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16 Jul 2021

Tumblr’s parent company is buying popular podcast app Pocket Casts

Pocket Casts will soon have a new home. Automattic, the parent company of Tumblr and WordPress.com, is buying the podcast app from a collective of public radio groups, including NPR and BBC Studios. Automattic didn’t disclose how much it will pay for Pocket Casts.

Co-founders Russell Ivanovic and Philip Simpson will remain in charge of the Pocket Casts team. It seems Automattic is already thinking about ways of incorporating the multi-platform app into its blogging tools.

“As part of Automattic, Pocket Casts will continue to provide you with the features needed to enjoy your favorite podcasts (or find something new),” a WordPress.com blog post states. “We will explore building deep integrations with WordPress.com and Pocket Casts, making it easier to distribute and listen to podcasts.”

Both blogs and podcasts use RSS feeds for distribution, so integrating the two platforms makes sense. Earlier this year, Spotify-owned Anchor teamed up with WordPress.com to turn written material into podcasts via text-to-speech tech. It’ll be interesting to see how the Pocket Casts deal factors into that partnership, if at all.

Editor’s note: This post originally appeared on Engadget.
16 Jul 2021

Rivian delays deliveries of R1T, R1S electric vehicles again

Rivian is pushing back deliveries of its long-awaited R1T electric pickup truck and R1S SUV several more months due to delays in production caused by “cascading impacts of the pandemic,” particularly the ongoing global shortage of semiconductor chips, according to a letter sent to customers from CEO RJ Scaringe. The R1T deliveries will begin in September with the R1S to follow “shortly” Scaringe wrote in the message.

Deliveries of the R1T Launch Edition vehicles, the limited edition release of its first series of “electric adventure vehicles,” were supposed to begin in July after being delayed by a month.

A segment of the letter:

We know you can’t wait to get behind the wheel of your vehicle. Earlier this summer, we announced that deliveries would begin in July; however, the timing for the first deliveries of the R1T has shifted to September, with the R1S shortly thereafter in the fall. I wanted to be sure you heard this from me directly.

There are many reasons why our production ramp is taking longer than expected. The cascading impacts of the pandemic have had a compounding effect greater than anyone anticipated. Everything from facility construction, to equipment installation, to vehicle component supply (especially semiconductors) has been impacted by the pandemic. Beyond these unforeseen challenges, launching three new vehicles while setting up a multi-vehicle manufacturing plant is a complex orchestra of coordinated and interlinked activities where small issues can translate into ramp delays.

Scaringe provided a few more details about the company’s progress, including it now employs more than 7,000 people. The Rivian factory in Normal, Ill., has two separate production lines producing vehicles, according to Scaringe. One is dedicated for the R1 vehicles and other line is for its commercial vans.

Scaringe said Rivian has “built hundreds of vehicles as part of our validation process, with many of those spotted out in the wild covered in unique vinyl wraps.” He also addressed why those vehicles haven’t been delivered to customers, noting that the company believes “it is critical to both our long-term success and your ultimate satisfaction that the quality and robustness of our launch products truly sets the tone for what to expect from us as a brand.”

The founder and CEO also acknowledged that the company needed to improve how it communicates specifics around deliveries.

16 Jul 2021

Crypto investors like Terraform Labs so much, they’re committing $150 million to its ‘ecosystem’

There are many blockchain platforms competing for investors’ and developers’ attention right now, from the big daddy of them all, Ethereum, to so-called “Ethereum Killers” like Solana, which we wrote about in May.

Often, these technologies are seen as so promising that investors are willing to fund not only the blockchains but an ecosystem of products and projects that are built on their blockchain networks. On Wednesday, for example, Phantom, a digital wallet that resides on the Solana blockchain network, announced $9 million in  Series A funding led by Andreessen Horowitz (which in June also splashed out a lot of money for Solana’s digital tokens).

Similarly, a syndicate of investors today is casting their votes for Terraform Labs, a three-year-old platform that originally set out to mint different so-called stablecoins for e-commerce that mimic the value of various fiat currencies and has since expanded its offerings.

There is so much more to be built off the platform, in fact, that backers including Pantera Capital and Arrington XRP have just committed to investing $150 million on products tied to the Terra ecosystem, commitments that will be deployed over several years, says the company, and commitments that, should they prove fruitful, will boost Terraform’s underlying growth in a kind of virtuous circle.

Why are they so excited about Terraform? The Singapore-based company has apparently been gaining ground fast with merchants in users in South Korea by shortening settlement time from days to seconds, often without e-commerce customers knowing that their online (and sometimes offline) transaction involved a blockchain.

It’s been doing so well, says investor Mike Arrington, that it launched an e-commerce wallet called Chai that’s grown popular in Asia. It also launched Mirror Protocol, which creates fungible assets, or “synthetics,” that track the price of real world assets. (Arrington XRP led Mirror’s first round.)

Indeed, the market cap of Terraform’s tokens — they’re called LUNA — has skyrocketed from $300 million in January to $2.6 billion as excited buyers snap them up.

Whether these backers are getting ahead of themselves is an open question, but the company’s equity investors — which also include Coinbase Ventures and Mike Novogratz of Galaxy Digital — are plainly betting there is more to come.

Back in January, when Galaxy co-led a $25 million round in Terraform, Novogratz talked with Bloomberg about the investment. Among other praise heaped on the company, he said that: “What’s great about Terra is they are one of the first sandbox experiments that’s getting outside the sandbox. We are always looking at those projects because they are the canaries in the coal mines of what else is going to happen.”

16 Jul 2021

Construct Capital’s Dayna Grayson will be a Startup Battlefield Judge at Disrupt 2021

Dayna Grayson has been in venture capital for more than a decade and was one of the first VCs to build a portfolio around the transformation of industrial sectors of our economy.

At NEA, where she was a partner for eight years, she led investments in and sat on the boards of companies including Desktop Metal, Onshape, Framebridge, Tulip, Formlabs and Guideline. She left NEA to start her own fund, Construct Capital, that focuses exclusively on early-stage startups, with a portfolio that includes Copia, ChargeLab, Tradeswell and Hadrian.

It should come as no surprise, then, that we’re absolutely thrilled to have Grayson join us at TechCrunch Disrupt 2021 in September.

Grayson has more than proven that she has a keen eye for transformational technology. Desktop Metal went public in 2020 — she still sits on the board as chair of the compensation committee. Onshape, another NEA-era investment, was acquired by PTC in 2019 for a whopping $525 million. Framebridge was also acquired by Graham Holdings in 2020.

Grayson saw an opportunity to develop a venture brand more hyperfocused on the types of deals she was doing at NEA, which centered around manufacturing and digitizing industrial verticals. That’s where Construct Capital came in. It’s a $140 million fund helmed by Grayson and former Uber exec Rachel Holt.

At Disrupt, Grayson will serve as a Startup Battlefield judge. The Battlefield is one of the world’s most prestigious and exciting startup competitions. Twenty+ early-stage startups hop on our stage and present their wares to a panel of expert VC judges, who then grill the founders on everything about the business, from the revenue model to the go-to-market strategy to the team to the technology itself.

The winner walks away with $100,000 in prize money and the glory of being a Battlefield winner. Households names in tech have gotten their start in the Battlefield, from Dropbox to Mint.

Grayson joins plenty of other seasoned investors on the Battlefield stage, including Camille Samuels, Deena Shakir, Terri Burns, Shauntel Garvey and Alexa Von Tobel.

Disrupt 2021 goes down from September 21 to 23 and is virtual. Snag a ticket here starting under $100 for a limited time!

16 Jul 2021

An insurtech startup exposed thousands of sensitive insurance applications

A security lapse at insurance technology company BackNine exposed hundreds of thousands of insurance applications after one of its cloud servers was left unprotected on the internet.

BackNine might be a company you’re not familiar with, but it might have processed your personal information if you applied for insurance in the past few years. The California-based company builds back-office software to help bigger insurance carriers sell and maintain life and disability insurance policies. It also offers a whitelabeled quote web form for smaller or independent financial planners sell insurance plans through their own websites.

But one of the company’s storage servers, hosted on Amazon’s cloud, was misconfigured to allow anyone access to the 711,000 files inside, including completed insurance applications that contain highly sensitive personal and medical information on the applicant and their family.

A handful of documents reviewed by TechCrunch contained contact information, like full names, addresses, and phone numbers, but also Social Security numbers, medical diagnoses, medications taken, and detailed completed questionnaires about an applicant’s health past and present. Other files included lab and test results, such as blood work and electrocardiograms. Some applications also contained driver’s license numbers.

The exposed documents date back to 2015 and as recently as this month.

Because Amazon storage servers, known as buckets, are private by default, someone with control of the buckets must have changed its permissions to public. None of the data was encrypted.

Security researcher Bob Diachenko found the exposed storage bucket and emailed details of the lapse to the company in early June, but after receiving an initial response, he didn’t hear back and the bucket remained open.

We reached out to BackNine vice president Reid Tattersall, whom Diachenko was in contact with and ignored. TechCrunch, too, was ignored. But within minutes of providing Tattersall — and him only — with the name of the exposed bucket, the data was locked down. TechCrunch has yet to receive a response from Tattersall, or his father Mark, the company’s chief executive, who was copied on a later email.

TechCrunch asked Tattersall if the company has alerted local authorities per state data breach notification laws, or if the company has any plans to notify the affected individuals whose data was exposed. We did not receive an answer. Companies can face stiff financial and civil penalties for failing to disclose a cybersecurity incident.

BackNine works with some of America’s largest insurance carriers. Many of the insurance applications found in the exposed bucket were for AIG, TransAmerica, John Hancock, Lincoln Financial Group, Prudential. When reached prior to publication, spokespeople for the insurance giants did not comment.

Read more:

16 Jul 2021

India poised for record VC year as unicorns head for decisive IPOs

In case you’ve not been paying attention, we’ll say it again: The global venture capital industry is on fire. The second quarter of 2021 was the largest single three-month period on record for dollars invested.

The data coming in points to a worldwide boom. The United States’ startup market had a huge Q2, and investors don’t expect the pace to slow in the country. Europe is also having one hell of a year. Around the world, 2021 is shaping up to be a breakout year for venture investment into startups. And that’s after several years of growing, record-breaking results.


The Exchange explores startups, markets and money.

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India is another good example of this trend. The country’s venture capital haul thus far in 2021 has nearly matched its 2020 total and is on pace for a record year. But as the third quarter gets underway, something perhaps even more important is going on: public-market liquidity.

The new trend is being spearheaded by Zomato, an Indian food delivery giant that could be valued at $8.6 billion in its public debut. Other major Indian unicorns are following it to the public markets, including fintech players like MobiKwik and Paytm, which is backed by Alibaba and its affiliate Ant Financial. The trio of companies could herald a rush of public offerings from Indian companies if their debuts prove lucrative and stable.

Today, The Exchange is taking a look at India’s recent venture capital results and digging more deeply into the country’s IPO pipeline, with help from VCs Kunal Bajaj of Blume Ventures and Manish Singhal of pi Ventures. We’ll also read the tea leaves when it comes to how Zomato’s IPO is performing thus far, and what we can learn from its early data. This will be fun!

16 Jul 2021

Outdoorsy co-founders detail how they expanded the sharing economy to RVs

Jen Young and Jeff Cavins were sitting in a beige conference room at a downtown Vancouver hotel, wasting away under fluorescent lights, an endless PowerPoint and a pair of sad Styrofoam cups of coffee between them. Young was there on a marketing contract. Cavins was a board member. They shared one of those looks that only couples can understand. It said: There’s got to be something better than this.

With 40 years of running technology companies under Cavins’ belt and a successful ad agency career under Young’s, the two decided to craft a business around their shared passion of being out in nature. When they realized there are more than 20 million recreational vehicles all across the U.S., most of which are used only a handful of days, they saw an opportunity. They asked themselves: How do we create memorable outdoor experiences and make them available to everybody?

For seven months, the couple traveled across the U.S. to do market research on travelers and RV owners to form the basis of their company.

The sharing economy of Uber, Lyft and Airbnb had already laid the groundwork. Why not open it up to RVs?

In 2014, Young and Cavins invested their life savings into Outdoorsy, sold their homes and jumped into an Airstream Eddie Bauer trailer. For seven months, the couple traveled across the U.S. to do market research on travelers and RV owners to form the basis of their company.

In June, Outdoorsy raised $90 million in a Series D led by ADAR1 Partners, as well as an additional $30 million in debt financing from Pacific Western Bank. The money will be used in large part to accelerate the growth of Outdoorsy’s insurtech business, Roamly. In the same month, the company announced a partnership with glamping company Collective Retreats to expand its outdoor offerings.

The following interview, part of an ongoing series with founders who are building transportation companies, has been edited for length and clarity. 

You’ve taken a personal approach to your business, spending months in the research phase actually living in an RV and interviewing RV owners and their families around the country. How do you think that’s shaped your business?

Jen Young: When we lived on the road, we had to experience that customer experience every day for hundreds of days. So this is where we were able to pick up and identify what the biggest pain points were on the renter and the owner side and start tackling those first.

For example, we understood what was most important from an insurance perspective because we could hear the voices of renters and owners — they consider these things their babies in many cases.

The owners that are more entrepreneurial-minded, they consider them more of a business asset, but both of them want to know, “What am I going to get for liability insurance? Comp and collision? Interior damage?” The detailed list of those things became the beginning of the product roadmap, as well as itemizing what things have to occur for a good guest experience.

In what ways have you had to pivot your model based on how people have used your platform? 

Cavins: One of the things we learned is most renters don’t want to drive these things, so owners started to do delivery, which became very popular on our platform. Sixty percent of all owners now will just deliver and set up for you so you can arrive at your campsite and everything’s just done. Your chairs are out, your barbecue is out, your awning is out and maybe a bottle of champagne in your fridge for you.

When Jen and I were traveling last year, we saw that most of the American landscape of campgrounds and campsites were overbooked. People couldn’t get their reservations closed the way that you would expect in a world of technologically evolved industries, and we thought there had to be something better in terms of the customer experience for camping, which really catalyzed our investment in glamping company Collective Retreats.

16 Jul 2021

Reliance Retail acquires majority stake in Just Dial for $469 million

Reliance Retail said on Friday it has acquired a controlling stake in 25-year-old Indian search and discovery firm Just Dial in a deal worth $469 million.

The Indian retail giant said it has acquired 41% stake in Just Dial and will make an open offer to acquire up to 26% additional stake.

“Nearly 25 years ago, we had a vision to build a connected single platform dedicated to providing fast, free, reliable and comprehensive information to our users and connect buyers to sellers. Our vision has evolved to not only provide search and discovery but drive commerce across merchants through our B2B platform and enable further consumer to merchant commerce given our platform engagement. Our strategic partnership with Reliance enables us to realize this vision and transform the business going forward,” said VSS Mani, founder and chief executive of Just Dial, in a statement.

More to follow…

16 Jul 2021

Intel rumored to be in talks to buy chip manufacturer GlobalFoundries for $30B

When it comes to M&A in the chip world, the numbers are never small. In 2020, four deals involving chip companies totaled $106 billion led by NVidia snagging ARM for $40 billion. One surprise from last year’s chip-laced M&A frenzy was Intel remaining on the sidelines. That would change if a rumored $30 billion deal to buy chip manufacturing concern GlobalFoundries comes to fruition.

The rumor was first reported by the Wall Street Journal yesterday.

Patrick Moorhead, founder and principal analyst at Moor Insight & Strategies, who watches the chip industry closely, says that snagging GlobalFoundries would certainly make sense for Intel. The company is currently pursuing a new strategy to manufacture and sell chips for both Intel and to others under CEO Pat Gelsinger, who came on board in January to turn around the flagging chip maker.

“GlobalFoundries has technologies and processes that are specialized for 5G RF, IoT and automotive. Intel with GlobalFoundries, would become what I call a “full-stack provider” that could offer a customer everything. This is in full alignment with IDM 2.0 (Intel’s chip manufacturing strategy) and would get Intel there years before it could without GlobalFoundries,” Moorhead told TechCrunch.

It would also give Intel a chip manufacturing facility at a time when there are global chip shortages and huge demand for product from every corner, due in part to the pandemic and the impact it has had on the global supply chain. Intel has already indicated it has plans to spend more than $20 billion to build two fabs (chip manufacturing plants) in Arizona. Adding GlobalFoundries to these plans would give them a broad set of manufacturing capabilities in the coming years if it came to pass, but would also involve a significant investment of tens of billions of dollars to get there.

GlobalFoundries is a worldwide chip manufacturing concern based in the U.S. The company was spun off from Intel’s rival chip maker AMD in 2012, and is currently owned by Mubadala Investment Company, the investment arm of the Government of Abu Dhabi.

Investors seem to like the idea of combining these two companies with Intel stock up 1.59% as of publication. It’s important to note that this deal is still in the rumor stage and nothing is definitive or final yet. We will let you know if that changes.

16 Jul 2021

The price differential for engineers is declining

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

The whole crew was here this week, with Danny and Natasha and Alex  together with Grace and Chris to sort through a very, very busy week. Yep, somehow it is Friday again which means it’s time for our weekly news roundup.

Here’s what we got to in our short window of time:

Like we said, a busy week! Chat you all on Monday morning, early.

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