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Hello and welcome to Daily Crunch for June 29, 2021. Have you ever wanted to give up civilization and move into the woods, while still being able to work? We have good news if this is you. Below you’ll find a lot more, including Facebook’s latest product offering and how a startup wants to save bees. Enjoy! – Alexis
The Top 3 TechCrunch
- Duolingo goes public! The famous edtech unicorn Duolingo goes public. TechCrunch has an overview of the IPO and a deeper dive into the business health of the company. Based on the traffic to our coverage on the subject since last night, you are going to really enjoy learning languages. Also be sure to check out the Duolingo EC-1.
- Facebook is launching newsletters: Say hello to Bulletin, Facebook’s new newsletter service. In competition with Substack, Twitter’s Revu, and other services, Facebook has put together a list of original baby boomer-friendly authors, including Malcolm Gladwell. The social giant is used to testing internal versions of products that are successful outside. We’ll have to wait and see if Bulletin manages to survive on its own.
- SpaceX plans to spend billions on Starlink: According to Elon Musk, SpaceX is losing money on early Starlink connector kits. Starlink is the space company’s low-orbit satellite network that could provide global internet connectivity. According to TechCrunch’s report on Musk’s comments, “SpaceX’s overall investment in the project could be between $ 5 billion and $ 10 billion initially and up to $ 30 billion over time.” For the sake of freelancers around the world, let’s hope the technology evolves to match the investment.
Startups / VC
At the top today in our roundup of the latest startup news, there’s Beeflow. We put it at the top of the list because (1) it’s about bees and (2) it’s called Beeflow. What’s not to like? Through Jordan crook, the startup may have an answer to the decimation of the world’s bee population. And that could make money to boot.
Now the rest of the news:
And I would be remiss if I did not mention that this morning I covered the venture capital rounds of the co-op and Arrows, as well as news regarding Aceleprise’s rebranding.
How VCs can get the most out of co-investing alongside LPs
In a recent private equity survey, 80% of respondents said their co-investments with people outside of traditional venture capital firms outperformed their investments in private equity funds.
Alternative investors are highly motivated and, because they seek higher returns than those generally available in the public markets, they are less intimidated by risk. In return, they benefit from cheaper pricing structures and develop strong links with VCs, thus expanding the talent pool as they develop investment skills.
These relationships also have direct benefits for venture capital firms, such as greater flexibility with diversification and consolidated decision-making power.
“With the right deal structure, deal selection and deal investigation, co-investors can dramatically increase their returns,” says William Kilmer, managing partner of C5 Capital, who wrote an Extra Crunch article for them. VC who are considering an alternative route.
(Extra Crunch is our membership program, which helps founders and startup teams move forward. You can register here.)
Big Tech Inc.
Going from small upstarts to mega-winners, it’s been a good week to be a Big Tech company. Facebook has crossed the $ 1 trillion market capitalization threshold, although it has fallen back below the magic number this afternoon. Here’s what else is happening with the Bigs:
- Shopify is reducing its cut to 0%: Shopify will charge zero for the first million developer revenue they make in its app marketplace. The move is part of a larger trend for app stores to cut their cutbacks as Apple fights tooth and nail to avoid doing the same with its own app store. Shopify’s news is likely aimed more at its e-commerce rival Amazon than Apple, but the move still slightly undermines Cupertino’s argument that it deserves about a third of all commerce that takes place on iOS.
- AI developers are coming: Microsoft’s GitHub product news is notable today, with the sub-organization announcing an AI-powered tool that “suggests code as you type.” GitHub partnered with OpenAI to create the tool. For beginners, the coding service could prove to be super neat.
TechCrunch Experts: Growth Marketing
TechCrunch wants you to recommend growth marketers with expertise in SEO, social, content writing, and more! If you are a growth marketer, skip this investigation with your customers; we would like to know why they liked working with you.
If you’re curious about how these surveys shape our coverage, check out this Extra Crunch Editor-in-Chief interview. Eric Eldon said with Scott Tong, “The pandemic has shown why product and brand design must go hand in hand. “