Yesterday, China ordered ride-hailing company Didi to stop adding new customers after regulators announced a cybersecurity review of the company’s operations.
At this point in time Didi’s share price has fallen by 5.3%. In today’s edition of The Exchange, Alex Wilhelm said the move wasn’t a complete surprise, but it “still puts a bad taste in our mouths” as the company went public days ago.
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When Didi filed for an IPO, it listed several potential pitfalls Chinese companies face when going public in the US, including “numerous legal and regulatory risks” and “extensive government regulation and oversight in their F-1” .
What does this news mean for other Chinese companies hoping to go public in the US?
We will be free on Monday 5th July for Independence Day. Thank you for reading and have a nice weekend.
Walter Thompson
Senior Editor, TechCrunch
@yourprotagonist
3 guiding principles for CEOs who post on Twitter
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Have you heard from the CEO who made misleading claims about a funding round and was sued? How about this pharma executive whose mockery of a former foreign minister caused the Nasdaq biotechnology index to drop 4.4%?
In case it’s not clear, startup leaders are of a higher standard when it comes to what they post on social media.
“Reputation and goodwill building takes a long time and is difficult to maintain, but it only takes one tweet to destroy it all,” said Lisa W. Liu, senior partner at The Mitzel Group, a San Francisco-based law firm that serves many startups.
To help her clients (and Extra Crunch readers), Liu has six basic questions for technical executives with itchy Twitter fingers.
And if the answer to any of them is “I don’t know,” don’t post anything.
The 2021 edtech avalanche has only just begun
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A report by Brighteye Ventures on the European edtech scene shows this year’s deal flow is on track to meet or exceed 2020 when remote instructions exploded.
According to Rhys Spence, head of research at Brighteye, the average transaction size is now $ 9.4 million, a threefold increase from last year. Still, “It’s interesting that we’re not seeing a huge surge in deal numbers,” he noted.
How Robinhood’s explosive growth rate came about
Credit: TechCrunch
The Robinhood trading platform has attracted enough users and activity to change the discussion about investing in retail – economists are likely to be debating the GameStop 2021 saga in the years to come.
After the company filed for IPO yesterday, Alex Wilhelm scoured Robinhood’s primary income statement to better understand how revenue went from $ 127.6 million in the previous year to $ 522.2 million in the first Quarter was scaled.
“These are numbers that we honestly don’t see often when companies go public,” says Alex. “300% growth is usually a metric before Series A.”
So where does all this income come from?
With soaring venture capital in the EU, will the region hold any future IPOs?
Credit: Nigel Sussman (opens in a new window)
Given the valuation gap between the U.S. tech markets and those overseas, it’s easy to see why some overseas startups would head to our shores when the time comes to go public.
However, Anna Heim and Alex Wilhelm found that a record spike in European venture capital activity this year is accelerating the pace of IPOs, and many of these companies are content to go public in their home markets.
To get a glimpse of where European investors believe they have an advantage, Anna and Alex interviewed:
- Franck Sebag, partner, EY
- David Miranda, Partner, Osborne Clarke Spain
- Yoram Wijngaarde, Founder and CEO, Dealroom
How VCs can get the most out of co-investing with LPs
Credit: Diana Ilieva (opens in a new window) / Getty Images
In a recent private equity survey, 80% of respondents said their co-investments with people outside of traditional VC firms outperformed their investments in PE funds.
Alternative investors are highly motivated and, since they seek higher returns than are generally available in the public markets, they are less risk averse. In return, they benefit from cheaper fee structures and build close connections to VCs, which increases the talent pool when building investment skills.
These relationships also have direct advantages for VCs, such as greater flexibility through diversification and consolidated decision-making power.
“With the right deal structure, deal selection and deal investigation, co-investors can significantly increase their returns,” says William Kilmer, Managing Partner of C5 Capital, who wrote an Extra Crunch article for VCs that is an alternative route is considering.
Dear Sophie: How can I bring my parents and my sister to the USA?
Credit: Bryce Durbin / TechCrunch
Dear Sophie,
My husband and I are both US permanent residents.
Given what we went through over the past year when we were isolated from loved ones during the pandemic, we would like to bring my parents and sister to the United States to be close to our families and to help with our children.
Is that possible?
– Symbiotic in Sunnyvale
This is how you break the advertising fog and choose a digital building platform
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Smart building products encompass everything from connecting landlords with tenants to managing construction sites.
Given their far-reaching business impact – and the novelty of many of these emerging technologies – choosing the right Digital Building Platform (DBP) is a challenge for most organizations.
Brian Turner, LEED-AP BD&C, has created a matrix to help decision makers identify the basic features and desired outcomes for the stakeholders.
“When it comes to the built environment, creating these comfortable, healthy, and enjoyable spaces requires new tools,” says Turner. “Choosing a solid DBP is one of the most important decisions that must be made.”
Demand curve: 7 ad types that increase click-through rates
Credit: Octavian Iolu / EyeEm (opens in a new window)/ Getty Images
A persistent problem with startups: With no one on the founding team having significant marketing experience, growth-related efforts are pro forma and generally unlikely to move the needle.
Everyone wants higher click-through rates, but creating ads that “get noticed” is a risky strategy, especially if you don’t know what you are doing. This guest post from Demand Curve offers seven strategies for increasing CTR that you can clone today and use in your own startup.
Here’s one: when customers talk about you online, ask if you can add a screenshot of their reviews to your advertisement. Testimonials are a form of social proof that increases conversions, and they’re especially effective when used in retargeting ads.
Earlier this week we published another post on optimizing email marketing for early stage startups.
We’ll have more expert advice on how to grow it shortly, so stay tuned.
To protect against data loss and misuse, the cybersecurity conversation needs to evolve
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Locking down data centers and networks against intruders is only one aspect of a company’s security responsibility. Cloud services, collaboration tools and APIs extend the security perimeter even further. In addition, the systems that are designed to prevent the misuse and mishandling of sensitive data often depend heavily on the better angels.
According to Sid Trivedi, partner at Foundation Capital and seven-time CIO Mark Settle, IT managers need to replace existing DLP frameworks with a new one that focuses on DMP – protecting against data misuse.
These solutions “will add more sophisticated self-defense mechanisms to databases, rather than relying on traditional security perimeter surveillance,” and many startups are already competing in this area.
source https://dailyhealthynews.ca/ceo-twitter-etiquette-lifting-click-through-rates-edtech-avalanche-techcrunch/
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