Square paid about a quarter of its current value for Afterpay, notes Alex Wilhelm on The Exchange. That seems like a lot. But was it too much?
“Afterpay brings global revenue, global users, and a more diverse business network to Square,” says Alex. “I would have had to spend to derive those assets over time. Square is willing to pay to catch them now. “
Dana Stalder, partner at Matrix Partners and Afterpay’s sole institutional investor, describes the deal as part of a recurring “critical cycle of innovation” in fintech It “determines the winners and losers” for decades to come.
“I’ve never seen a combination that has so much potential to deliver extraordinary value to consumers and merchants,” says Stalder. “Even more than eBay + PayPal.”
Thanks so much for reading Extra Crunch this week!
Senior Editor, TechCrunch
The best way to grow your career? Treat it like an app
Developers can delight in solving complex technical problems, but a career path problem is one that many don’t think much about, Juniper Networks CTO Raj Yavatkar writes in a guest column.
It offers a solution that should appeal to developers and engineers: “Treat career advancement as you would a software project.”
Design Expert Scott Tong Outlines 4 Concepts Founders Should Consider When Designing Products
At Early Stage 2021, design expert Scott Tong shared some ways founders should think about design and branding.
If you can tie your brand to your company’s reputation, I think it’s a great place to start when having brand conversations. What is the first impression? What are the consistent behaviors that your brand hopes to repeat over and over again? What are the memorable moments that stand out and make your brand, your reputation memorable?
You can’t afford to make poor decisions about incentive stock options
If you are lucky enough to be considering taking advantage of purchased stock options, this guest column is worth reading.
“Most companies admit that they need to be better at explaining how ISOs work in general, but they cannot legally work one-on-one with employees to help them exercise and sell stocks the right way,” write Pam Krueger and John Chapman. by Wealthramp. .
“That’s why, when the time is right, many employees actively seek the help of a qualified fiduciary financial advisor who can guide these potential ‘option millionaires’ through various cash inflow scenarios.”
Demand curve: questions to answer in your paid search ads
At some point, almost all startups will use paid search ads to connect with customers and jump into competition with their competitors.
Most of these initial paid search attempts are unsuccessful. There’s a steep learning curve when it comes to transforming passive search engines into paying customers, and hardly anyone gets it right the first time.
In a full guest post, growth marketer Stewart Hillhouse identified “14 questions your paid search needs to answer to make sure you’re only paying for buyers with the highest intent.”
Question 1? “What is it for? I? “
5 IPO Lessons of the Year in Edtech from Duolingo
Duolingo’s debut last week was a bright spot, Alex Wilhelm and Natasha Mascarenhas write, with the language learning app’s share price landing above a high initial public offering range.
Alex and Natasha detail five lessons to learn from Duolingo float:
- The IPO event will bring “more sophistication” to Duolingo’s core service.
- Roadshow investors did not see Duolingo as an educational technology company.
- China’s crackdown on educational technology will have a “neutral” impact on Duolingo.
- In certain cases, post-COVID growth decline is not lethal.
- Growth can still absolve mounting losses.
Can your startup support a research-based workflow?
In the US alone, annual AI R&D spending is expected to reach $ 100 billion by 2025.
But can your humble startup attract and retain users while conducting product research and development?
“For obvious reasons, companies want to do things that are important to their customers, investors and stakeholders. Ideally, there is a way to do both, ”says João Graça, CTO and co-founder of Unbabel, an AI-powered language operations platform.
Kodiak Robotics founder says strict focus on autonomous trucks is working
As part of an ongoing series with founders of trucking startups, Rebecca Bellan interviews Kodiak Robotics CEO and co-founder Don Burnette on why the autonomous trucking company remains private when many of its rivals have gone public. .
“I think there are also a lot of opportunities within VCs and private markets,” Burnette said.
“Kodiak is one of the only serious AV trucking companies left in the private sector, so I think that gives us some advantages in many ways.”
How Public Markets Can Help Address Venture Capital Limitations
After interviewing Draper Esprit co-founder Stuart Chapman, Alex Wilhelm and Anna Heim took a look at the trend for European venture capitalists floating on their own.
Traditional venture capital models “can impose artificial time constraints on investors and force them to focus their transaction flow on particular stages for fund-building reasons,” Alex and Anna write for The Exchange.
“As we discovered from researching this article, the public company model highlights some of these limitations, and may be able to alleviate some of them.”
Robinhood CFO says it was ready to go public
After Robinhood failed to burn the stock charts, Alex Wilhelm wondered why, exactly, the IPO of the investing and trading app didn’t live up to expectations.
He spoke with Robinhood CFO Jason Warnick, who shared a few reasons why it was time for the company to float:
… Warnick indicated that there were a few factors at play, including that Robinhood had built its leadership team and internal processes, and that it had worked on user security related tasks and expanded the site’s use cases. All that is true.