Tuesday, March 5, 2024

Social media goes down, fade to black

TechCrunch Newsletter
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By Christine Hall

Tuesday, March 05, 2024

Good afternoon, and welcome to TechCrunch PM! Some of our favorite streaming and social media companies found themselves in a jam today. Meanwhile, Target is taking on Amazon Prime, there was a fire at Tesla's Berlin factory and plenty of venture news.

Christine

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Image Credits: TechCrunch

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TechCrunch PM Top 3

Social media and streaming outages: Meta had its hands full this morning when Facebook, Instagram and Threads went down for a few hours due to a "technical" glitch. The fun didn't stop there, though. YouTube confirmed it went down, as did Discord for some users. Both issues seem to be resolved now.

Target wants to be a contender: Target already has its Circle customer loyalty program, but today, the retail giant is going a step further with a paid membership program, Target Circle 360. This takes aim at Amazon and Walmart and offers customers goodies like unlimited free same-day delivery for orders of a certain size, two-day free shipping and other perks.

AWS says it’s okay to leave: Amazon’s AWS is following Google’s lead in allowing customers to transfer their data out of its ecosystem without having to pay certain fees.

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Image Credits: Target

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Dodge flexes its muscle cars: We have not one, but two all-electric versions of the Dodge Charger. It even has a system that mimics the rumble of a Hemi V-8 engine. Purrrrrrr.

Google takes out the search junk: Google is taking on the SEO industry with a search quality update focused on improving the search quality ranking of websites. As such, the search giant will update its spam policies.

Coachella gets some NFTs: OpenSea and the Coachella music festival are partnering to create three NFT collections that offer VIP experiences. The first includes festival passes and access to a new lounge area.

Fire will cost Tesla $100 million in lost production: Officials suspect a fire at a Tesla factory outside of Berlin was the result of arson. Here's our take, and here’s Reuters’.

Intellexa founder gets on the wrong side of the U.S. government: The U.S. Treasury Department imposed sanctions on Tal Dilian, the founder of Intellexa, and Sara Aleksandra Fayssal Hamou for targeting Americans. Apparently, this is the first time the U.S. government has targeted specific people, in addition to companies, with sanctions related to the misuse of commercial spyware. I guess someone has to be first.

New venture rounds: Three companies unveiled what they were working on today. San Francisco–based Ema, creating a "universal AI employee," raised $25 million. Meanwhile, two DeepMind alums developed Haiper, a video generation tool that just grabbed $13.8 million in seed funding. And Fused has $1 million in pre-seed funding and an approach to streamlining satellite imagery.

In larger dollars, the U.K.'s challenger bank Monzo put some serious capital in its pocket with a $430 million raise. This shows that massive rounds in fintech can happen and that it can happen to a company that's had its fair share of challenges.

Boomerang Miles: Venture capitalist Miles Grimshaw is going back to Thrive Capital after three years at Benchmark.

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Image Credits: Stellantis

On the pods

Applying for government benefits is a slow, tedious process that often leaves applicants in limbo for several months. Advocate looks to help.

Today on Found, Becca and Dom talk with Advocate's founder Emilie Poteat, the company that helps Americans engage with federal benefits programs through its technology-enabled services platform.

In this episode, they discuss how the Advocate team is using AI to automate advocacy and reduce the wait time for people seeking aid to nearly nothing. Listen here.

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Former Twitter execs sue Musk for $128M

TechCrunch Newsletter
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By Alex Wilhelm

Tuesday, March 05, 2024

Welcome to TechCrunch AM! Today we have a huge acquisition, a huge download of new venture rounds, yet another Musk lawsuit, and data on European startup fundraising! To work!

Alex

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  1. Deel snaps up PaySpace, reaches $500M ARR: Payroll and compliance company Deel is buying African-based HR software and services company, PaySpace. The move comes days after Deel bought Zavvy, which brought AI-powered career capabilities to its platform. Deel also told TechCrunch that it has crossed the $500 million annual recurring revenue (ARR) milestone. It had reached $100 million ARR back in early 2022, and $295 million in early 2023.

    Elsewhere, cybersecurity code-scanning startup Cycode is buying Bearer, a startup that helps developers write secure software.

  2. Google, Indian devs tussle over Android rules: After Google delisted a number of Indian mobile apps from the Play Store, some of the impacted companies begrudgingly started to comply with Play Store billing rules to get their apps back on the store. Then the situation took a turn after Google met with India's IT Minister, and subsequently said it is "temporarily reinstating the apps of the developers with appeals pending in the Supreme Court." Google and Alphabet are fighting around the world to defend their ability to extract a large cut of mobile app store revenue earned by third-party developers.
  3. Musk sued by former Twitter employees for $128M: When SpaceX's Elon Musk bought Twitter (now called X), he fired not only many rank-and-file workers, he also showed many of the company's former C-suite to the door. Now some of those fired executives are suing Musk for nine figures worth of severance payments. At issue is whether or not Musk fired them "for cause," or if that was simply a pretext to avoid paying them severance.
TechCrunch Top 3 image

Image Credits: Deel

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Founders Fund sheds another partner: After Keith Rabois left Founders Fund to return to Khosla Ventures, the firm has lost another investor: Sam Blond, former chief revenue officer at Brex. Blond is not only leaving Founders Fund, however; he's leaving the investing game altogether.

Signal's Meredith Whittaker scorns anti-encryption efforts: One of the most annoying sagas to raise its ugly head every few years is the effort to weaken (read: destroy) encryption so that governments can better see what we're all saying and doing online. The effort is usually disguised as calls to better protect children, bolster national security, or some such sugarcoated excuse. Signal's Whittaker, a leading voice on privacy and security, obviously disagreed, saying the latest wave of attacks on encryption are "parochial and very politically motivated pieces of legislation often indexed on the idea of protecting children."

Deezer hails Apple fine, blasts Cupertino's DMA response: Apple's list of fans isn't very long in the online music streaming world. After the company was hit by a massive fine in the EU, Deezer joined Spotify in praising the penalty. But the smaller music service went further, arguing that the "EU Commission [should] reexamine Apple's DMA terms in light of this new fine to make it clear that what Apple has proposed is not enough to comply with the new regulation," TechCrunch's Sarah Perez reports.

The Big Tech vs. EU battle is heating up, according to the FT, as a key deadline hangs over the heads of many leading tech companies.

And in better news from Europe, TechCrunch’s Mike Butcher reports that despite a somewhat lackluster 2023, venture dealmaking and M&A activity on the continent are showing signs of life.

Today in AI: I have three key AI stories for you this morning. First, Anthropic launched a suite of new AI models under its Claude brand. The Claude 3 group of models, the well-funded startup says, are better than some well-known competing models like OpenAI's GPT-4. Second, the Verge reports that ChatGPT can now read its answers out loud for readers. And finally, CNBC covered Google co-founder Sergey Brin's comments concerning his company's recent mishaps with its Gemini AI model.

A massive run of new venture rounds: Colombian payment orchestration startup Yuno has closed a $25 million round at a $150 million valuation, putting points on the board not only for the beleaguered fintech technology secretary, but also for Latin America itself. And French commerce platform Catalog has raised a €3 million funding round, another tidbit of data indicating that things are warming up technology companies in France.

In larger dollar terms, Axonius's enterprise asset management business (it's focused on digital assets and infrastructure, mind), just raised $200 million at a flat $2.6 billion valuation. The company is racing towards $100 million in ARR, TechCrunch's Ingrid Lunden reports, putting it on the IPO-trajectory.

And there were so many more! Stockholm-based Cellcolabs has raised $8.7 million to revolutionize stem cell harvesting. RemotePass raised $5.5 million for its remote worker management service (perhaps Deel will buy it next?). Spanish startup Multiverse Computing raised €25 million to help run AI models more cheaply. And, finally, Whistleblower Software has rebranded to Formalize and raised $16 million.

Here's how to get rid of all your duplicate photos (as long as you are on iOS). Developer MacPaw has a new app called CleanMyPhone, which "helps users free up storage by removing duplicate photos and other unwanted images." As someone who takes a gazillion pictures of his toddler, I need this.

Speaking of phones: Nothing's new budget-friendly Nothing Phone (2a) is now up for pre-order for $349.

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Image Credits: Kimberly White / Getty Images

Before you go

Here's how to turn off X's audio and video calling feature: Yeah, no one wants more phone calls. But even if you do, there are privacy and security concerns around X's new calling feature. So, TechCrunch's cybersecurity desk has put together a handy guide that you can use to opt out of the feature entirely.

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Monday, March 4, 2024

Some Airbnb hosts won’t like the new labels

TechCrunch Newsletter
TechCrunch PM Logo

By Christine Hall

Monday, March 04, 2024

Good afternoon. In today's TechCrunch PM, we've got new listing labels from Airbnb, more on Apple's fine, some big startup valuations, a new smartphone and how to speak at Disrupt.

Christine

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Image Credits: Airbnb

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TechCrunch PM Top 3

Airbnb labels top and bottom listings: Pictures say a thousand words, but with the way you can change any image to be what you want it to be, Airbnb is helping potential renters suss out what's what. It now has new labels to indicate which listings are top properties and which are not.

Anthropic slaps OpenAI with a glove: Anthropic claims its new AI chatbot models beat OpenAI's GPT-4. It's a bold claim, yes, and doesn't exactly apply to everything, as you will read.

Mews is a unicorn: Travel is back, baby! Mews, a startup building tools to help hotels manage their IT better, closed on a growth round of $110 million to capture more business beyond hospitality. The funding puts the company at a $1.2 billion valuation post-money.

TechCrunch PM Top 3 image

Image Credits: Anthropic

More top reads

Take a bite out of that Apple: This morning we brought you news about Apple's nearly €2 billion fine from the European Commission. Now read about Apple's plans to appeal this ruling (of course it is) and who else is telling Apple to basically suck it up. Here's another take on where all of this might be headed. I guess Apple picked a good day to announce new MacBook Air models.

The future of e-commerce aggregators is consolidation: Berlin's Razor Group acquired U.S.-based Perch and secured just over $100 million in a round led by Presight Capital. The news comes just days after e-commerce aggregator giant Thrasio filed for bankruptcy. This industry has not been without its challenges, and consolidation is likely how we'll see it reorganize.

Picture it: Google has a new set of Pixel-related features for phones, tablets and watches. There's a 10-bit video support for Instagram, expansion of the Circle to Search feature, automatic workout detection and selective app screening for multiple Pixel devices.

Social media roundup: I don't think I have texted a full sentence without some sort of autocorrect thing happening. Instagram apparently heard our collective crying and rolled out the ability to edit direct messages for up to 15 minutes after sending. Meanwhile, TikTok is introducing a data portability API to help it comply with new European regulations designed to rein in Big Tech's market dominance through various obligations and restrictions. More here and here.

Should we ban ransom payments? You've probably already answered, but Carly Page tells us why this is being brought up, and why not paying the ransom isn't as easy as we may think.

Everything you want to know about Punkt's new smartphone: The Swiss company is putting its minimalist style to work in its first smartphone that positions itself at the crossroads of utility, privacy and minimalism.

Today in venture capital: Topsort, developing retail media technology for small businesses, raised $20 million in Series A capital to boost its valuation to $150 million. And Qatar has a $100 million fund for startups.

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Image Credits: Olly Curtis/Future / Getty Images

Before you go

Want to speak at Disrupt? This year's event is taking place in San Francisco from October 28–30. Here's how you can sign up to be a speaker for a breakout session or roundtable. More here.

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On the pods

On today's Equity, Alex Wilhelm takes a look back at the weekend and what's ahead in the week. As noted in Friday's newsletter, there was a weekend bonus with Nubank's CEO. Over in stocks and crypto, some indices reached record highs, while token prices are also on the ascent. Alex also goes through what's happening with Apple, new AI rules in India, Waymo's trip to the airport and Salla raising a huge pre-IPO round. Listen to it all here.

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