Yesterday, China ordered ride-hailing company Didi to stop signing up new customers after regulators announced a cybersecurity review of the company\u2019s operations.<\/p>\n
As of this writing, Didi\u2019s stock price is down 5.3%. In today\u2019s edition of The Exchange<\/a>, Alex Wilhelm suggested that the move wasn\u2019t a complete surprise, but it still \u201cputs a bad taste in our mouths,\u201d since the company went public days ago.<\/p>\n Full Extra Crunch articles are only available to members. When Didi filed to go public, it listed several potential pitfalls facing Chinese companies that go public in the U.S., including \u201cnumerous legal and regulatory risks\u201d and \u201cextensive government regulation and oversight in its F-1.\u201d<\/p>\n What does this news signify for other Chinese companies that are hoping for stateside IPOs?<\/p>\n We\u2019ll be off on Monday, July 5 in observance of Independence Day. Thanks very much for reading, and I hope you have an excellent weekend.<\/p>\n Walter Thompson Chinese cybersecurity probe validates Didi\u2019s pre-IPO warning to investors<\/a><\/p>\n<\/blockquote>\n\n Image Credits:<\/strong> NeONBRAND\/Unsplash (opens in a new window)<\/span><\/a><\/p>\n Did you hear about the CEO who made misleading claims about a funding round and got sued? How about that pharmaceutical executive whose taunts to a former Secretary of State led to a 4.4% decline in the Nasdaq Biotechnology Index?<\/p>\n In case it isn\u2019t clear: Startup executives are held to a higher standard when it comes to what they post on social media.<\/p>\n \u201cReputation and goodwill take a long time to build and are difficult to maintain, but it only takes one tweet to destroy it all,\u201d says Lisa W. Liu, a senior partner at The Mitzel Group, a San Francisco-based law practice that serves many startups.<\/p>\n To help her clients (and Extra Crunch readers) Liu has six basic questions for tech execs with itchy Twitter fingers.<\/p>\n And if the answer to any of them is \u201cI don\u2019t know,\u201d don\u2019t post.<\/p>\n 3 guiding principles for CEOs who post on Twitter<\/a><\/p>\n<\/blockquote>\n\n Image Credits:<\/strong> Kari Shea\/Unsplash (opens in a new window)<\/span><\/a><\/p>\n A report from Brighteye Ventures on Europe\u2019s edtech scene shows that this year\u2019s deal flow is on pace to meet or surpass 2020, when remote instruction exploded.<\/p>\n According to Brighteye\u2019s head of Research, Rhys Spence, the average deal size is now $9.4 million, a threefold increase from last year. Still, \u201cIt\u2019s interesting that we are not seeing enormous increases in deal count,\u201d he noted.<\/p>\n The 2021 edtech avalanche has just begun<\/a><\/p>\n<\/blockquote>\n\n Image Credits:<\/strong> TechCrunch<\/p>\n Trading platform Robinhood has attracted enough users and activity to change the conversation around retail investing \u2014 economists will likely be discussing the 2021 GameStop saga for years to come.<\/p>\n After the company filed to go public yesterday, Alex Wilhelm sorted through Robinhood\u2019s main income statement to better understand how it scaled year-ago revenue from $127.6 million to $522.2 million in Q1.<\/p>\n \u201cThose are numbers that we frankly do not see often amongst companies going public,\u201d says Alex. \u201c300% growth is a pre-Series A metric, usually.\u201d<\/p>\n So: where is all that revenue coming from?<\/p>\n How Robinhood\u2019s explosive growth rate came to be<\/a><\/p>\n<\/blockquote>\n\n Image Credits:<\/strong> Nigel Sussman (opens in a new window)<\/span><\/a><\/p>\n Given the valuation gap between U.S. tech markets and those overseas, it\u2019s easy to see why some foreign startups would head to our shores when it\u2019s time to go public.<\/p>\n But Anna Heim and Alex Wilhelm found that a record increase in European venture capital activity is picking up the pace of IPOs this year, and many of these companies are content to go public in their native markets.<\/p>\n To gain some insight into where European investors believe they have an advantage, Anna and Alex interviewed:<\/p>\n As EU venture capital soars, will the region hold onto future IPOs?<\/a><\/p>\n<\/blockquote>\n\n Image Credits:<\/strong> Diana Ilieva (opens in a new window)<\/span><\/a> \/ Getty Images<\/p>\n In a recent private equity survey, 80% of respondents said their co-investments with people outside traditional VC firms outperformed their PE fund investments.<\/p>\n Alternative investors are highly motivated, and because they\u2019re seeking higher returns than are generally available in public markets, they are less daunted by risk. In return, they benefit from less expensive fee structures and develop close ties with VCs, enlarging the talent pool as they build investment skills.<\/p>\n These relationships have direct benefits for VCs as well, such as more flexibility with diversification and consolidated decision-making power.<\/p>\n \u201cWith the right deal structure, deal selection and deal investigation, co-investors can significantly increase their returns,\u201d says C5 Capital Managing Partner William Kilmer, who wrote an Extra Crunch post for VCs considering an alternative path.<\/p>\n How VCs can get the most out of co-investing alongside LPs<\/a><\/p>\n<\/blockquote>\n\n Image Credits:<\/strong> Bryce Durbin\/TechCrunch<\/p>\n Dear Sophie,<\/strong><\/p>\n My husband and I are both U.S. permanent residents.<\/strong><\/p>\n Given what we\u2019ve gone through this past year being isolated from loved ones during the pandemic, we\u2019d like to bring my parents and my sister to the U.S. to be close to our family and help out with our children.<\/strong><\/p>\n Is that possible?<\/strong><\/p>\n \u2014 Symbiotic in Sunnyvale<\/strong><\/p>\n Dear Sophie: How can I bring my parents and sister to the US?<\/a><\/p>\n<\/blockquote>\n\n Image Credits:<\/strong> Andreus (opens in a new window)<\/span><\/a> \/ Getty Images<\/p>\n Smart-building products include everything from connecting landlords with tenants to managing construction sites.<\/p>\n Given their widespread impact on the enterprise \u2014\u00a0and the novel nature of much of this new technology, selecting the right digital building platform (DBP) is a challenge for most organizations.<\/p>\n Brian Turner, LEED-AP BDC, has created a matrix intended to help decision-makers identify the fundamental functions and desired outcomes for stakeholders.<\/p>\n \u201cWhen it comes to the built environment, creating those comfortable, healthy and enjoyable places requires new tools,\u201d says Turner. \u201cSelecting a solid DBP is one of the most important decisions to be made.\u201d<\/p>\n How to cut through the promotional haze and select a digital building platform<\/a><\/p>\n<\/blockquote>\n\n Image Credits:\u00a0<\/strong>Octavian Iolu \/ EyeEm\u00a0(opens in a new window)<\/span><\/a>\/\u00a0Getty Images<\/p>\n One perennial problem inside startups: Because no one on the founding team has significant marketing experience, growth-related efforts are pro forma and generally unlikely to move the needle.<\/p>\n Everyone wants higher click-through rates, but creating ads that \u201cstand out\u201d is a risky strategy, especially when you don\u2019t know what you\u2019re doing. This guest post by Demand Curve offers seven strategies for boosting CTR that you can clone and deploy today inside your own startup.<\/p>\n Here\u2019s one: If customers are talking about you online, reach out to ask if you can add a screenshot of their reviews to your advertising. Testimonials are a form of social proof that boost conversions, and they\u2019re particularly effective when used in retargeting ads.<\/p>\n Earlier this week, we ran another post about optimizing email marketing for early-stage startups<\/a>.<\/p>\n We\u2019ll have more expert growth advice coming soon, so stay tuned.<\/p>\n Demand Curve: 7 ad types that increase click-through rates<\/a><\/p>\n<\/blockquote>\n\n
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\nSenior Editor, TechCrunch
\n@yourprotagonist<\/a><\/p>\n\n
3 guiding principles for CEOs who post on Twitter<\/h2>\n
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The 2021 edtech avalanche has just begun<\/h2>\n
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How Robinhood\u2019s explosive growth rate came to be<\/h2>\n
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As EU venture capital soars, will the region retain future IPOs?<\/h2>\n
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How VCs can get the most out of co-investing alongside LPs<\/h2>\n
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Dear Sophie: How can I bring my parents and sister to the U.S.?<\/h2>\n
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How to cut through the promotional haze and select a digital building platform<\/h2>\n
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Demand Curve: 7 ad types that increase click-through rates<\/h2>\n
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To guard against data loss and misuse, the cybersecurity conversation must evolve<\/h2>\n
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