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Affirm, Airbnb, C3.ai, Roblox, Wish file for tech IPO finale of 2020

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Editor’s note: Get this free weekly recap of TechCrunch news that any startup can use by email every Saturday morning (7 a.m. PT). Subscribe here.

The wait was long but this week the time was right: Airbnb finally filed its S-1 and so did Affirm, C3.ai, Roblox, and Wish. We are likely to see these five price on public markets before the end of an already superlative year for tech IPOs. The ongoing pandemic and political turmoil were not scary enough, apparently.

This coming decade, you have to think that we’ll see a more even spread of tech companies going public. Many of the companies above have been bottled up for years behind privately funded growth strategies. Today, however, the industry has a better grasp of SPACs and direct listings, and various funding routes. Companies have more options from their founding for how they might grow and exit one day. Public investors in 2020 also seem to have a deeper appreciation for the current revenue numbers and future growth opportunities for tech companies. Why, I can still remember all the geniuses who bragged about shorting the Facebook IPO not so long ago.

Will we see a more even spread of where IPOs come from? While all of this week’s filers are headquartered in San Francisco or environs, that now feels almost like a coincidental reference to the years when these companies were founded. More states have been minting their own unicorns, with Ohio-based Root Insurance recently going public and Utah-based Qualtrics heading (back) that way. Tech startups are now global, meanwhile, and plenty of countries are working to keep their unicorns closer to home than New York.

On to the headlines from TechCrunch and Extra Crunch:

If you didn’t make $1B this week, you are not doing VC right (EC)

Affirm files to go public

Inside Affirm’s IPO filing: A look at its economics, profits and revenue concentration (EC)

Airbnb files to go public

5 questions from Airbnb’s IPO filing (EC)

The VC and founder winners in Airbnb’s IPO (EC)

Roblox files to go public

What is Roblox worth? (EC)

Wish files to go public with 100M monthly actives, $1.75B in 2020 revenue thus far

Unpacking the C3.ai IPO filing (EC)

With a 2021 IPO in the cards, what do we know about Robinhood’s Q3 performance? (EC)

(Photo by Win McNamee/Getty Images)

What does a Biden administration mean for tech?

What does Joe Biden intend as president around technology policy? On the one hand, tech companies might not be returning to the White House too fast. “All told, we’re seeing some familiar names in the mix, but 2020 isn’t 2008,” Taylor Hatmaker explains about potential presidential appointments from the industry. “Tech companies that emerged as golden children over the last 10 years are radioactive now. Regulation looms on the horizon in every direction. Whatever policy priorities emerge out of the Biden administration, Obama’s technocratic gilded age is over and we’re in for something new.”

However, tech industries and companies focused on shared goals might find support. In a review of Biden’s climate-change policies, Jon Shieber looks at major green infrastructure plans that could be on the way.

Any policies that a Biden administration enacts would have to focus on economic opportunity broadly, and much of the proposed plan from the campaign fulfills that need. One of its key propositions was that it would be “creating good, union, middle-class jobs in communities left behind, righting wrongs in communities that bear the brunt of pollution, and lifting up the best ideas from across our great nation — rural, urban and tribal,” according to the transition website. An early emphasis on grid and utility infrastructure could create significant opportunities for job creation across America — and be a boost for technology companies. “Our electric power infrastructure is old, aging and not secure,” said Abe Yokell, co-founder of the energy and climate-focused venture capital firm Congruent Ventures. “From an infrastructure standpoint, transmission distribution really should be upgraded and has been underinvested over the years. And it is in direct alignment with providing renewable energy deployment across the U.S. and the electrification of everything.”

Rebar is laid before poring a cement slab for an apartment in San Francisco CA.

Image Credits: Steve Proehl (opens in a new window) / Getty Images

The future of construction tech

A skilled labor shortage is piling on top of the construction industry’s traditional challenges this year. The result is that tech adoption is getting a big push into the real world, Allison Xu of Bain Capital Ventures writes in a guest column for Extra Crunch this week. She maps out six main construction categories where tech startups are emerging, including project conception, design and engineering, pre-construction, construction execution, post construction and construction management. Here’s an excerpt from the article about that last item:

  • How it works today: Construction management and operations teams manage the end-to-end project, with functions such as document management, data and insights, accounting, financing, HR/payroll, etc.
  • Key challenges: The complexity of the job site translates to highly complex and burdensome paperwork associated with each project. Managing the process requires communication and alignment across many stakeholders.
  • How technology can address challenges: The nuances of the multistakeholder construction process merit value in a verticalized approach to managing the project. Construction management tools like ProcoreHyphen Solutions and IngeniousIO have created ways for contractors to coordinate and track the end-to-end process more seamlessly. Other players like Levelset have taken a construction-specific approach to functions like invoice management and payments.

Virtual HQs after the pandemic?

Pandemic-era work solutions like online team meeting spaces are heading towards a less certain, vaccine-based reality. Have we all gone remote-first enough that they will have a real market, still? Natasha Mascarenhas checks in with some of the top companies to see how it’s looking, here’s more:

With the goal of making remote work more spontaneous, there are dozens of new startups working to create virtual HQs for distributed teams. The three that have risen to the top include Branch, built by Gen Z gamers; Gather, created by engineers building a gamified Zoom; and Huddle, which is still in stealth.

The platforms are all racing to prove that the world is ready to be a part of virtual workspaces. By drawing on multiplayer gaming culture, the startups are using spatial technology, animations and productivity tools to create a metaverse dedicated to work.

The biggest challenge ahead? The startups need to convince venture capitalists and users alike that they’re more than Sims for Enterprise or an always-on Zoom call. The potential success could signal how the future of work will blend gaming and socialization for distributed teams.

Around TechCrunch

Head of the US Space Force, Gen. John W. ‘Jay’ Raymond, joins us at TechCrunch Sessions: Space

Amazon’s Project Kuiper chief David Limp is coming to TC Sessions: Space

Across the week

TechCrunch

Against all odds: The sheer force of immigrant startup founders

S16 Angel Fund launches a community of founders to invest in other founders

Pre-seed fintech firm Financial Venture Studio closes on debut fund to build on legacy of top investments

How esports can save colleges

Why are telehealth companies treating healthcare like the gig economy?

A court decision in favor of startup UpCodes may help shape open access to the law

Extra Crunch

Will Zoom Apps be the next hot startup platform?

Is the internet advertising economy about to implode?

Surging homegrown talent and VC spark Italy’s tech renaissance

Why some VCs prefer to work with first-time founders

3 growth tactics that helped us surpass Noom and Weight Watchers

A report card for the SEC’s new equity crowdfunding rules

#EquityPod

From Alex Wilhelm:

Hello and welcome back to Equity, TechCrunch’s venture capital-focused podcast (now on Twitter!), where we unpack the numbers behind the headlines.

This week wound up being incredibly busy. What else, with a week that included both the Airbnb and Affirm IPO filings, a host of mega-rounds for new unicorns, some fascinating smaller funding events and some new funds?

So we had a lot to get through, but with Chris and Danny and Natasha and your humble servant, we dove in headfirst:

What a week! Three episodes, some new records, and a very tired us after all the action. More on Monday!

Equity drops every Monday at 7:00 a.m. PDT and Thursday afternoon as fast as we can get it out, so subscribe to us on Apple PodcastsOvercastSpotify and all the casts.

Lyron Foster is a Hawaii based African American Musician, Author, Actor, Blogger, Filmmaker, Philanthropist and Multinational Serial Tech Entrepreneur.

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Alibaba vies for a piece of China’s booming EV market

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There’s no lack of news these days on China’s tech giants teaming up with traditional carmakers. Companies from Alibaba to Huawei are striving to become relevant in the trillion-dollar auto industry, which itself is seeking an electric transition and intelligent upgrade as 5G comes of age.

State-owned automaker SAIC Motor, a major player in China, unveiled this week a new electric vehicle arm called Zhiji, in which Alibaba and a Shanghai government-backed entity are minority shareholders. The tie-up comes as Chinese EV startups like Xpeng and Nio and their predecessor Tesla see their stocks soaring in recent months.

Alibaba’s ties with SAIC can be traced back to 2015 when they jointly announced a $160 million investment in internet-connected cars. The partners moved on to form a joint venture called Banma (or ‘Zebra’) and Alibaba has since developed a slew of auto solutions for the Banma platform to enable everything from voice-activated navigation to voice ordering coffee, which is, of course, linked to the Alipay e-wallet.

Alibaba is certainly not SAIC’s exclusive supplier, as it’s also worked closely with the likes of BMW and Audi as well over the years.

For SAIC’s new EV brand, Alibaba will continue to be its “technology solution provider,” an Alibaba spokesperson told TechCrunch.

The other tech giant making big moves in auto is Huawei. Just this week, the telecoms equipment and smartphone maker announced it would fold its smart car unit into its consumer business group, which previously focused on handsets. The expanded group will continue to be steered by Richard Yu, regarded as the man who helped grow Huawei from an underdog in the mobile industry to a leading global player.

Huawei’s ambition in auto is “not to manufacture cars but to focus on developing ICT [information and communications technology] to assist automakers in producing cars,” the firm asserts in the statement, addressing rumors that it wants to encroach on traditional carmakers’ turf.

Huawei’s phone business has taken a hit since U.S. sanctions hobbled its supply chain. It sold its budget phone brand Honor recently in the hope that the spinoff, independent from Huawei, will be free from trade curbs.

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Gift Guide: Black Friday tech deals that are actually worth checking out

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Black Friday approaches! In a year where asking Alexa what day today is feels totally normal, this Black Friday seems like it came out of nowhere.

As we say pretty much every year, a lot of Black Friday deals are… not that good. While there are certainly deals to be found, there’s also a lot of hand-waving going on to help retailers and manufacturers clear out the old models and get that Q4 numbers boost.

It can also be a day where it’s way too easy to buy junk just because it’s got a 40% off tag on it. With that in mind, we’ve tried to limit this list to the stuff we’d recommend even when it’s not on sale. If we see anything else worthwhile over the next day or two, we’ll add it — so feel free to check back in.

This article contains links to affiliate partners where available. When you buy through these links, TechCrunch may earn an affiliate commission.

A few tips to keep in mind today:

  • If you see something is on sale and want to check if the “sale” price is really any better than normal, pop it into a price tracker like camelcamelcamel. If the price suddenly increased last week only to be “reduced” by whatever percent this week, you know somethings up.
  • Be at least a little wary of TV deals. There are TV deals to be had, for sure — but the most eye-popping deals tend to be surplus panels with a new model number slapped on them. Google the model number; if that specific TV seems to only exist for the sake of Black Friday, think twice.

 

Apple

Airpods Pro

Image Credits: Brian Heater

Once unheard of, Apple deals on Black Friday are now a little easier to find. They tend to go fast though!

  • Both Amazon and Walmart are selling AirPods Pro for $170 — a super steep discount from the usual $250. The stock seems to be coming and going fast, so this one might be tough to get.
  • The 40mm, GPS version of the latest Apple Watch (Series 6) is down to $379 from $399 on Amazon right now. While that’s only a drop of $20, these things only just hit the shelves back in September.
  • Best Buy has some pretty solid deals on the latest (8th gen) iPads, like a 10.2″ 32GB model for $280 (usually $330), or the 128GB model for $360 (usually $430.)

Amazon

Image Credits: Amazon

With people already flocking to Amazon on Black Friday, the company usually offers some pretty massive discounts on its Amazon-branded devices as a means of seizing the moment and getting more people into their ecosystem. Sure enough:

Google

google nest hub

Image Credits: Brian Heater

Google tends to go pretty big with the Black Friday discounts, and this year is no exception. Some examples:

  • The Nest Hello doorbell is down to $179, normally $229.
  • Nest Hub is down to $50 (normally $90), and its bigger brother the Nest Hub Max (pictured above) is down to $179 (normally $229.)
  • The latest generation of the Nest Mini smart speaker is $19, down from $50. The beefier Nest Audio speaker, meanwhile, is down to $85 each (usually $99) with the catch that you’ve got to buy two.
  • Stadia Premiere Edition — effectively a starter kit for Google’s gaming-in-the-cloud service Stadia, including both a Stadia controller and a Chromecast Ultra — is down to $70 from $100. The controller alone would normally cost you $70, so if you were already considering giving Stadia a spin it’s sort of like getting a free Chromecast Ultra?

Roku

Image Credits: Roku

Roku’s new Streambar — basically a Roku box and a soundbar crammed into one package — is going for $100 today, down from its normal price of $130.

Sonos

Sonos Move 11

If you’re going to expand your Sonos system (which, hey, is sort of the point of having a Sonos system), Black Friday is usually a good day to do it. Alas, this years Sonos sales are a bit limited, but there are still savings to be found. Amazon has the portable Sonos Move down to $299 (normally $399) and the Sonos SUB down to $599 (usually $699), while Sonos itself is also selling its Beam Playbar for $299 (usually $399.)

Hulu

Image Credits: Hulu

If you don’t mind ads, Hulu is slashing the price of its ad-supported plan from $6 a month to $2 a month for 1 year. Sadly, no deal for the ad-free plan, which is still at its normal $12 a month — but if you were planning on checking out the ad-supported plan anyway, you might as well save a couple bucks.

Calm

Image Credits: Calm

Calm, the popular subscription-based meditation/sleep sounds service, is offering up a pair of promos: they’ll cut the price on a one year membership down by 50% (from $70 to $35), or a lifetime membership by 60% ($399 to $159.)

Video Games

You probably won’t be finding any deals on this year’s new Xboxes or Playstations because… well, they already couldn’t keep up with demand. This year’s best deals are going to be on games, services, and in a few cases, accessories.

Hell, the same goes for the Nintendo Switch. Even without a new hardware release this season, Nintendo’s console is flying off the shelves. If you’re looking for big savings on a Switch itself this year, know that the inventory is incredibly low — any retailer offering a Switch deal is really just doing it to get your hopes up and get you on the site. We’re having a hard time finding any in stock even at full price.

Xbox Deals:

  • Microsoft is selling Xbox controllers (which will work with the next-gen Xbox Series consoles!) for $40, down from the usual $60.
  • Best Buy is selling 3 months of Xbox Game Pass (Microsoft’s Netflix-style game subscription service) for $23, down from the usual $45.
  • Gears 5 is $5 (usually $40) at Best Buy, Doom Eternal is $20 (usually $60) at GameStop, and Microsoft is taking $10 off the newly remastered Tony Hawk’s Pro Skater 1 + 2.

Playstation Deals

  • Sony is selling 12 months of Playstation Plus (its service that lets you play multiplayer games online) for $45, down from $60.
  • Amazon is selling Last of Us Part II for $30 (normally $60), and GameStop and a number of other retailers have Ghost of Tsushima going for $40 (normally $60). Sony has the oh-so-hard-but-oh-so-addicting Cuphead for $15, down from $20. Most retailers will also have sales on Star Wars Jedi: Fallen Order, Watch Dogs Legion, and Star Wars Squadrons.

Switch Deals:

  • Nintendo is selling Luigi’s Mansion, Super Mario Maker 2, Yoshi’s Crafted World, Mario Tennis Aces, and Zelda Link’s Awakening for $40 (normally $60) through Amazon and most other retailers. All of these are fantastic!

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Facebook’s latest ad tool fail puts another dent in its reputation

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Reset yer counters: Facebook has had to ‘fess up to yet another major ad reporting fail.

This one looks like it could be costly for the tech giant to put right — not least because it’s another dent in its reputation for self reporting. (For past Facebook ad metric errors check out our reports from 2016 here, here, here and here.)

AdExchanger reported on the code error last week with Facebook’s free ‘conversion lift’ tool which it said affected several thousand advertisers.

The discovery of the flaw has since led the tech giant to offer some advertisers millions of dollars in credits, per reports this week, to compensate for miscalculating the number of sales derived from ad impressions (which is, in turn, likely to have influenced how much advertisers spent on its digital snake oil).

According to an AdAge report yesterday, which quotes industry sources, the level of compensation Facebook is offering varies depending on the advertiser’s spend — but in some instances the mistake means advertisers are being given coupons worth tens of millions of dollars.

The issue with the tool went unfixed for as long as 12 months, with the problem persisting between August 2019 and August 2020, according to reports.

The Wall Street Journal says Facebook quietly told advertisers this month about the technical problem with its calculation of the efficacy of their ad campaigns, skewing data advertisers use to determine how much to spend on its platform.

One digital agency source told the WSJ the issue particularly affects certain categories such as retail where marketers have this year increased spending on Facebook and similar channels by up to 5% or 10% to try to recover business lost during the early stages of the pandemic.

Another of its industry sources pointed out the issue affects not just media advertisers but the tech giant’s competitors — since the tool could influence where marketers chose to spend budget, so whether they spend on Facebook’s platform or elsewhere.

Last week the tech giant told AdExchanger that the bug was fixed on September 1, saying then that it was “working with impacted advertisers”.

In a subsequent statement a company spokesperson told us: “While making improvements to our measurement products, we found a technical issue that impacted some conversion lift tests. We’ve fixed this and are working with advertisers that have impacted studies.”

Facebook did not respond to a request to confirm whether some impacted advertisers are being offered millions of dollars worth of ad vouchers to rectify its code error.

It did confirm it’s offering one-time credits to advertisers who have been ‘meaningfully’ impacted by the issue with the (non-billable) metric, adding that the impact is on a case by case basis, depending on how the tool was used.

Nor did it confirm how many advertisers had impacted studies as a result of the year long technical glitch — claiming it’s a small number.

While the tech giant can continue to run its own reporting systems for b2b customers free from external oversight for now, regulating the fairness and transparency of powerful Internet platforms which other businesses depend upon for market access and reach is a key aim of a major forthcoming digital services legislative overhaul in the European Union.

Under the Digital Services Act and Digital Markets Act plan, the European Commission has said tech giants will be required to open up their algorithms to public oversight bodies — and will also be subject to binding transparency rules. So the clock may be ticking for Facebook’s self-serving self-reporting.

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