economy

Ethereum’s falling price splits the crypto community

Hello And Welcome Back To The Latest Edition Of All The Cryptos Are Getting Rekt Right Now. Crypto bloodbaths have become fairly common in 2018 — mainly because of the insane growth in 2017 — but we’ve not covered them all because they are so numerous and often include so-called ‘flash crashes’ or small drops, but the fall happening today is worth noting for several wider reasons. Primarily that’s because this is a major test for Ether — the token associated with the Ethereum Foundation that is the second largest cryptocurrency by volume — has been on a downward spiral with little sign of change. Ether, which is the preferred platform of choice for most developers building on the blockchain, is down nearly 17 percent over the past day. That’s erased billions of dollars in paper (crypto) va...

How Airbnb went from renting air beds for $10 to a $30 billion hospitality behemoth

Happy 10th anniversary Airbnb. When we first wrote about the company a decade ago, it was a spare website cobbled together by its founders for the low low price of $20,000. In the years since, the marketplace Airbnb created has radically transformed the rental landscape in cities, created an entirely new hospitality market and surged to a valuation of roughly $31 billion. We researched the number of airbeds sold every year because that’s how big we thought Airbnb could become. — Brian Chesky (@bchesky) August 12, 2018 As it prepares for an initial public offering in 2019, it’s worth a look back on how far the company has come, and how its founders’ vision for a new type of way to monetize unused apartment space for budget travelers has become the engine driving a new kind of travel and new...

AI training and social network content moderation services bring TaskUs a $250 million windfall

TaskUs, the business process outsourcing service that moderates content, annotates information and handles back office customer support for some of the world’s largest tech companies, has raised $250 million in an investment from funds managed by the New York-based private equity giant, Blackstone Group. It’s been ten years since TaskUs was founded with a $20,000 investment from its two co-founders, and the new deal, which values the decade-old company at $500 million before the money even comes in, is proof of how much has changed for the service in the years since it was founded. The Santa Monica-based company, which began as a browser-based virtual assistant company — “You send us a task and we get the task done,” recalled TaskUs chief executive Bryce Maddock — is now one of the main pr...

Walmart co-leads $500M investment in Chinese online grocery service Dada-JD Daojia

Walmart sold its China-based e-commerce business in 2016, but the U.S. retail giant is very much involved in the Chinese internet market through a partnership with e-commerce firm JD.com. Alibaba’s most serious rival, JD scooped up Walmart’s Yihaodian business and offered its own online retail platform to help enable Walmart to products in China, both on and offline. Now that relationship is developing further after Walmart and JD jointly invested $500 million into Dada-JD Daojia, an online-to-offline grocery business which is part owned by JD, according to a CNBC report. Unlike most grocery delivery services, though, Dada-JD Daojia stands apart because it includes a crowdsourced element. The business was formed following a merger between JD Daojia, JD’s platform for order from supermarket...

July sets a record for number of $100M+ venture capital rounds

In July 2018, the tech sector’s leisure class — venture capitalists — kicked investments into overdrive, at least when it comes to financing supergiant venture rounds of $100 million or more (in native or as-converted USD values). With 55 deals accounting for just over $15 billion at time of writing, July likely set an all-time record for the number of huge venture deals struck in a single month. The table below has just the top 10 largest rounds from the month. (A full list of all the supergiant venture rounds can be found here.) It’s certainly a record high for the past decade. Earlier this month, we set out to find when the current mega-round trend began. We found that, prior to the tail end of 2013, supergiant VC rounds were relatively rare. In a given month between 2007 and the start ...

Chinese tech stocks tumble from more than just trade tensions

Editor’s note: This post originally appeared on TechNode, an editorial partner of TechCrunch based in China. Reports of trade tensions between China and the US in the past few months have been hard to ignore. In early July, the US imposed $34 billion on Chinese goods, prompting the Shenzhen Component Index, dominated by technology and consumer product stocks, to fall to its lowest point since 2014, igniting fears among investors. “The U.S. tariffs, coupled with a falling yuan, will significantly increase the cost for many Chinese technology companies that rely on imported raw materials, such as semiconductors, integrated circuits, and electric components,” Zhang Xia, an analyst for China Merchants Bank Securities, told the South China Morning Post. Additionally, the U.S. commerce departmen...

MallforAfrica goes global, Kobo360 and Sokowatch raise VC, France explains its $76M fund

Jake Bright Contributor More posts by this contributor Harley-Davidson to expand EV lineup, may include scooters, bicycles Sokowatch closes $2 million seed round to modernize Africa’s B2B retail B2B e-commerce company Sokowatch closed a $2 million seed investment led by 4DX Ventures. Others to join the round were Village Global, Lynett Capital, Golden Palm Investments, and Outlierz  Ventures. The Kenya based company aims to shake up the supply chain market for Africa’s informal retailers. Sokowatch’s platform connects Africa’s informal retail stores directly to local and multi-national suppliers—such as Unilever and Proctor and Gamble—by digitizing orders, delivery, and payments with the aim of reducing costs and increasing profit margins. “With both manufacturers and the small shops, we’r...

The dramatic rise and fall of online P2P lending in China

Editor’s note: This post originally appeared on TechNode, an editorial partner of TechCrunch based in China. When Emily Zhang was interning with a peer-to-peer (P2P) lending firm in the Summer of 2016, her main task was to carry out research on other P2P lending firms. She found the rates of return tempting and some underlying assets reliable, so she decided to invest in the market herself. Until now, none of her investments have matured, but she worries about whether she can actually withdraw her profits, much less get back the principal. Even so, Zhang considers herself lucky that the companies that sold her the assets are still in business while many other P2P companies have collapsed, leaving their investors in despair. Stories have been circulating across Chinese social networks about...

MyEtherWallet’s secure login app is now available in beta for iOS

Popular crypto wallet service MyEtherWallet has just launched a limited beta version of its first companion mobile app, which we wrote about earlier this week. If you’re a big MyEtherWallet user or just curious about crypto, you’ll want to get hold of the app. Since it’s in beta, you’ll need to head here and follow the instructions to email the company to request access. A full launch for iOS and Android is expected in August. The MEW Connect app allows users to log into the service without typing their private key, just like hardware solutions such as Ledger or Trezor. That’s important because inputting sensitive information like a private key can lead to an account being compromised in the event of a phishing attack. At least two major incidents have happened this year, so the threat is ...

Walmart acquiring Shopify is no longer a laughable idea

Sujay Seetharaman Contributor Sujay Seetharaman is a Customer Success Manager and a Market Analyst at eCommerce market intelligence firm PipeCandy As competition between Walmart and Amazon intensifies, the acquisition of Shopify’s merchant marketplace may be the boost that the Walton family’s juggernaut needs to move ahead. In May this year, Amazon published its small business impact report in which it disclosed that there are 20,000 small and medium sized businesses that make a million dollars or more in sales on its platform Amazon boasts about 5 million third-party sellers on its marketplace today, with an estimated 100,000 sellers hopping onboard every month. At 100,000 sellers a month over the next 5 years, there could be an estimated 11 Million sellers on Amazon’s market...

Alibaba boosts its offline reach with $2B+ investment in outdoor digital marketing firm

Alibaba is investing big bucks into offline distribution. The Chinese e-commerce giant has forked out $2.23 billion in exchange for a sizeable piece of Focus Media, a Shanghai-based company that operates outdoor digital advertising screens across China, Singapore and Hong Kong, according to a U.S. filing. The deal itself is broken up into a few pieces. Alibaba itself is paying $1.43 billion for a 6.62 percent share of Focus Media, which is listed in Shanghai, It is also spending $504.7 million to buy 10 percent of an entity (managed by Focus Media founder and chairman Jason Nanchun Jiang) which controls 23.34 percent of Focus Media. In addition, an Alibaba-aligned fund called ‘New Retail Strategic Opportunities’ is buying 1.37 percent of Focus Media, while Alibaba itself is planning to exe...

A new $124 million for Brazil’s Movile proves that investors still see promise in Latin American tech

Brazil’s macroeconomic picture may be gloomy, but technology investors still see hope in the nation’s burgeoning technology sector — and a recent $124 million financing for the mobile conglomerate Movile is the latest proof that that the pace of investment isn’t slowing down. Brazil was already the hottest spot for technology investment throughout Latin America — with Sao Paulo drawing in the majority of the record-breaking $1 billion in financing that the region’s startups attracted in 2017. And with this latest funding for Movile, led by Naspers, that trend looks likely to continue. Indeed, Naspers investments in Movile (supplemented by co-investors like Innova, which participated in the most recent round) have been one of the driving forces sustaining the Brazilian startup community. In...

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