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Politics and the pandemic have changed how we imagine cities

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Science fiction is full of cities imagined from the ground up, but an author who writes about a real place has to engage with real cultures and real histories. It takes a special kind of world-building skill to develop a city when its origins are already known.

The Membranes, a fascinating new book out in June by Chi Ta-wei, meets this challenge. It presents metropolitan Taiwan in 2100 as utterly unfamiliar apart from its culture. In the novella, a young aesthetician named Momo dresses her clients in artificial skins that track their personal data and shield them from the elements. She is part of a “new Renaissance” of technology in T City, which is not quite future Taipei. The view from Momo’s salon reveals the difference: she can see “silver-indigo waves in the infinite depth” and “schools of cadmium yellow fish floating by in tidy regiments.” There is a “membrane” above, in the place where the reader might expect the sky to be. That’s because T City is part of New Taiwan, which contains the entire country’s population and is located on the ocean floor. 

The Membranes cover

Humanity has migrated to subaquatic domes to escape the lethal consequences of a vastly deteriorated ozone layer. Tremendous advances in solar power have made this shift possible, and an android underclass provides maintenance labor. Sentient but without rights, they are manufactured with organs that can be harvested by humans. Gradually, Momo grows enlightened to the oppression of androids, connecting the dots between a surgery she had as a child and the disappearance of her childhood best friend.

There’s an awful lot going on in this short work: new religions form in this future world, the Pacific Ocean territories are divided between countries like the United States and corporations like Toyota, and then there are the peculiar skin treatments at Momo’s salon. What grounds this overwhelming book is Momo’s addiction to digital media. She spends hours on dial-up bulletin board systems and the early search engine Gopher, loves laserdiscs, and pores over “discbooks” and “disczines.” 

“Real worlds feature real peoples. Therefore it’s important that I not depict them in ways that disrespect or cause harm.”

N.K. Jemisin

The charming old-fashioned digital layer in the book clues the reader into the real-world events that inspired Chi. While the English translation is new, The Membranes was first published in 1995, just a few years after a decades-long period of martial law in Taiwan was lifted. It transformed the culture with a “sudden flood of new ideas, combined with the relative lack of statutory oversight on a whole generation of youth,” as translator Ari Larissa Heinrich explains in the afterword. Chi was part of this generation, newly trading bootleg tapes and suddenly exposed to international films, surfing the web, and delighting in media and technology. The disorienting exuberance of this period is captured in the frenetic spirit of the book: the wild future of T City was a funhouse-mirror image of Taiwan as Chi experienced it.

The Membranes shows that even if a population has regrouped to a city on the floor of the ocean, its communities will continue to make history from a common past. This was a concern of N. K. Jemisin as she worked on 2020’s The City We Became. The book is set in New York City, where the author lives, but in the acknowledgments, she writes that it “required more research than all the other fantasy novels I’ve written, combined.” It wasn’t just the infrastructure and landmarks that Jemisin hoped to capture accurately, but the New Yorkers themselves. “Real worlds feature real peoples,” she writes. “Therefore it’s important that I not depict them in ways that disrespect or cause harm.”

The City We Became found a wide and enthusiastic audience when it was released last year in the earliest days of the pandemic. It introduces superhero-like characters who act as avatars of the five boroughs of New York, both protectors and embodiments of their locations. They battle entities reminiscent of H. P. Lovecraft’s monsters, with tentacles and “fronds,” which are manifestations of threats New Yorkers face: gentrification, racism, the police. Jemisin’s research and care paid off; the book struck a chord with readers as their own lives were radically altered. For people whose cities were experiencing a different test of resilience amid the covid-19 crisis, its characters felt true. 

The City We Became cover

One way that science fiction authors have avoided research like Jemisin’s is by presenting familiar cities that are empty besides a handful of survivors. I Am Legend, the 1954 post-apocalyptic classic by Richard Matheson, is set in a Los Angeles that is recognizable by its geography and street names, but a pandemic has mutated its people—with the exception of one man—into shadow-dwelling vampires. 

The novel, an enormous influence on modern zombie horror, channels Atomic Age anxiety by depicting formerly bustling neighborhoods as newly desolate. The last man on earth, Robert Neville, rarely leaves his elaborately fortified house. Instead, he lives a cozy life, listening to piano concertos and drinking alone. There’s no coordinated disaster response in the novel. He doesn’t have to collaborate or negotiate with his neighbors on supply runs. 

As he begins experimenting on the vampires to discover the origins of the disease, I Am Legend poses a thought-provoking question: Is Richard the real monster in this new society? It is suspenseful and deservedly considered a classic, but Matheson offers no real sense of place. The other people have been stripped of their history and are little but bloodthirsty mutants; their motivations and interests are predictable and the culture of the city has no bearing on them. 

Decades earlier, the polymath W.E.B. Du Bois took a rare stab at writing fiction to show how social hierarchies in a city can outlive its own people. His 1920 short story “The Comet,” written in the wake of the flu pandemic, depicts a near extinction event in New York City. A Black man survives, and for the first time in his life, he is able to visit a restaurant on Fifth Avenue without worry. Jim fills his plate in the empty building, thinking, “Yesterday, they would not have served me.” The city of Los Angeles in I Am Legend could be anywhere, but New York is clearly New York in “The Comet.” In just that line, Du Bois provides a snapshot of what life used to be like before the Fifth Avenue restaurant was abandoned. As Jim continues his journey, he comes into contact with a handful of other survivors and finds out that racism did not die when the event took place—and that it will, in fact, persist to the end of the world.

Present-day concerns about inequality shape how cities are represented in recent fiction, too. Folding Beijing, a novella by Hao Jingfang that was recently published in the anthology Invisible Planets, imagines the capital of China as controlled by a technical marvel: three classes of people are segmented in physical structures that rise up or retract below ground depending on the time of day. A minority live in the “First Space” and enjoy the most hours on the surface, while a middle class lives in the “Second Space.” But the majority of the city are the laborers and maintenance workers in the “Third Space,” who experience Beijing only from the hours of 10 o’clock at night to six in the morning. Movement between these partitioned classes is strictly regulated, and the ruthlessness of the architecture is reminiscent of the movie Snowpiercer, where there is a divide between luxury train cars for the elite and those who live in squalor in the caboose. 

Invisible Planets cover

When Lao Dao, part of the Third Space, needs money for his child’s kindergarten tuition, he takes on a job smuggling a love letter from a man in Second Space to a woman in First Space. The gig is risky and highly unusual, given how little cross-class interaction happens in the city. The adventure Lao Dao undertakes—sneaking into trash chutes and crawling onto the city’s rotating parts—is representative of the actual hurdles in Beijing society as Jingfang sees it. Beijing is “divided into multiple groups,” the author told Uncanny magazine, where the story was published in 2015. These groups rarely meet, she said, and they have “completely different lifestyles, habits, and socializing spaces.” 

M. John Harrison’s “The Crisis” is about another architected division of three classes. In the story, London is split between people with homes and those who live on the street, and again divided between human beings and a spectral race of aliens that has claimed the Square Mile as its own. The iGhetti, as they are known, resemble “stalks of fleshy, weak rhubarb” when visible. They are “neither a thing nor a picture of a thing: they seemed to be extruded from a space that wasn’t quite in the world.” 

Balker, who used to sleep in a doorway behind the British Museum, is rounded up by an unknown official and given a clean bed in the heart of the iGhetti’s lair. He’s now a canary to test whether humans might safely cohabitate with the silent invaders. Another Londoner who lives in a comfortable flat forges a relationship with Balker, and attempts to grapple with the different ways they experience the city. 

The story appears in Harrison’s career retrospective collection, Settling the World, which was released last year. An early draft was published to Harrison’s blog in 2013 with the title “Welcome to the middle classes.” Several years later, its sting feels especially sharp given the stark divide in cities between essential workers and those who worked from home through the covid-19 crisis.

Harrison’s most recent novel, The Sunken Land Begins to Rise Again, is also largely set in London, and it was also released last year, becoming a breakout hit that won the 2020 Goldsmiths Prize. The book captures an era, like The Membranes, and is just as tricky to summarize. This novel about misread signals and confusing relationships connected with readers in part because it was published, like The City We Became, at a time when real cities felt uncanny to their residents.

The Sunken Land cover

New York, as Jemisin depicts it, is a tense new metropolis on stolen land. London, in Harrison’s novel, is so old that its history can seem as though it comes from an entirely different land. He renders the city beautifully, as a place where neighborhoods have strange auras and the meanings of various landmarks have faded over centuries. But where the confused state of the characters in The Membranes is exhilarating—an expression of liberation—the confusion in The Sunken Land is laced with melancholy and estrangement, since it follows political retrenchment and division. After Brexit, what even is this place that they call home? And who are these other people in it?

The Sunken Land introduces Shaw, a man in his 50s living in Wharf Terrace, a neighborhood without a wharf and “no evidence there had ever been one.” His mother has dementia and he has no other family. The woman he is dating has just left London for the provinces. In his crummy studio, his solitude is regularly disturbed by the sounds of strangers down the hall. 

Shaw takes a job off the books with a conspiracy theorist, and one of the plots his boss peddles is that there are little green humanoid creatures in the water. The notion is so absurd and unlikely that eerie phenomena which might confirm it fail to register with Shaw. He has the sensible expectations of a man who must have thought Brexit would never happen, until it did. 

The Membranes, with its subaquatic setting, found a place as alien as life gets on planet Earth. The green creatures in The Sunken Land, on the other hand, conjure up the visceral fright of something slithering and unfamiliar brushing past your skin when you enter a lake. By blending real places with strange circumstances, all these novels and stories offer solace for those of us who feel similarly alienated by the cities that we call home.

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

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Solana, a blockchain platform followed by top crypto investors, says it’s a lot faster than Ethereum

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Solana isn’t known yet outside of the crypto community. But insiders think the blockchain platform is interesting for a wide variety of reasons, beginning with its amiable founder, Anatoly Yakovenko, who spent more than a dozen years as an engineer working on wireless protocols at Qualcomm and who says he had a lightbulb moment at a San Francisco cafe several years ago following two coffees and a beer.

His big idea centered on creating an historical record to speed along “consensus,” which is how decisions are made on blockchains, which are themselves peer-to-peer systems. Right now, consensus is reached on various blockchains when members solve a mathematical puzzle, a mechanism that’s called “proof of work.” These miners are rewarded for their efforts with cryptocurrency, but process takes work hours in Bitcoin’s case and days in the case of Ethereum, and it’s insanely energy intensive, which is why neither Bitcoin nor Ethereum has proved very scalable. (Bitcoin’s heavy reliance on fossil fuel is the reason Elon Musk cited earlier this week to explain why Tesla is no longer accepting Bitcoin as payment for the company’s electric cars.)

But there is another way. Indeed, crypto watchers and developers are excited about Ethereum and other currencies that are transitioning to a new system called “proof of stake,” wherein people who agree to lock up a certain amount of their cryptocurrency — say it’s Ether — are invited to activate so-called validator software that enables them to store data, process transactions, and add new blocks to the Ethereum blockchain. Like miners, “validators” do what they do to earn more cryptocurrency, but they need far less sophisticated equipment, which opens up the opportunity to more people. Meanwhile, because more validators can participate in a network, consensus can be reached faster.

Yakovenko is enthusiastic about the shift.  We talked with him yesterday, and he said it would “devastating for the entire industry” if Ethereum weren’t able to pull off its objective, given its mindshare and its roughly $500 billion market cap.

Still, he argues that not even proof of stake is good enough. His biggest concern, he says, is that even with proof of stake, miners — and bots — have advance access to transaction information that allows them to exploit users, or front run transactions, because they can control transaction ordering and profit from that power.

Enter Yakovenko big idea, which he calls “proof of history,” wherein the Solana blockchain has developed a kind of synchronized clock that, in essence, assigns a timestamp for each transaction and disables the ability for miners and bots to decide the order of which transactions get recorded onto the blockchain. It also, says Yakovenko, allows for faster block finalization and much faster consensus because the timestamps of previous transactions no longer need to be computed. “Basically, the speed of light is how fast we can make this network go,” he says.

Certainly, Solana — which has sold tokens to investors but never equity in the company — has many excited about its prospects. In recent interviews with both investor Garry Tan of Initialized Capital and CEO Joe Lallouz of the blockchain infrastructure company Bison Trails, both mentioned Solana as among the projects that they find most interesting right now. (We assume both hold its tokens.)

Others say on background that while they understand the developer benefits and need for more scaleable blockchains than Ethereum — and they think Solana is a contender for this market — Solana still needs to more developer mindshare to prove its long-term worth and it’s not there yet. According to Solana itself, there are currently 608 validators helping secure the Solana Network and 47 decentralized applications (or “dapps”) powered by Solana. Meawhile, they were reportedly 33,700 active validators helping to secure “Eth 2.0” as of late December and 3,000 dapps running on the Ethereum blockchain as of February.

In fairness, the Ethereum network went live in 2015, so it has a three-year head start on Solana. In the meantime, Solana has a lead of its own, says Yakovenko, who is based in San Francisco and has assembled a distributed team of 50 employees, including numerous former colleagues from Qualcomm. Asked about other projects that have embraced a proof of history approach, he says that while it’s “all open source” and “anybody can go do it,” there “isn’t a set of our biggest competitors saying they’re going to rework their system and use this.”

The likely reason is that it’s almost comically complicated. “It just takes a lot of work to build these systems,” Yakovenko says. “It takes two to three years to build a new layer one, and you can’t really take an idea for one and stuff it in the other one. If you try to do that, you’re going to set yourself back by six to nine months at the least and potentially introduce bugs and vulnerabilities.” Either way, he adds, “We’re the only ones that are really building this proof-of-history thing, that use a verifiable delay function as a source of time.”

Either way, Solana, which itself has a $12 billion market cap, isn’t interested in competing with Ethereum and other cryptocurrencies on every front anyway, suggests Yakovenko. All it really wants is to disrupt Wall Street and the rest of the global markets, even if he doesn’t put it that way exactly.

He knows it sounds crazy. But the way he sees it, what Solana is building is “an open, fair, censorship-resistant global marketplace” that’s better than anything inside of the New York Stock Exchange or any other means of settling trades. It’s certainly a much bigger opportunity than he imagined, backed at that cafe. As he said yesterday: “Everything that we do to make this thing faster and faster results in this better censorship resistance, and therefore better markets. And price discovery is what I imagine is the killer use case for decentralized public networks. Can we be the world’s price discovery engine? That’s an interesting question to ask.”

Pointing to the wild swings in cryptocurrency prices right now, he says he suspects that “part of that is just developers and folks discovering the network and building cool applications on it.” It’s exciting when people can “self serve and build stuff that they want to go to market,” he adds. “It’s the secret weapon of decentralized networks versus any incumbents like Bank of America or Visa or whatever. Those big companies can’t iterate and move as fast as global set of engineers who can just come together and code whenever they want to.”

He saw the same dynamics play at Qualcomm. “Working in a big company, it seems like there’s a ton of resources, right? They can accomplish anything. But you saw us working on proprietary operating systems while the Linux guys were just working first for fun, right? And it seemed like it was just a weird hobby that people had; they were coding operating systems at night; they were coding over the weekend. Then all of a sudden, Linux is the de facto mobile iOS for Android.”

If you’re curious to learn more about Solana, we’ll have a podcast coming out soon with our longer conversation with Yakovenko. In the meantime, the outlet Decrypt today published an explainer titled “What is Solana?” that you might check out here.

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Extra Crunch roundup: Selling SaaS to developers, cracking YC after 13 tries, all about Expensify

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Before Twilio had a market cap approaching $56 billion and more than 200,000 customers, the cloud-communications platform developed a secret sauce to fuel its growth: a developer-focused model that dispensed with traditional marketing rules.

Software companies that sell directly to end users share a simple framework for managing growth that leverages discoverability, desirability and do-ability — the “aha!” moment where a consumer is able to incorporate a new product into their workflow.

Data show that traditional marketing doesn’t work on developers, and it’s not because they’re impervious to a sales pitch. Builders just want reliable tools that are easy to use.

As a result, companies that are looking to create and sell software to developers at scale must toss their B2B playbooks and meet their customers where they are.


Attorney Sophie Alcorn, our in-house immigration law expert, submitted two columns: On Monday, she analyzed a decision by the U.S. Department of Homeland Security not to cancel the International Entrepreneur Parole program, which potentially allows founders from other countries to stay in the U.S. for as long as 60 months.

On Wednesday, she responded to a question from an entrepreneur who asked whether it made sense to sponsor visas for workers who are working remotely inside the U.S.

Thanks very much for reading Extra Crunch this week, and have a great weekend.

Walter Thompson
Senior Editor, TechCrunch
@yourprotagonist

4 lessons I learned about getting into Y Combinator (after 13 applications)

Image of a chair and a trash can in an office, with the bin surrounded by crumpled paper, representing persistence.

Image Credits: Peter Finch (opens in a new window) / Getty Images

Can you imagine making 13 attempts at something before attaining a successful outcome?

Alex Circei, CEO and co-founder of Git analytics tool Waydev, applied 13 times to Y Combinator before his team was accepted. Each year, the accelerator admits only about 5% of the startups that seek to join.

“Competition may be fierce, but it’s not impossible,” says Circei. “Jumping through some hoops is not only worth the potential payoff but is ultimately a valuable learning curve for any startup.”

In an exclusive exposé for TechCrunch, he shares four key lessons he learned while steering his startup through YC’s stringent selection process.

The first? “Put your business value before your personal vanity.”

The Expensify EC-1

The Expensify EC-1

Image Credits: Illustration by Nigel Sussman, art design by Bryce Durbin

In March, TechCrunch Daily Reporter Anna Heim was interviewing executives at Expensify to learn more about the company’s history and operations when they unexpectedly made themselves less available.

Our suspicions about their change of heart were confirmed on May 3 when the expense report management company confidentially filed to go public.

With a founding team comprised mainly of P2P hackers, it’s perhaps inevitable that Expensify doesn’t look and feel like something an MBA might envision.

“We hire in a super different way. We have a very unusual internal management structure,” said founder and CEO David Barrett. “Our business model itself is very unusual. We don’t have any salespeople, for example.”

Similar to the way companies must file a Form S-1 that describes their operations and how they plan to spend capital, TechCrunch EC-1s are part origin story, part X-ray. We published the first article in a series on Expensify on Monday:

We’ll publish the remainder of Anna’s series on Expensify in the coming weeks, so stay tuned.

As Procore looks to nearly double its private valuation, the IPO market shows signs of life

Construction tech unicorn Procore Technologies this week set a price range for its impending public offering. The news comes after the company initially filed to go public in February of 2020, a move delayed by the pandemic.

In March 2021, Procore filed again for a public offering, but its second shot ran into a cooling IPO market. The company filed another S-1/A in April, and then another in early May. This week’s filing is the first that sets a price for the Carpinteria, California-based software upstart.

But Procore is not the only company that filed and later put on hold an IPO to get back to work on floating. Kaltura, a software company focused on video distribution, also recently got its IPO back on track. Are we seeing a reacceleration of the IPO market? Perhaps.

3 golden rules for health tech entrepreneurs

Family physician Bobbie Kumar lays out the golden rules to ensure your healthcare product, service or innovation is on the right track.

Rule 1: “It’s not enough to develop a ‘new tool’ to use in a health setting,” Dr. Kumar writes. “Maybe it has a purpose, but does it meaningfully address a need, or solve a problem, in a way that measurably improves outcomes? In other words: Does it have value?”

Dear Sophie: How does the International Entrepreneur Parole program work?

lone figure at entrance to maze hedge that has an American flag at the center

Image Credits: Bryce Durbin/TechCrunch

Dear Sophie,

I’m the founder of an early-stage, two-year-old fintech startup. We really want to move to San Francisco to be near our lead investor.

I heard International Entrepreneur Parole is back. What is it, and how can I apply?

— Joyous in Johannesburg

Digging into digital mortgage lender Better.com’s huge SPAC

If you have heard of Better.com but really had no idea what it does before this moment, welcome to the club. Mortgage tech is like pre-kindergarten applications — it applies to a very specific set of folks at a very particular moment. And they care a lot about it. But the rest of us aren’t really aware of its existence.

Better.com, a venture-backed digital mortgage lender, announced this week that it will combine with a SPAC, taking itself public in the second half of 2021. The unicorn’s news comes as the American IPO market is showing signs of fresh life after a modest April.

As tech offices begin to reopen, the workplace could look very different

Colleagues in the office working while wearing medical face mask during COVID-19

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

The pandemic forced many employees to begin working from home, and, in doing so, may have changed the way we think about work. While some businesses have slowly returned to the office, depending on where you live and what you do, many information workers remain at home.

That could change in the coming months as more people get vaccinated and the infection rate begins to drop in the U.S.

Many companies have discovered that their employees work just fine at home. And some workers don’t want to waste time stuck on congested highways or public transportation now that they’ve learned to work remotely. But other employees suffered in small spaces or with constant interruptions from family. Those folks may long to go back to the office.

On balance, it seems clear that whatever happens, for many companies, we probably aren’t going back whole-cloth to the prior model of commuting into the office five days a week.

 

For unicorns, how much does the route to going public really matter?

4 progressively larger balls of US $1 bills, studio shot

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

On a recent episode of TechCrunch’s Equity podcast, hosts Natasha Mascarenhas and Alex Wilhelm invited Yext CFO Steve Cakebread and Latch CFO Garth Mitchell on to discuss when companies should go public, the costs and benefits of the process, and when a SPAC can make sense. Yext pursued a traditional IPO a few years back; Latch is now going public via a blank-check company combination.

The chat was more than illustrative, as we got to hear two CFOs share their views on delayed public offerings and when different types of debuts can make the most sense. While the TechCrunch crew has, at times, made light of certain SPAC-led deals, the pair argued that the transactions can make good sense.

Undergirding the conversation was Cakebread’s recent IPO-focused book, which not only posited that companies going public earlier rather than later is good for their internal operations but also because it can provide the public with a chance to participate in a company’s success.

In today’s hypercharged private markets and frothy public domain, his argument is worth considering.

 

The truth about SDK integrations and their impact on developers

Image of three complex light trails converging against a white background to represent integration.

Image Credits: John Lund (opens in a new window) / Getty Images

Ken Harlan, the founder and CEO of Mobile Fuse, writes about the perks and pitfalls of software development kits.

“The digital media industry often talks about how much influence, dominance and power entities like Google and Facebook have,” Harlan writes. “Generally, the focus is on the vast troves of data and audience reach these companies tout. However, there’s more beneath the surface that strengthens the grip these companies have on both app developers and publishers alike.

“In reality, SDK integrations are a critical component of why these monolith companies have such a prominent presence.”

Don’t hate on low-code and no-code

The Exchange caught up with Appian CEO Matt Calkins after his enterprise app software company reported its first-quarter performance to discuss the low-code market and what he’s hearing in customer meetings. To round out our general thesis — and shore up our somewhat bratty headline — we’ve compiled a list of recent low-code and no-code venture capital rounds, of which there are many.

As we’ll show, the pace at which venture capitalists are putting funds into companies that fall into our two categories is pretty damn rapid, which implies that they are doing well as a cohort. We can infer as much because it has become clear in recent quarters that while today’s private capital market is stupendous for some startups, it’s harder than you’d think for others.

Bird’s SPAC filing shows scooter-nomics just don’t fly

A pair of Bird e-scooters parked in Barcelona. Image Credits: Natasha Lomas/TechCrunch

Historically — and based on what we’re seeing in this fantastical filing — Bird proved to be a simply awful business. Its results from 2019 and 2020 describe a company with a huge cost structure and unprofitable revenue, per filings. After posting negative gross profit in both of the most recent full-year periods, Bird’s initial model appears to have been defeated by the market.

What drove the company’s hugely unprofitable revenues and resulting net losses? Unit economics that were nearly comically destructive.

Dear Sophie: Does it make sense to sponsor immigrant talent to work remotely?

lone figure at entrance to maze hedge that has an American flag at the center

Image Credits: Bryce Durbin/TechCrunch

Dear Sophie,

My startup is in big-time hiring mode. All of our employees are currently working remotely and will likely continue to do so for the foreseeable future — even after the pandemic ends. We are considering individuals who are living outside of the U.S. for a few of the positions we are looking to fill.

Does it make sense to sponsor them for a visa to work remotely from somewhere in the United States?

— Selective in Silicon Valley

The hamburger model is a winning go-to-market strategy

Follow the Hamburger model for your go-to-market strategy

Image Credits: ivan101 / Getty Images

“Today, we live in a world of product-led growth, where engineers (and the software they have built) are the biggest differentiator,” says Coatue Management general partner Caryn Marooney and investor David Cahn. “If your customers love what you’re building, you’re headed in the right direction. If they don’t, you’re not.

“However, even the most successful product-led growth companies will reach a tipping point, because no matter how good their product is, they’ll need to figure out how to expand their customer base and grow from a startup into a $1 billion+ revenue enterprise.

“The answer is the hamburger model. Why call it that? Because the best go-to-market (GTM) strategies for startups are like hamburgers:

  • The bottom bun: Bottom-up GTM.
  • The burger: Your product.
  • The top bun: Enterprise sales.”

Software subscriptions are eating the world: Solving billing and cash flow woes simultaneously

the recycle logo recreated in folded US currency no visible serial numbers/faces etc.

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

Krish Subramanian, the co-founder and CEO of Chargebee, writes that while subscription business models are attractive, there are two major pitfalls: First, payment.

“Regardless of company size, there’s an ongoing need to convince customers to sign up long term,” Subramanian writes. “The second issue: How do businesses cover the funding gap between when customers sign up and when they pay?”

Is there a creed in venture capital?

Scott Lenet, the president of Touchdown Ventures, asks how deal-makers should think about how to handle themselves when counter-parties attempt to change an agreement. “When is it OK to modify terms, and when should deal-makers stand firm?” he asks.

“Entrepreneurs and investors should recognize that contracts are worth very little without the ongoing relationship management that keeps all parties aligned. Enforcement is so unusual in the world of startups that I consider it a mostly dead-end path. In my experience, good communication is the only reliable remedy. This is the way.”

 

Even startups on tight budgets can maximize their marketing impact

Maximize the impact of your marketing strategy

Image Credits: Ray Massey / Getty Images

“Search engine optimization, PR, paid marketing, emails, social — marketing and communications is crowded with techniques, channels, solutions and acronyms,” writes Dominik Angerer, CEO and co-founder of Storyblok, which provides best practice guidance for startups on how to build a sustainable approach to marketing their content. “It’s little wonder that many startups strapped for time and money find defining and executing a sustainable marketing campaign a daunting prospect.

“The sheer number of options makes it difficult to determine an effective approach, and my view is that this complexity often obscures the obvious answer: A startup’s best marketing asset is its story.”

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Daily Crunch: Stripe buys Y Combinator alum Bouncer for undisclosed sum

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To get a roundup of TechCrunch’s biggest and most important stories delivered to your inbox every day at 3 p.m. PDT, subscribe here.

Wrapping the week here at Daily Crunch with a big thanks to Henry for taking over yesterday and a fist bump to everyone who has written in with notes on its format. We’re still tinkering, so your notes are read and (mostly) appreciated, even if we can’t respond to everyone.

Stick with us as we get this fully figured out. — Alex

TechCrunch Top 3

Coding school drama: The market for coding schools and bootcamps is not going to go away so long as there is an outsized market demand for developers that current educational methods can’t fulfill. But not every player in the market is doing well. Lambda School, for example, is in even more hot water this week.

VCs love edtech: While private investors are happily pouring capital into the edtech startup market, the share prices of many public edtech companies are under fire. That’s a sentiment gap that TechCrunch is keeping close tabs on. More here on the edtech venture market.

Apply to Startup Battlefield: There’s not a lot of time left to apply to the upcoming Disrupt Startup Battlefield. And we want to hear from you. Really. Many startups that have taken part in our free and fun and very public pitch-off have gone on to raise lots of capital or even go public. So hang out with us; we think you’re great!

Startups and VC

Stripe buys Bouncer: The progress of the yet-private Stripe as an online finance behemoth continued today with its purchase of Bouncer, a startup based in Brooklyn that TechCrunch reports has “built a platform to automatically run card authentications and detect fraud in card-based online transactions.” Fraud detection is a point of product differentiation among online payment companies, so this is a deal to watch.

Why aren’t more African startups going public? The SPAC boom is taking a host of American startups public, but not upstart tech companies from Africa. The real issue could simply be one of scale, it turns out. TechCrunch investigates.

SoftBank makes piles of money: Some of the bets that SoftBank has made on its own, and via its Vision Fund 1 and 2, have been clunkers. WeWork remains a byword for embarrassment. But the teleco and investing powerhouse has been on a heater lately, as TechCrunch’s Equity Podcast explored. How good were its results? Very, very well. More on its investing performance here.

Don’t leak customer account data: An exercise startup that competes with Peloton didn’t have its cybersecurity house in order. Echelon, TechCrunch reports, “had a leaky API that let virtually anyone access riders’ account information.” That’s all kinds of not good. And the news item explains why cybersecurity has been so hot lately. More tech everywhere means more potential vulnerabilities everywhere, as well.

5 ways to raise your startup’s PR game

By now, it’s widely understood that storytelling is the foundation for successful startup PR.

Tech journalists receive more pitches than we can count each day from very early-stage companies seeking to make a name for themselves, and, to be honest, most of them sound like they were written with language-prediction technology.

What most companies fail to grasp is that storytelling is everyone’s job, like product managers who write blog posts that give users real insights into the latest release. The same holds true for founders who take part in Reddit AMAs and engineers who join product Slack chats.

To make a splash and stay relevant, here are five actionable suggestions that won’t cost a dime to implement.

(Extra Crunch is our membership program, which helps founders and startup teams get ahead. You can sign up here.)

Big Tech Inc.

Wrapping up news from the biggest tech companies this week, a short digest of earnings results from companies that you care about is in order.

Coinbase met its pre-released Q1 2020 earnings expectations, posting both huge revenue and profit gains. In short, the first quarter was a huge win for the crypto trading house. It had the same sort of quarter that likely led to Robinhood filing to go public.

DoorDash blew the, er, doors off its own quarter, leading to its shares spiking by around 25% in today’s trading. That’s one hell of a result. Sure, DoorDash is worth a lot less than it was at its peak, but the company had a great day all the same.

Airbnb managed a roughly 2.5% gain today after reporting its own earnings yesterday. It also got an analyst upgrade to boot. In short, the company managed year-over-year revenue growth, but also detailed larger-than-anticipated losses thanks to some one-time items. Worth around $85 billion, Airbnb remains richly valued.

And then there was Alibaba, which has lost around a quarter-trillion in value since it got into a scrap with its local administration and swung to a loss after it was served with a multibillion dollar fine by the Chinese government. But the e-commerce giant’s $28.6 billion in total revenue was up 64% compared to its year-ago result. Hot dang.

Now you are all caught up! Have a lovely weekend, and we’ll see you again Monday afternoon.

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