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In one of India’s largest exits, Swedish media giant MTG buys PlaySimple for $360M – TechCrunch
Hello and welcome to Daily Crunch for July 2nd. We’re heading for a vacation weekend here in the United States, so you can imagine the tech news has slowed down. This is not the case, as we will see shortly. Looking ahead, TC Early Stage 2021: Marketing & Fundraising will take place next week and Disrupt is just around the corner. Get the hype! – Alexis
The Top 3 TechCrunch
- When PSPCs attack: The United States Department of Justice is investigating Lordstown Motors, the ailing electric vehicle company that went public through a SPAC. Critics of the company drilled holes in the story it told before it went public, and the company’s SPAC deck turned out to be somewhat out of touch with reality. It turns out the company needs more money, although it has told investors it won’t. Oops.
- China v. Didi c. American investors: Sticking to the theme of struggling businesses, Chinese carpooling giant Didi is in hot water with its own national regulators. The company has been asked to suspend registration of new users, pending a cybersecurity review. Fair days after it became public in the United States. Phew.
- IBM president steps down: Jim Whitehurst, who joined IBM through his Red Hat deal, is out. His tenure as president of the company lasted 14 months. Details were light on its release, for Ron Miller Yeah.
Startups / VC
The news of today’s startups has a strong non-American bias. That’s because almost everyone in the United States took up most of the day, regardless of what their boss thought was going on. The rest of the world was however still busy:
- Licious raises a tasty $ 192 million round: The Bangalore-based meat and seafood e-commerce player has now raised thanks to a F series. A few years ago, we would have joked that the F in the F series meant “has not been released to the public,” but that’s no longer the case. Why do not raise an F series when the money is so cheap? The company is now worth more than $ 650 million, reports TechCrunch.
- MTG buys PlaySimple for $ 360 million: Why are investors betting so much on the Indian startup ecosystem? Rising output values, perhaps. TechCrunch noted that the sale of India’s PlaySimple to the Swedish gaming giant was “one of the biggest releases in the Indian startup ecosystem.”
- Tiger invests $ 40 million in a Nigerian neobank: It’s a big day for FairMoney, a Nigerian startup that originated from providing credit to consumers. It’s also another turn for African fintech, a sector that has felt quite active lately.
3 guiding principles for CEOs posting on Twitter
Have you heard of the CEO who made misleading statements about a fundraising cycle and was sued by the SEC? What about this pharmaceutical executive whose taunts at a former secretary of state led to a 4.4% drop in the Nasdaq Biotechnology index?
In case it’s not clear: Startup executives are held to a higher standard when it comes to what they post on social media.
“Reputation and goodwill take a long time to build and are difficult to maintain, but it only takes one tweet to destroy it all,” says Lisa W. Liu, senior partner at The Mitzel Group, a firm of San Francisco-based attorneys who serve many startups.
To help his clients (and Extra Crunch readers) stay out of trouble, Liu has six basic questions for itchy tech executives on Twitter.
And if the answer to any of them is “I don’t know”, don’t post.
(Extra Crunch is our membership program, which helps founders and startup teams move forward. You can register here.)
Big Tech Inc.
Today’s Big Tech news is a mixed bag, but fun. And each story has a strong Californian hook. Let’s start:
- GM invests in a lithium mining project in California: Why? Batteries. Lithium is needed to make batteries. No batteries, no electric cars. In this case, the project is actually pretty neat, having a strong connection to the Salton Sea geothermal field near Los Angeles in the southern part of the state. The geothermal field will provide electricity and materials. So maybe the carbon footprint before driving electric cars will be a bit more sustainable in the future.
- Twitter is testing more catchy disinformation labels: Twitter, a Californian company, makes its misinformation labeling a little more remarkable. It’s funny to see social media companies making tougher warnings at the same time as Google makes ads blend better into its organic results.
- A Dutch court will hear another Facebook privacy lawsuit: A few Dutch nonprofits are suing Facebook for alleged “rampant collection of data from Internet users – arguing that the company does not have a proper legal basis for the processing,” TechCrunch summed up. This case seems as it might have a wide import, depending on how it shakes. Considering, you know, the amount of data collection that’s happening literally all the time, literally everywhere, online.
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