Daily Archives: July 26, 2021

News: No new Galaxy Note this year as Samsung’s foldables gain S Pen functionality

Samsung sent out invites for its August 11 Unpacked event last week. While it’s clear this is going to be packed (somewhat ironically) even by the company’s standards, the event may well be as notable for what it doesn’t include. Namely, a slew of rumors have pointed to Samsung skipping its annual Galaxy Note update.

Samsung sent out invites for its August 11 Unpacked event last week. While it’s clear this is going to be packed (somewhat ironically) even by the company’s standards, the event may well be as notable for what it doesn’t include. Namely, a slew of rumors have pointed to Samsung skipping its annual Galaxy Note update.

In a blog post today, the company’s president and head of Mobile Communications Business, TM Roh, writes, “Instead of unveiling a new Galaxy Note this time around, we will further broaden beloved Note features to more Samsung Galaxy devices.” The language isn’t entirely clear what that means for the future of Samsung’s beloved – if occasional erratic – phablet. No Note this event? This year? This … ever?

Samsung offered TechCrunch the following clarification, “We will not be launching new Galaxy Note devices in 2021. Instead, Samsung plans to continue to expand the Note experience and bring many of its popular productivity and creativity features, including the S Pen, across our Galaxy ecosystem. We will share more details on our future portfolio once we are ready to announce.”

Early rumors chalked the lack of a new Note up to supply chain problems that have persisted throughout much of 2020 and 2021. But further speculation has left many wondering whether the company may finally be sunsetting the Galaxy Note series on the eve of its 10th anniversary. Is it possible that the pioneering phablet has run its course, especially as other Samsung flagships get larger and siphon off its biggest features?

What’s clear is that some of the devices announced on the 11th will follow in the footsteps of the Galaxy S21 and bring Note-like features including S-Pen functionality. Likely this means at least the Galaxy Z Fold, confirming earlier rumors that the foldable would be the latest Galaxy device to blur the line between it and the Note. Presumably this also means a further reinforced display for the product. Recent leaks point to a carrying case with a pen holster, rather than baking the slot directly into the Fold’s already complicated design.

“I hope you’ll join us as we debut our next Galaxy Z family and share some foldable surprises — including the first-ever S Pen designed specifically for foldable phones,” Roh writes. The executive also promises “even more refined style, armed with more durable, stronger material” on the new Galaxy Z Flip, while also confirming the arrival of a new Z Fold.

Rounding out the news is a reference to the One UI Watch that appears to confirm that the latest Galaxy Watch will also make a cameo at the upcoming Unpacked.

News: Daily Crunch: Accused January 6 insurrectionist must use face to unlock laptop, orders judge

Hello friends and welcome to Daily Crunch, bringing you the most important startup, tech and venture capital news in a single package.

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.

Hello and welcome to Daily Crunch for July 26, 2021. Tech news got off to a cracking start this week after the Chinese government spent the weekend rolling out a new regulatory framework for the myriad edtech startups in the country. The Ant IPO was really just the start of the recent blizzard of changes concerning how China’s government runs its economy. The food delivery market was also impacted recently, along with Tencent Music. I noodled a bit here on what the situation may mean for the country’s startups. — Alex

The TechCrunch Top 3 (or so)

  • Bezos wants U.S. space contracts: After retired U.S. billionaire Jeff Bezos recently went up to zero-g for a few minutes, much snark concerning the wealthy spending their fortunes on a vanity space race was tweeted. The flip of that argument is that there’s real-world applications for all the money that Bezos, Branson and Musk are spending. In this case, Bezos is willing to cut the price of Blue Origin’s lunar lander project just to get access to a NASA contract. This is either a neat way to save taxpayer money or some weird sort of corporate bribe. Your call on that one.
  • Box wades into the signature wars: The other month, Box, the former startup darling, dropped $55 million on an e-sig company. Now Box is rolling out Box Sign to all its customers for free. The e-sig market is full of big players (DocuSign) and smaller entities (PandaDoc). To see Box offer its e-sig service to existing business customers for no cost means that the software capability is becoming more table stakes than standalone product. Startups take note.
  • A new alt-food unicorn: NotCo makes plant-based milks and meats. It just carved itself a fresh slice with a $235 million Series D that values the company at $1.5 billion. We’re highlighting this round because it underscores the amount of capital and, we presume, demand that alternative food products are attracting today. What was a dream just a few years ago is building big startups and even some public companies.
  • Keep your password, but show your face: We don’t often wade into the nuances of the Fifth Amendment, but a judge’s order out of D.C. caught our eye. Alleged insurrectionist Guy Reffitt was arrested three weeks after the January 6 Capitol riot and faces five federal charges. The FBI seized his laptop, which was password-protected. However, prosecutors said it could be unlocked using Reffitt’s face. The government used a “loophole in the Fifth Amendment,” TechCrunch’s Zack Whittaker writes, to compel the use of biometrics to open a Windows laptop.

Startups/VC

Kicking off our startup news today, make sure you check out this profile of Olumide Soyombo, a Nigerian angel investor who just put together a new fund. Soyombo’s brand-new firm, which he’s dubbed Voltron Capital, intends to invest all over Africa. It’s a potentially huge market for startups and venture capital, so expect more stories like this. How did it come to be? We’re sure that the check that Soyombo wrote to PayStack before Stripe bought it had something to do with it.

As we head into our regular digest of recent funding rounds, one startup sector that is not struggling to attract capital is facial recognition. Sure, you probably find it creepy that companies and agencies are tracking your face without your consent, but that isn’t stopping the financial class from pumping funds into the companies that comprise the facial recognition market. Zack Whittaker has the story here.

  • Faster protein sequencing is coming: That’s the news underneath Glyphic Biotechnologies’ new $6 million raise. The company’s tech could massively reduce the time it takes to sequence a protein, possibly unlocking all sorts of things in the health world.
  • Amazon-backed D2C beauty startup raises more: MyGlamm, an Indian direct-to-consumer company, has added to its capital base to the tune of $47.8 million. The company previously raised a $23.5 million Series C. Now it has lots more capital. Beauty is a huge market; D2C is a popular GTM model. And investors are willing to fund growth. That’s the story here.
  • Embedded fintech is hot: The embedded fintech space — when “complicated, but also commoditized, aspects of financial services are built and wrapped in an API for anyone else to implement in their own products,” per our own Ingrid Lunden — is attracting new capital. This time it’s Solarisbank, a Berlin-based player, which is buying a competitor, Contis, to go along with its new $1.65 billion valuation.
  • Speaking of embedded fintech, Sila raised money: Yes, we have more on the world of fintech APIs. Sila, a “banking and payment platform,” TechCrunch wrote, just raised a $13 million Series A. The Portland, Oregon-based company was founded in 2018 and has raised $20 million to date.
  • Queenly raises more: A TechCrunch favorite from the most recent Y Combinator batch, Queenly has raised a seed extension (Seed 2? Early Series A? You can use whatever term you wish!) from Andreessen Horowitz. The company was light on growth details, aside from noting a 20% rise in dresses on its platform since February. The startup is akin to a StockX for formalwear.
  • Today’s SoftBank investment is Embark Veterinary: While it is often fun to recall some of the more exotic SoftBank investments — RIP Zume — Embark Veterinary wants to use DNA testing to help pets live longer. This we will not mock. As we own dogs, and dogs are very good. The $75 million in Series B values Embark at around $700 million.

Data-driven iteration helped China’s Genki Forest become a $6B beverage giant in 5 years

Many Extra Crunch readers will not have heard of China’s fastest-growing bottled beverage company: Genki Forest is a direct-to-consumer startup that started selling its sodas, milk teas and other products just five years ago.

Today, its products are available in 40 countries and the company hopes to earn $1.2 billion in 2021. After closing its latest funding round, Genki Forest is valued at $6 billion.

Industry watchers frequently compare the upstart to giants like PepsiCo and Coca-Cola, but founder Binsen Tang comes from a tech background, having funded ELEX Technology, a social gaming company that found success internationally.

“China doesn’t need any more good platforms,” Tang told his team in 2015, “but it does need good products.”

Leveraging China’s robust distribution network, lighting-fast manufacturing capabilities and a vast pool of data that enables holistic digitization, Genki Forest sells more than 30% of its products online.

“Everything feels right about the company,” said VC investor Anna Fang. “The space, the founder, the products and the back end … they exemplify the new Chinese consumer brand.“

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

Big Tech Inc.

Two quick notes today from the world of Big Tech companies:

  • Earnings season is upon us: Many, many major tech companies are reporting their financial performance in the next two weeks. TechCrunch will cover the key bits, even if we’re not a public-markets publication. Still, keep your eyes sharp as it’s going to be a deluge of numbers.
  • The EV market is still raising huge blocks of capital. EV truck company Rivian recently added $2.5 billion to its coffers, and Lordstown got a cash infusion (bailout?) that should keep it on the roads.

TechCrunch Experts: Growth Marketing

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Are you all caught up on last week’s coverage of growth marketing? If not, read it here.

TechCrunch wants you to recommend growth marketers who have expertise in SEO, social, content writing and more! If you’re a growth marketer, pass this survey along to your clients; we’d like to hear about why they loved working with you.

Community

Join TechCrunch Managing Editor Danny Crichton for a Twitter Spaces event tomorrow, July 27, at 3:30 p.m. PDT/ 6:30 p.m. EDT. Danny will be joined by Seth Levine, the co-author of “The New Builders: Face to Face with the True Future of Business,” who will stick around for a Q&A after a chat about the book.

TechCrunch Disrupt $99 early-bird passes end Friday

Attention: $99 and under early-bird passes will disappear this Friday, July 30. Make sure you book your pass today and join the original startup conference. Disrupt delivers the best content, learning and networking opportunities for anyone interested in startups and tech. See you there!

News: iRocket to begin rocket engine testing at NASA’s Marshall Space Flight Center

Reusable rocket startup iRocket has entered into a new partnership with NASA in its quest to reach commercialization in just two years. The partnership will give iRocket access to testing facilities and engineering support, chiefly at the NASA Marshall Space Flight Center in Huntsville, Alabama. The company is hoping that it will conduct its first

Reusable rocket startup iRocket has entered into a new partnership with NASA in its quest to reach commercialization in just two years.

The partnership will give iRocket access to testing facilities and engineering support, chiefly at the NASA Marshall Space Flight Center in Huntsville, Alabama. The company is hoping that it will conduct its first rocket engine test — an on-the-ground engine firing test — at the Huntsville site in September.

iRocket is earmarking $50 million over the next five years for the testing and development of its reusable engines and launch vehicle. Access to NASA facilities also means access to test stands — crucial infrastructure that provides controlled conditions for engine testing. iRocket will be able to conduct vacuum testing (which simulates space conditions) at the Glenn Research Center in Ohio and sea level testing at Marshall.

“We’re engaged in very intimate discussions, all the way at the center level, at Marshall Space Flight Center,” iRocket CEO Asad Malik said in a recent interview with TechCrunch.

The engines in question will eventually power iRocket’s inaugural Shockwave launch vehicles, fully reusable, autonomous small launchers capable of carrying payload with a maximum size of around 300 kg (661 lbs.) and 1,500 kg (around 3,300 lbs.). Manufactured via 3D printing, the engines will be powered by methane and liquid oxygen. “Methane is going to be the fuel of choice for deep space missions,” Malik said.

The New York-based startup is also aiming to make the engines hypersonic capable, an ambitious goal. But iRocket has ambitious plans. Malik wants to turn the company into the premier supplier for both reusable rocket engines and the rockets themselves. Because it’s designing both rocket stages to be reusable as well — a striking difference between it and other rocket developers — Malik said the company could one day not only launch satellites and cargo missions, but also clear space junk or retrieve experiments for biotech companies.

Malik pointed out that the sale of Aerojet Rocketdyne to Lockheed Martin — which is still under review by the Federal Trade Commission — is going to leave a gap in the market. “That’s going to open up the U.S. without an independent rocket supplier at a time when Congress is really pushing hard for us to move away from foreign-bought parts,” he said. “So it’s an opportunity for us to work with the government, the Pentagon, NASA and other partners to develop this next-generation space propulsion capability that we need.”

News: Tesla’s quarterly profit surpasses $1 billion

Tesla reported Monday an eye-popping $1.14 billion in net income in the second quarter, results that blew past analysts expectations and marked the first time the company’s quarterly profit (on a GAAP basis) has passed the three-comma threshold. The results pushed shares up more than 2.2% in after-hours trading. Tesla was able to beat expectations

Tesla reported Monday an eye-popping $1.14 billion in net income in the second quarter, results that blew past analysts expectations and marked the first time the company’s quarterly profit (on a GAAP basis) has passed the three-comma threshold. The results pushed shares up more than 2.2% in after-hours trading.

Tesla was able to beat expectations and log its eighth straight quarter of profitability even as it grappled with supply chain challenges and lost money from its bitcoin investment. Operating income was $1.3 billion, which increased year-over-year from $327 million, due to volume growth and cost reduction, the company said. Those positive results were partially offset by an increase in operating expenses, supply chain challenges, lower regulatory credit revenue and a bitccoin-related impairment of $23 million.

Supply chain challenges, notably the global shortage of semiconductor chips and congestion at ports, were two factors that affected its business in the second quarter. Tesla noted that it will continue to impact operations and its rate of delivery growth in 2021.

“With global vehicle demand at record levels, component supply will have a strong influence on the rate of our delivery growth for the rest of this year,” the company said in its shareholder deck released Monday.

Tesla reported revenue of $11.95 billion, a nearly 100% increase from the $6.04 billion it generated in the second quarter of 2020. Revenue in the second quarter was also higher than last quarter’s total of $10.38 billion. Analysts surveyed by Factset estimated $11.4 billion in revenue and $600 million in profit.

Tesla’s automotive revenue was $10.2 billion in the second quarter. Notably, only $354 million of that automotive revenue came from the sale of regulatory credits, which is 17% lower than last quarter and the lowest in the past four quarters. Meanwhile, Tesla’s automotive gross margins popped to 28.4%, the highest it has ever been.

Tesla reported that it earned $1.14 billion in net income compared with $104 million in net income in the same period last year. That record-setting number is nearly three times more than last quarter’s net income of $438 million. Tesla’s adjusted EBITDA in the second quarter was $2.24 billion in the quarter, up from $1.21 billion in the same year-ago period.

Quarter-end cash and cash equivalents decreased to $16.2 billion in the second quarter, according to Tesla, which said that decrease was driven mainly by net debt and finance lease repayments of $1.6 billion, partially offset by free cash flow of $619 million.

Earlier this month, Tesla reported its produced 206,421 vehicles in the second quarter. Of those, the company delivered 201,250 vehicles, nearly 9% more than the first quarter of 2021.

News: Citizen’s crime live streams are no substitute for local journalism

In May, the neighborhood crime watch app Citizen offered its user base $30,000 to track down a suspected arsonist on live video, only to discover that they’d sent a mob of civilians after the wrong guy. Now, Citizen is covertly hiring journalists to livestream on the app at crime scenes for $25 per hour through

In May, the neighborhood crime watch app Citizen offered its user base $30,000 to track down a suspected arsonist on live video, only to discover that they’d sent a mob of civilians after the wrong guy. Now, Citizen is covertly hiring journalists to livestream on the app at crime scenes for $25 per hour through third party websites. I’m tired.

When Citizen first hit the App Store in 2016, it was called Vigilante — it marketed itself as a platform to fight injustice with transparency, which might sound good in theory, but in practice, it deliberately encouraged users to seek out crime scenes to report them. Vigilante was removed from the App Store for violating a clause in Apple’s App Developer Review Guidelines that an app shouldn’t be “likely to cause physical harm from its use.”

Surely, this would be the end for the nascent platform. But like a cockroach after an apocalypse, the app chugged on. It rebranded itself as Citizen, added disclaimers that no one should interfere with a crime scene, re-entered the App Store, and continued to raise VC funding. Now, the app is like a crowd-sourced crime blotter — as its App Store page says, “Citizen may notify you of a crime in progress before the police have responded.” But this level of hyper-vigilance can fuel panic, rather than make people feel safe — not to mention that user-reported crime incidents might be incorrect at best, and racist at worst. The app pulls data from 911 calls, but not all information in those dispatches are verified, which can be cause for false concern.

But Citizen can only function if it has enough of a user base, and its attempts to corral civilians to use the app have gotten more and more desperate. According to SensorTower, the app hit a monthly download high in June 2020, in the wake of widespread Black Lives Matter protests. (So, as the country protested police brutality, 677,000 people responded by downloading a policing app). But the following month, just 207,000 people downloaded the app. Since then, growth has been pretty stagnant — 292,000 people downloaded Citizen in March 2020, and 283,000 people downloaded it in March 2021.

In June, the Daily Dot reported that one specific user named “Landon” was live streaming from multiple crime scenes in one day, attempting to interview witnesses and first responders — given how often he seemed to stumble upon these crime scenes, it seemed unlikely that he was just an enthusiastic app user. Yesterday, the New York Post reported on another user named “Chris” who live streamed on Citizen from six emergencies in one day. Citizen confirmed that both Landon and Chris were working for the app as members of its Street Team.

“Citizen has teams in place in some of the cities where the app is available to demonstrate how the platform works, and to model responsible broadcasting practices in situations when events are unfolding in real time. We believe these teams will ultimately help guide our users on how to broadcast in an effective, helpful and safe way,” a Citizen spokesperson told TechCrunch.

Citizen has had Street Teams since the app’s launch; a spokesperson said that they’ve never tried to hide this. But these jobs are not listed on the Citizen website. Instead, they’re listed by a third party recruiter called Flyover Entertainment on the JournalismJobs board without mention of Citizen. An NYU Journalism website shared a similar listing, which did include the Citizen name. Citizen confirmed to TechCrunch that both of these listings are for the app’s Street Team. Citizen pays $250 per day for a 10-hour shift in LA, and $200 per day for an 8 hour shift in NYC, which comes out to $25 per hour.

“Broadcast journalists have experience in broadcasting safely and responsibly. This is a requisite for our Street Team members,” said the Citizen spokesperson. When asked why these jobs were posted on third-party job boards, but not Citizen’s own website, the spokesperson reiterated that it was because Citizen specifically wanted to find journalists. However, it could presumably also find journalists on its own website.

Surveillance state vigilantism concerns aside, local news is dying, and Citizen is not built to be a substitute for neighborhood journalism. Sure, local newspapers report on crime too, and it’s not as though Citizen is doing something unprecedented by sending reporters to scope out crime scenes. But there’s a difference between reporting news and live streaming from a crime scene on a surveillance app that only discloses who is a paid worker and who is an average civilian when directly asked. For an app that is modeled on “increasing transparency,” these covert job postings don’t feel so transparent. Plus, for an infrequent freelance gig with no benefits or paid time off that requires established broadcasting skills, $25 per hour is a pretty bad rate.

Now, Citizen’s latest attempt at growth is a paid service for $19.99 per month called Protect, which lets users send their location and a livestream from their camera to a Protect Agent. Citizen says its Protect Agents include former law enforcement officers and 911 operators, who can send an “instant emergency response” in case of emergency. This sort of seems like paying to get a personal 911 operator, which, again, feels like a poor alternative to policing, an already poor system.

Maybe Silicon Valley-bred tech companies aren’t the answer to the United States’ centuries-long crises of police brutality, racial profiling, and surveillance. Maybe a better way to reduce crime is to ensure that all people have access to health care, jobs, and affordable housing. Who knows!

News: Duolingo boosts IPO price target in boon to edtech startups

Duolingo is now targeting a $95 to $100 per share IPO price range, up from $85 to $95 per share, or a gain of around 12% at the bottom and 5% at the top.

U.S. edtech company Duolingo released a revised IPO price range this morning, boosting its potential per-share value to $100 after initially targeting a range that topped out at $95 per share.

Per the unicorn’s SEC filings, Duolingo is now targeting a $95 to $100 per share IPO price range, up from $85 to $95 per share, or a gain of around 12% at the bottom and 5% at the top.

TechCrunch previously called the Duolingo debut a bellwether of sorts for the larger U.S. edtech ecosystem; if Duolingo can price and trade well, investors in private companies may be more willing to invest, given a more proven and attractive exit market. On the other hand, if Duolingo prices weakly or trades poorly, the company could place a wet blanket atop the startup edtech world.

The fact that Duolingo is raising its IPO price range indicates that we are more likely on the path for a strong offering than a weak one.

For edtech companies that have hit unicorn status — like Masterclass, Course Hero, Quizlet and Outschool — it’s good news. For reference, those companies have raised $461.4 million, $97.4 million, $62 million and $130 million, respectively, per Crunchbase data.

What’s Duolingo worth?

The terms of the company’s IPO have not changed, aside from its proposed price. So, Duolingo is still selling 3.7 million shares in its debut, and some 1.41 million shares will be sold by existing equity holders. The company’s underwriters also reserved their right to buy 765,916 shares of the company’s stock at IPO price in the 30 days following its debut.

At the upper and lower bands of the company’s IPO price, its simple valuation excluding underwriter shares now lands between $3.41 billion and $3.59 billion. Inclusive of its greenshoe offering, those numbers rise to $3.48 billion and $3.67 billion.

Recall that when private, Duolingo’s November 2020 Series H valued the company at just over $2.4 billion. So long as Duolingo prices in its range, it will provide investors with a nice bump in the value of their investment. Duolingo was valued at just $1.6 billion in mid-2020, indicating that it has more than doubled in value since that investment.

News: How to prepare for M&A, your most likely exit avenue

Despite the headlines about billion-dollar M&A transactions, record IPOs and the rapid growth of SPACs, small deals will continue to be the most likely exit for the vast majority of tech startups.

Ben Boissevain
Contributor

Ben Boissevain has 30 years of corporate finance experience at firms including White & Case and Barclays Bank, and 20 years of experience in the tech sector.

Despite the plentiful headlines about mega billion-dollar M&A transactions, record IPOs and the rapid growth of SPACs, small deals will continue to be the most likely exit for the vast majority of tech startups. In the over 30 years I’ve worked on M&A at White & Case, Barclays and my current firm Ascento Capital, I have seen too many startups that are not prepared for an exit via a merger or sale. This article will provide specific recommendations on how to prepare your startup for M&A.

While it is good to strive for a billion-dollar-plus sale, a successful IPO or a SPAC deal, it is practical to prepare your startup for a smaller transaction.

Global M&A hit record highs in the second quarter with a total deal value of $1.5 trillion, but smaller transactions vastly outnumber mega billion-dollar deals. The U.S. saw a total of 16,672 deals in the year ended June 31, but only 583, or 3% of that number, were valued at more than a billion dollars (FactSet). The IPO market is healthy again, but M&A still represents 88% of exits: So far this year, there were 503 IPOs and 5,203 deals, according to the CB Insights Q2 2021 State of Venture Report. After the SEC announced in early April that it was considering new guidance on SPAC IPOs, the rate of new SPAC issuances fell by around 90%.

While it is good to strive for a billion-dollar-plus sale, a successful IPO or a SPAC deal, it is practical to prepare your startup for a smaller transaction.

Here are a few recommendations that will prepare your startup for an M&A exit:

Track M&A in your subsector

Set up an alert on Google News for M&A activity in your subsector. For example, if your startup is in the IoT subsector, search for “IoT acqui” and this will pick up news stories on acquisitions in the IoT space. Save the search so you can go to Google News on a regular basis. Also track your closest competitors on Google News, particularly to see who is selling their company.

Prepare a list of likely acquirers

Prepare a list of the companies or firms most likely to buy your startup. This list should include domestic and international companies, businesses in non-tech industries, private equity firms and their portfolio companies, as well as VC-backed companies. Track these likely acquirers on Google News as well.

Consider executing a parallel track

Consider approaching the top 10 likely acquirers when you are raising the next round of capital. If your startup gets M&A offers and VC term sheets at the same time, this will provide your board of directors choices on the path ahead. Knowing the M&A activity in your startup’s subsector and the 10 most likely acquirers will impress VCs and increase the chances of being funded.

News: Glyphic Biotechnologies raises $6M to accelerate protein sequencing by orders of magnitude

The whole human proteome may be free to browse thanks to DeepMind, but at the bleeding edge of biotech new proteins are made and tested every day, a complex and time-consuming process. Glyphic Biotechnologies accelerates the critical but slow sequencing step, potentially cutting drug development times down by a huge amount, and the startup just

The whole human proteome may be free to browse thanks to DeepMind, but at the bleeding edge of biotech new proteins are made and tested every day, a complex and time-consuming process. Glyphic Biotechnologies accelerates the critical but slow sequencing step, potentially cutting drug development times down by a huge amount, and the startup just raised a $6 million seed to bring its clever solution to market.

Proteins are at the heart of many new treatments and products; the ubiquitous and infinitely varied chains of amino acids twist into shapes that interact with cells, substances in the body, and other proteins, doing everything from interpreting DNA to controlling access to secure areas (“sorry, no potassium allowed”).

In the drug discovery and biotech world, proteins represent unlimited possibility — the right one could clamp onto cancer cells, facilitate natural healing processes, or prompt the creation of helpful substances. But finding and testing novel molecules is not easy — and a big part of that is sequencing, which confirms the exact makeup of the protein you’re trying to test.

Right now there are several large companies doing good business in the protein discovery world, and generally the process involves identifying the amino acid at the end of the protein chain, then snipping it off, identifying the next one, and so on until you’ve done the whole thing.

The trouble with this approach is that the protein’s shape or the molecular properties of the next amino acid in line can interfere with the process of binding to and identifying the one on the very end. As a result there’s a certain amount of uncertainty and a lack of unreliability inherent to the process.

Glyphic Biotechnologies changes that by adding a step where the target amino acid is detached first and then tethered nearby using a novel molecule called ClickP developed by one of the co-founders. A single stationary amino acid attached to a known molecule is much, much easier to identify, and when it’s done, the process repeats as before.

It’s briefly stated but the advance is significant. Current techniques in the antibody discovery space produce and inspect on the order of tens of thousands of proteins per week per (very expensive) machine. It sounds like a lot but with proteins essentially innumerable, it’s just a drop in the bucket. Even running 24/7 this rate doesn’t come close to satisfying demand.

Glyphic’s approach, utilizing ClickP and single-molecule microscopy (like that used by DNA sequencing giant Illumina), should be capable of millions to tens of millions per week, possibly climbing to billions in time. Even at the most conservative estimate you’re talking about orders of magnitude in improvement — those tens of thousands in the other techniques include lots of (perhaps mostly) repeat or junk information due to their use of B cell cultivation to produce the antibodies in question.

Illustration of the Glyphic process at a molecular level.

Image Credits: Glyphic Biotechnologies

Not only that, but because the ClickP process avoids the problem of interference from the next amino acid in the chain, it has way, way higher specificity and confidence. So you wouldn’t just be sequencing a hundred or a thousand times as many proteins, you’d be far more sure about the results.

At first Glyphic would be processing samples sent to them, but ultimately their tech could live in other labs as their competitors do now. Going from service to hardware sales and support is the current roadmap.

If everything works as advertised, Glyphic could be the new standard in protein sequencing just as demand skyrockets in the biotech world. To do so, though, it needs just a bit more time in the incubator.

The process they pioneered was the result of work done by co-founders Joshua Yang (CEO) and Daniel Estandian (CTO) at the lab of MIT’s Ed Boyden (on the team as “scientific founder”).

CTO Daniel Estandian, left, and CEO Josh Yang. Image Credits: Glyphic Biotechnologies

Yang explained that what stands between them and potential industry dominance is a mere matter of chemical engineering.

“My co-founder [Estandian] developed ClickP himself. The chemistry works,” he told me. “But as a spinout of an academic lab, we didn’t develop all 20 binders, because it would have bankrupted the lab. This isn’t an ‘off-the-shelf’ molecule.”

These binders are a bit like adapters that make the process work for each of the 20 amino acids. It takes time and money to engineer them, so they decided to show the system off with a handful first in order to get the cash to make the rest. “It’s really just about putting the time into getting them out there,” said Yang.

The $6.025 million seed round should finance the company through this early stage as it builds its platform. It was led by OMX ventures (which previously invested in 10X Genomics and Twist Bioscience), with participation from Osage University Partners, Wing VC, Artis Ventures, Cantos Ventures, Civilization Ventures, and Axial VC, and has an angel investor in Mammoth Biosciences CEO Trevor Martin.

Glyphic will be making its first home at Bakar Labs, the freshly inaugurated new Berkeley biotech incubator. There it will stay until it’s ready to take the next big step, likely hardware manufacturing next year on the back of an A round to be raised then. 2022 should then also see the company’s first paid services. And the antibody market, as large as it is, is only the beginning.

“Antibodies are just a starting point, as numerous applications can benefit from protein sequencing,” Josh explained in an email after we spoke. “Another high value area is in industrial biotechnology, where protein-sequencing-based screening of evolved enzymes can help identify enhanced or novel functions (e.g., better laundry detergents, waste-water treatment). Development of diagnostic tests would also benefit because, the more proteins you can sequence and identify in a sample set, the increased likelihood you can identify rare yet important biomarkers and/or develop a robust panel of biomarkers that together can detect or predict disease.”

A company like Glyphic may seem like a perfect target to get snapped up by one of the more deep-pocketed competitors out there, but Yang said they’re confident enough to ride it out.

“The activity in this space is insane. My co-founder and I really want to be the next Illumina or 10X Genomics — we really want to be that leader in proteomics.” And unless the competition has a few cards hidden up their sleeves, Yang’s ambition seems like a distinct possibility.

News: Amazon-backed Indian D2C beauty brand MyGlamm raises $71 million

MyGlamm, a direct-to-consumer beauty brand in India that sells most of its products through its own website, app and retail touch points, said on Monday it has raised $71.3 million in a financing round as the Mumbai-headquartered firm looks to scale its business across the South Asian market. The startup had raised $23.5 million in

MyGlamm, a direct-to-consumer beauty brand in India that sells most of its products through its own website, app and retail touch points, said on Monday it has raised $71.3 million in a financing round as the Mumbai-headquartered firm looks to scale its business across the South Asian market.

The startup had raised $23.5 million in its four-times subscribed Series C financing round from Amazon, Ascent Capital, Wipro in March this year. On Monday, it said it has added an additional $47.8 million as part of the round — which is now closed.

Accel led the investment in the new tranche while existing MyGlamm investors — Bessemer Venture Partners, L’Occitane, Ascent, Amazon, Mankekar family, Trifecta and Strides Ventures — also participated, Darpan Sanghvi, founder and chief executive of MyGlamm, told TechCrunch in an interview.

Sanghvi started MyGlamm in 2017 after pivoting his previous venture. He recalled the struggle he faced raising money for a direct-to-consumer brand, which were not as popular in the world’s second largest internet market just five years ago. To make matters worse, MyGlamm was also among the last direct-to-consumer startups to kick off its journeys at the time.

MyGlamm website

The startup today operates as a house of brands in the beauty and personal care spaces. “We operate across makeup, skincare, haircare, bath and body, and personal care. Unlike other brands, we have been able to successfully build a master brand across categories,” he said over a video call.

“The reason we have been able to build this is because we are truly direct to consumers. This allows us to communicate very directly with them,” he said, adding that most other firms in the industry are too reliant on third-party marketplaces for their sales.

He attributed the recent growth of the startup, which sells over 800 SKUs across categories (up from 600 in March), to its newfound user acquisition strategy. In August, the startup acquired POPxo, a startup that has built a community around content, influencers and commerce and serves over 60 million monthly active users.

“The content to the commerce engine has become our biggest moat,” he said. “We are acquiring 250,000 new users each month without spending any real money.”

POPxo, which is run by Priyanka Gill, engages with nearly 300,000 users each month, gathering their feedback and ideas for new products. Gill said in a video call that “in this line of business, CAC (cost of customer acquisition) is the game and POPxo has solved this problem,” she said, adding that POPxo, which is run like a fairly independent business, is on track to reach over 100 million users by March next year.

The startup also has 15,000 point-of-sale touch points in the physical world across India. The physical presence, which accounts for 40% of the revenue it generates today, “has been crucial to scale in the country,” Sanghvi said.

“We believe that the time is ripe for building out digital first CPG brands with a deep focus on content-to-commerce,” said Anand Daniel, Partner at Accel, in a statement.

“COVID has only cemented this belief. The unique combination of content coupled with a compelling product line gave us the conviction to lead this round in MyGlamm. We are excited to partner with Darpan, Priyanka and the MyGlamm team and look forward to building out the next generation CPG giant,” he said.

The startup plans to deploy the fresh funds to expand its product development, data science and technology research teams. It is also working to expand its offline presence and broadening the digital reach of POPxo.

The new investment comes at a time when Indian startups are raising record capital and a handful of mature firms are beginning to explore the public markets. Last week, Tribe Capital’s investment crowned BlackBuck as India’s 16th unicorn this year, compared to 11 last year and six in 2019. Food delivery startup Zomato made a stellar stock market debut last week and financial services firms MobiKwik and Paytm have also filed for their IPOs. Insurance aggregator service PolicyBazaar and online beauty e-commerce firm Nykaa are also expected to file their paperworks for IPO in the coming weeks.

News: Polestar to double its retail stores as it seeks to ramp up EV sales

Polestar plans to launch in nine more markets this year, doubling its global presence as it seeks to sell more of its electric sedans.

Polestar plans to launch in nine more markets this year, doubling its global presence as it seeks to sell more of its electric sedans.

The company, which is the electric performance vehicle brand under Volvo Car Group, said it is also planning to double the number of retail stores to 100 locations and add more service centers by the end of the year. Some of the retail locations will be temporary pop-up stores. The Swedish automaker has more than 650 so-called “service points” in Polestar markets and wants to exceed 780 by the end of 2021.

This pace of expansion doesn’t appear to be waning. Polestar CEO Thomas Ingenlath said in a statement that the company aims to expand at a similar rate in terms of new markets in 2022. “This continued pace, combined with new retail concepts, will support our goal to exceed our owners’ expectations,” he added.

Today, Polestar has one primary product: the all-electric Polestar 2. But it has plans to add more to its portfolio in the coming years. The automaker announced in June that it would manufacture its first all-electric SUV in the United States. The SUV, which is called the Polestar 3, will be assembled at a plant shared with Volvo Cars at a factory in Ridgeville, South Carolina.

The Polestar 3 follows the all-electric Polestar 2 sedan and the hybrid grand tourer Polestar 1. Production of Polestar 3 is expected to begin globally in 2022.

As Polestar scales up, it’s keen to find new ways to reach customers. The main strategy is to add more retail stores and expand in existing markets or into new ones. The company said Monday it is also experimenting with a new concept called Polestar Destinations. These “destinations” act just likes its “Polestar Spaces” stores, but are larger and located outside of urban centers. These destination stores will also act as centers where customers can pick up their vehicles, which can be ordered and paid for online.

The company is also adding 60 more test drive locations by the end of 2021 to provide additional access to Polestar 2 vehicles.

All of this expansion is being supported by an influx of $550 million that Polestar raised in April in an external round led by Chongqing Chengxing Equity Investment Fund Partnership, Zibo Financial Holding and Zibo Hightech Industrial Investment. SK Inc., the South Korean global conglomerate, and a range of other investors also participated in that round.

While this was Polestar’s first external round, the company suggested at the time that it wouldn’t be the last.

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