTQ community: The Okra Project, The Innocence Project and The Loveland Foundation.

4. Facebook bans ‘violent network’ of far-right boogaloo accounts

Facebook took action to remove a network of accounts Tuesday related to the “boogaloo” movement, a firearm-obsessed anti-government ideology that focuses on preparing for and potentially inciting a U.S. civil war.

5. Dear Sophie: Is immigration happening? Who can I hire?

Lawyer Sophie Alcorn lays out the current immigration landscape for a Bay Area recruiter. (Extra Crunch membership required.)

6. YouTube TV hikes price to $64.99 per month following new channel additions

The bump in pricing is now one of several price increases YouTube TV has seen since its debut, due to the rising costs of programming for the streaming TV service — with the cord cutting trend now accelerating due to the pandemic.

7. NASA pays out $51 million to small businesses with big ideas

NASA has announced its latest batch of small business grants, providing more than 300 businesses a total of $51 million in crucial early-stage funding. These “phase I” projects receive up to $125,000 to help bring new technologies to market.

The Daily Crunch is TechCrunch’s roundup of our biggest and most important stories. If you’d like to get this delivered to your inbox every day at around 9am Pacific, you can subscribe here.

Jüsto, the Mexico City-based delivery only grocery store chain, has raised another $10 million in financing as it looks to expand its now pandemically-relevant business of “dark stores” across the country.

The COVID-19 pandemic is changing consumer habits and increasing the use of delivery services across the world, and consumers n Mexico are no different.

A recent Nielsen study cited by the company found that 11 percent of respondents had purchased fresh food online for the first time in 2020, as lockdowns in cities across the world restricted movement for everyone but essential workers — with 70 percent of those surveyed saying they’d do it again within the year.

“Despite Covid-19 dramatically accelerating the curve of adoption of e-commerce, the penetration rate of e-grocers is still less than 1 percent,” in Latin America, according to Jüsto founder and chief executive, Ricardo Weder, in a statement. “That means there’s an enormous opportunity—and all the right conditions—to disrupt the grocery industry in Latin America.”

With the new bridge round Jüsto’s financing has hit just over $20 million in less than a year. Part of that can be attributed to the pedigree of the company’s founder. Weder was instrumental to Cabify’s growth in Latin America, according to Rodolfo Gonzalez, a partner at Foundation Capital, who led the firm’s investments into Jüsto. And Gonzalez also saw the opportunity in the company’s business model.

“We’ve seen that type of model of warehouse and D2C for groceries be very successful in other geographies,” Gonzalez told Crunchbase, when Jüsto announced its previous $10 million seed round. “But that model didn’t quite exist in Mexico yet.”

Other investors in Jüsto’s round include Mountain Nazca, FEMSA Ventures, Quiet Capital, and 500 Startups.

The Mexican company prides itself on selling both local and international brands in categories including: fresh produce, dry goods, personal hygiene and beauty care, home and cleaning goods, beverages, organic food, and pet supplies.

“We have these darkstores and hold the delivery,” says Manolo Fernandez, a spokesperson and member of Jüsto’s founding team. “At traditional supermarkets the fill rates are lower and the product is less fresh. One of our core tenets is to reduce waste. We don’t have fruits and vegetables sitting outside in the store.”

Jüsto also claims that it’s prices come in at roughly equivalent to those of a regular supermarket. The company has delivery options ranging from express delivery, same day, and next day delivery.

The company isn’t the first startup to look at unused real estate and internet shopping habits and see an opportunity. Darkstore is a company that has raised nearly $30 million to convert empty space into third-party fulfillment centers. Istanbul’s Getir, which recently raised $25 million from Sequoia’s Michael Moritz, is doing the same thing. And Samokat has adopted a similar strategy in Russia, promising over 3,000 SKUs and an under 45 minute delivery time fulfilled via their urban darkstores.

These companies are focused on being third party logistics players for delivery rather than creating their own brands, but Jüsto shows that there’s an opportunity for purpose built direct to consumer grocery businesses to use the same infrastructure and create actual brand loyalty.

“We have the technology, talent, and infrastructure to scale our expansion to more cities in Mexico and begin our international expansion, beginning with Colombiam” Weder said. 

“The Moving Forward Act reads like a $1.5 trillion validation of our fund’s thesis — that upgrading cities and related infrastructure is key to fighting the existential threat of climate change and improving lives,” said Stonly Baptiste, co-founder and partner at venture capital fund Urban Us.

Democrats in Congress are wrestling with the twin problems of mass unemployment and a long-delayed need to rebuild America’s crumbling infrastructure. Now, with just 124 days until the election, the party is building a platform that supports national funding to boost employment and develop more sustainable infrastructure heavily focused on renewables.

Some venture investors have long supported aspects of the bill, but persistent gridlock made any movement on new policy unlikely — at least in the near term. The proposed legislation contains provisions that would use $1.5 trillion to overhaul the nation’s transportation infrastructure, schools, affordable housing, renewable energy capacity and postal service.

“[In] this time of strong political division in Washington, D.C., we’ll have to see what if anything can get done on this topic in the Senate. I do have some hope that as we get closer to the election, standing in the way of clean energy is going to be seen by many in the Senate as a vote-loser, and that could sway some votes to support something bipartisan,” said Rob Day, a longtime investor in sustainable technologies and a general partner at Spring Lane Capital. “But I’m not really expecting anything to come close to what’s in this House bill. So as an investor I support what they’re doing here, but I’m not yet changing any investment strategies around it.”

Baptiste said investors already support many of the initiatives under the Moving America Forward Act, but the incentives proposed under the Democratic plan could redouble those efforts.

“In general, it seems like it would incentivize private capital to further align and mobilize in the climate-change battle,” Baptiste said. “Over the last 10 years, VC capital has been increasingly invested in transit in general and there is a 20-year history in the clean energy sector.”

Twitch had already broken viewership records in the first quarter of 2020 amid coronavirus lockdowns, surpassing 3 billion total hours watched in a single quarter for the first time. In the second quarter, it appears that Twitch has broken that record and several others once again. According to a new report from Streamlabs and Stream Hatchet, Twitch saw a massive 62.7% increase in hours watched from Q1 2020 reach 5 billion hours watched in the second quarter.

This figure was also up by 83.1% year-over-year and helps to cement Twitch’s place as the leader among gaming streaming services, with a 67.6% market share.

Twitch also broke records for hours streamed, unique channels, and average concurrent viewership in Q2, the report found.

In terms of streaming, Twitch jumped 58.7% from 121.4 million hours in Q1 to 192.7 million in Q2. Unique channels increased from 63.9% quarter-over-quarter from 6.1 million in Q1 to nearly 10 million in Q2. And average concurrent viewership, meaning the number of viewers watching Twitch at the same time, grew 63.4% over last quarter to reach 2.4 million in Q2.

Image Credits: Streamlabs & Stream Hatchet

Of course, the headline news this quarter was Microsoft’s announcement about its plans to shut down its game streaming service Mixer.

The service will wind down on July 22, and Microsoft has teamed up with Facebook to give users a new home. But that doesn’t guarantee Mixer users will make the switch — and Mixer’s exit may instead help propel Twitch to acquire even more market share than it does today.

Image Credits: Streamlabs & Stream Hatchet

Though Mixer is soon exiting, it had one of its best quarters to date in Q2, reaching 106 million hours watched, up 30.6% from Q1. It also grew its lineup to over 5 million channels. But in context of the broader market, Mixer wasn’t making a dent — it only managed to secure 1.4% market share by Q2, a figure than had actually fallen by over half a percentage point from the prior quarter.

Meanwhile, YouTube Gaming Live increased its hours watched 39.6% from Q1 to Q2 to reach 1.5 billion. To some extent, the growth stems from recent acquisitions of top talent, including Jack “CouRage” Dunlop and Rachell “Valkyrae” Hofstetter, as well as the continued success of CouRage, noted the report.

Image Credits: Streamlabs & Stream Hatchet

YouTube Gaming Live also saw a 19.1% increase in hours streamed in the quarter to reach 16.9 million and unique channels grew 22.7% in the quarter to 1.1 million.

It’s still too early to know if Facebook Gaming will end up benefiting from Mixer’s exit, as planned. But hours watched on the service grew 48.5% quarter-over-quarter to reach 822 million; hours streamed hit 6.1 million; and unique channels reached 203,554. However, Facebook still only has an 11% share of the market and that hasn’t changed since Q1, the report found.

Image Credits:

Though Twitch — and to a lesser extent, other game streaming services — have clearly gained in usage as more consumers look for ways to be entertained at home amid the coronavirus pandemic, it hasn’t been all smooth sailing for the Amazon-owned game streaming site this year.

In recent days, Twitch streamers were hit with a deluge of new RIAA takedown notices that required creators to painstakingly dig through hundreds of hours of past footage to find the infringing content, as Twitch didn’t offer robust search tools or bulk deletion capabilities.

But more concerning is that Twitch has come under fire for its failures to properly protect its community members from abuse and harassment, predatory behavior from adult streamers towards children, and other issues. In June, over 70 people in the gaming industry came forward with allegations of gender-based discrimination, harassment and sexual assault. Twitch vowed to do better, but its failure to set the proper tone for its community in the early days may work against it.

To date, these problems haven’t dampened Twitch’s growth from a viewership or market share perspective, but they could handicap its potential as an revenue-generating business. Already, Twitch has been struggling to generate ad revenue, and its failures to detoxify its community could only make things worse.

Marketers today are growing increasingly concerned about having their messages positioned next to hate speech and other divisive and toxic content. Currently, an ongoing Facebook ad boycott has grown to now officially include over 400 advertisers and has pushed giants like Unilever, Coca-Cola, and Pfizer to pause their ad spend on Facebook’s social network. These same advertisers won’t likely jump at the chance to market their products and services on a game streaming site that can’t control sexual abuse, either.

The full Streamlabs and Stream Hatchet report is here.

Meet Point, a new challenger bank in the U.S. that has been available as a private beta for the past year. Today, the company is launching a major new version of its service and opening its doors to everyone. But you’ll have to get an invite to get in at first.

Point is a consumer banking app combined with a debit card. The company wants to reproduce the experience of credit cards but with debit cards thanks to rewards and a point-based system. There’s no credit check when you sign up.

The startup raised a $10.5 million Series A funding round led by Valar Ventures with Y Combinator, Kindred Ventures, Finventure Studio and business angels also participating. Valar Ventures has backed several high-profile fintech startups, such as N26, TransferWise and Stash.

As a user, you get many features you’d expect from a challenger bank. The debit card is tightly integrated with the app, which means that you can receive notifications every time you make a transaction and manage your card from the app. You don’t pay any foreign transaction fees for international transactions — the company uses Mastercard’s exchange rate for those transactions.

In addition to your physical Point card, you can access a virtual card from the app. Point has partnered with Evolve Bank & Trust for the banking infrastructure, an FDIC-insured bank.

When it comes to points, every transaction lets you earn points. For each $0.01 spent, you get one point. You get 2X points on groceries and dining and 5X points on subscriptions, such as Spotify and Netflix. It then works like a cashback system. You can redeem points for dollars and they’ll appear on your checking account.

The company uses Plaid to link your Point account with a third-party bank account. You can then move money from your existing account to your Point account. You can also top up your account with payment apps, such as Venmo, Cash App and PayPal.

Points’ biggest competitor is probably Chime, the challenger bank that has attracted 8 million customers. Chime doesn’t currently offer rewards. Let’s see if Point can convince customers who have yet to try out a challenger bank that Point is a better option.

Image Credits: Point

IAC and Match Group announced that they have completed a “full separation.”

Previously, Match Group (which owns Tinder, Hinge, OkCupid, PlentyOfFish and Match itself) was a publicly-traded company, with digital holding company IAC as its majority shareholder. Last year, the companies announced a plan that would see IAC’s ownership of Match distributed to IAC’s shareholders — a plan that is complete as of this morning.

The separation also involves a leadership change, with Mark Stein and Gregg Winiarski stepping down from the Match Group board. The company has four new board members: ExecOnline CEO Stephen Bailey, the NBA’s executive president for digital media Melissa Brenner, investor and entrepreneur Wendi Murdoch and actor Ryan Reynolds (also an owner of Aviation American Gin and Mint Mobile).

“Most millennials and Gen Z can’t remember what dating was like before the advent of Tinder, OkCupid and Hinge,” Reynolds said in a statement. “These brands have enormous responsibility and opportunities to affect societies, all while embracing new technologies and remaining at the forefront of pop culture. I’m ready to roll up my sleeves and work with the team on their future growth and success.”

Shar Dubey will continue to serve as Match Group’s CEO, a position she took at the beginning of this year, while Joey Levin remains a both IAC’s CEO and Match Group’s executive chairman.

“This is just the largest transaction at the core of our strategy throughout these 25 years,” said IAC Chairman Barry Diller in a statement. “Be opportunistic, be balance sheet conservative, build up enterprises and when they deserve independence let them have it. Be a conglomerate and an anti-conglomerate, a business model that has been unique to us.”