Day 2 exchange surge kicks Robinhood action into memes territory – TechCrunch
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Hello and welcome to Daily Crunch from August 4, 2021. It’s been hectic: Robinhood’s stock has lost its mind. Facebook has driven another part of the internet mad. And a new unicorn wants to go public? It was a great day for tech news.
But before we begin, we’re excited to announce that TechCrunch is launching another newsletter! This Week in Sarah Perez’s Apps kicks off this Saturday morning August 7 and is the place to go for all the great news from your apps. Make sure to register here. – Alexis
The Top 3 TechCrunch
- Robinhood’s stock is doing crazy things: Robinhood users were involved in the GameStop and AMC trading frenzy earlier this year. So it was perhaps inevitable that Robinhood’s own stock would be caught in a similar updraft. That’s what happened today, with shares of the new public fintech company soaring well above its IPO price. So much for Robinhood’s public offer being disappointing!
- Human Interest is now a unicorn, wants to make public: With a new $ 100 million round built from bricks of silver sourced from both TPG and SoftBank, Human Interest’s SMB 401 (k) service is now worth $ 1 billion. According to our own Mary Ann, it’s “aiming for a traditional IPO sometime in 2023, with executives saying the goal is to have” $ 200 million + in revenue at the execution rate before going public. “
- The improvement in the economy of neobanks could portend future IPOs: By checking the recent financial performance of a few neobanks, TechCrunch finds a lot to like about the numbers. There are a few laggards, but the huge global venture capital bet on the fintech banking model seems to be about to pay off.
Startups / VC
- Denver’s Reserve Trust recharges for corporate payments: It takes a bit of explanation, but it’s hard to move money around the world without a partner bank. Reserve Trust wants to help companies move their funds directly, without banking partners. And he just raised $ 30.5 million to do it. The issues with accepting and transferring money online are huge issues, proof of which you can see in this section of Daily Crunch most of the time it seems.
- ispace goes to the moon: Japanese space technology company ispace has raised a new $ 46 million Series C to help it undertake a number of lunar missions in the years to come. It turns out that three missions in three years. The new capital must support its second and third launches which should come – take off? – in 2023 and 2024.
- FullStory Raises $ 103 Million To Make Digital User Interfaces Less Silly: By tracking where users click in confusion, anger or frustration, FullStory wants to help businesses improve their various digital interfaces. If you hate the way some apps are built (and who don’t), FullStory could be great news. The Atlanta-based company is now worth $ 1.8 billion.
- More money to buy e-commerce brands: The global push to raise capital, buy e-commerce brands and unify them under one umbrella is a huge area of venture capital investment. Today’s turn is Suma Brands, which now has $ 150 million to make acquisitions. It turns out that the new capital is mostly debt.
- tabby raises $ 50 million Series B for BNPL’s work in the Middle East: We have a new purchase now, pay later for yourself today. This time it’s tabby, which is based in Dubai and focuses on its region. Global Founders Capital and STV led the funding round, which also included a host of other venture capital firms like Mubadala Investment Capital and Raed Ventures.
- Work-Bench closes a new $ 100 million fund: New York-based Work-Bench has raised a new fund to invest in SaaS companies. In a world of mega-funds and billion-dollar transactions, the business remains smaller than it likely could have grown. (It also dropped some research on the New York tech scene that I’m chewing on.)
- To round out our startup coverage, if you’re a startup and want to learn more about the world of PR, we had a few communication pros on the Equity podcast this week. Connect here.
What Square’s Acquisition of Afterpay Means for Startups
In his first column since returning to TechCrunch, reporter Ryan Lawler considered the potential ripples that Square’s purchase of Afterpay could send across the pond to buy now, pay startups later.
For commentary and perspective, he interviewed:
- Dan Rosen, Founder and General Partner, Commerce Ventures
- Jake Gibson, Founding Partner, Better Tomorrow Ventures
- TX Zhuo, partner, Fika Ventures
- Matthew Harris, Partner, Bain Capital Ventures
Investors he spoke to agreed that deferral of payments helps boost e-commerce, “but issues of scale and long-term margins look slim for BNPL startups,” Ryan reports.
(Extra Crunch is our membership program, which helps founders and startup teams move forward. You can register here.)
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