August 9, 2020
AliExpress WW
Startups Weekly: Qualtrics IPO to be even more exciting this time around – TechCrunch

Startups Weekly: Qualtrics IPO to be even more exciting this time around – TechCrunch

AliExpress WW

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German software giant SAP bought Qualtrics’ experience management platform 8 billion days before the unicorn’s IPO, back in November 2018. But last weekend decided to promote experience management provider to finally go public on its own. Analysts Ron Miller spoke with talked about strategic issues on the SAP side and came to the conclusion that this is more of an internal reboot combined with the financial gain from a promising proposal.

Qualtrics, meanwhile, has already put Utah’s launch scene on the map for people around the world. Growing strongly after the acquisition, it is now the largest IPO in state history. Here Alex Wilhelm with big analysis in Extra Crunch:

In accordance with metrics from Bessemer Cloud Indexcloud companies with a growth rate of 35.5% and a gross profit of 71.3% are estimated at 17.3 times their annual income.

Given how close Qualtrics is to this averaged set of metrics (slightly slower growth, slightly better gross margin), 17.3x is probably not too far off what the company can achieve when it goes public. A total of $ 800 million at a factor of 17.3 is $ 13.8 billion, far more than SAP paid for Qualtrics. (It’s doubtful for you, doubtful that Qualtrics has a lot of debt, although it will have a lot of money after its IPO; expect the company’s enterprise value to be slightly below its future market cap.)

As such, the markets today value cloud companies so highly that even after SAP had to pay a huge premium to buy Qualtrics before going public, the company is still significantly more valuable today after just two years of growth.

Back in the era of nation states

The tech industry is crumbling and reformed by national governments in such a way that many of its leaders do not seem to be planning this as part of scaling to the world, whether you think TikTok’s ever-growing global footprint or top tech CEOs were called by Congress. … As you browse through the numerous headlines on these topics this week, you’ll see a very clear message in the subtext: Every startup should think more carefully about its place in the world these days as a matter of survival.

Big technology destroys profit expectations Q2

Lawmakers argue big technology will benefit from pandemic and should be regulated

Secret US Antitrust Investigation Documents Reveal Major Technology Plans To Control Or Suppress Competition

Apple App Store Fee Structure Doubt During Antitrust Proceedings

Zuckerberg unconvincingly feigns ignorance of VPN data-sucking scandal

In antitrust hearing, Zuckerberg admits Facebook copied its competition

Before buying Instagram, Zuckerberg warned employees about the “battle” to “oust” a competitor

Apple CEO Tim Cook inquires about App Store removal of competing on-screen apps in an antitrust case

Google’s Sundar Pichai Grilling “Destroys Internet Anonymity”

Bezos “cannot guarantee” any anti-competitive activity as Congress caught him off guard

Amazon’s hardware business hasn’t escaped congressional scrutiny

Time for TikTok:

India Bans 47 Apps Cloning Limited Chinese Services

After India and the US, Japan plans to ban TikTok and other Chinese apps

Report: Microsoft Negotiates US TikTok Business From Chinese ByteDance

Key arguments for Microsoft-TikTok linking 😉

Last but not least, ominous, for large platforms …

Australia now has a template to force Facebook and Google to pay for news

The team at the Enterprise startup, which worked with the first remote applications, put together this installation of some of their remote offices.

Remote work still gets a big investment

This loosely defined SaaS subsector has gone from being a fairly common idea in the startup world last year to being full mainstream in the wider world due to this year’s pandemic. But publicly traded companies were some of the largest beneficiaries (see previous point), and the actions around early stage startups were less clear. Lucas Mutney and Alex caught up with six investors who were focused on different parts of the space to get the latest Extra Crunch. From Elliot Robinson, a growth investor in Bessemer, here’s a detailed breakdown of the fundraising trends companies are facing:

How competitive are remote venture capital rounds now?

Incredibly competitive. I think one dynamic I’ve seen is that the basket of telecommuters that are really high performing nowadays set high price expectations much earlier than they go up. Many of these companies did not plan for an increase in the 2nd and 3rd quarters, but with the COVID tailwinds, they are opting for an increase with some often invisible valuation ratios.

Are the prices out of control?

I guess it depends on your definition of out of control. The reality is that many of these companies are extracting money from the natural fundraising cycle for two reasons: First, they see digital transformation and the adoption of tools for remote work once in a lifetime. And secondly, so many investors have raised significant funds in the past nine months that they tend to invest in these companies – one of the few segments that is likely to continue to face a tailwind as COVID cases continue to grow in the US. Other traditional software values ​​could face significant obstacles in the uncertain world of COVID. Thus, equity investors for growth are multiplying to gain a chance at companies defining RW application categories.

Haptik in a pandemic world

Haptics is great technology, but the practical future of touch is everywhere – virtual devices are suddenly becoming more interesting and touchpads less. Devon Powers and David Parisy are scientists and authors who focus on space, and this week they wrote a great guest post for TechCrunch, discussing the ups and downs of a concept that has developed over decades. Here is a key excerpt:

Choosing the right tactile tactics remains challenging despite over 30 years of research experience in this area. There is no evidence that COVID is accelerating the development of projects that are already under development. The virtual touch fantasy remains seductive, but striking the middle ground between fidelity, ergonomics and cost will remain a challenge that can only be solved through a protracted process of trial and error in the marketplace. And while the haptics retain enormous potential, it is not a magic bullet for correcting the psychological effects of physical distancing.

Curiously, one promising exception is the replacement of touch screens using a combination of hand-held tracking and tactile holograms that act as button replacements. This product from Bristol-based Ultraleap uses an array of speakers to project perceptible sound waves into the air that provide resistance when pressed, effectively reproducing the sensation of pressing a button.

Ultraleap recently announced that it will partner with advertising company CEN. equip signage displays in movie theaters across the United States with non-contact tactile devices that allow you to interact with the screen without touching it. These displays, according to Ultraleap, “will limit the spread of germs and ensure a safe and natural interaction with content.”

A recent study by the company found that over 80% of respondents expressed concerns about touchscreen hygiene, prompting Ultraleap to suggest that we are achieving “end [public] the era of the touch screen ”. Rather than triggering technological change, the pandemic provided an opportunity to accelerate the deployment of existing technologies. Touchscreens are no longer sites of naturalistic, creative interaction, but they are now places of infestation that should be avoided. Ultraleap’s version of the future implies that we will be touching air, not contaminated glass.

Finding the Best Investors for You: TC List and European Surveys

Speaking of investors, TechCrunch has been busy with several other projects to help you find the right ones faster.

First, Danny Crichton pushed for the third update TechCrunch List, due to the ongoing stream of recommendations. According to him“Now, using over 2,600 founder recommendations, more than double our original dataset, we have highlighted a number of existing investors on our list, and also added 116 new investors who have been approved by the founders as investors looking to cut grain spending. and write these critical early reviews and lead venture rounds. “

Check it out and filter by location, category and scene to narrow down your pitch list. If you are a founder and have not submitted your recommendations yet, you are welcome fill our very short survey, If you have any questions, we will write Frequently asked Questions a page that describes qualifications and logistics, some listing logic and how to contact us.

Second, our editor-in-chief Mike Butcher we are starting a virtual survey of investors in European countriesto help Extra Crunch provide a clearer view of what’s going on in Continent’s Startup Hubs in the heart of the Going Crazy World:

TechCrunch starts a new major project interview venture investors in Europe. Over the next few weeks, we will be “focusing” on the major cities in Europe, from AZ to Amsterdam and Zurich, and many intermediate points. This is part of a wider survey series we do to help founders find suitable investors. For example, here’s a recent overview of London,

our interview will talk about how each European startup center is doing, and what changes the coronavirus pandemic is making among investors. We would like to know how the startup scene in your city is evolving, how COVID-19 is affecting the tech sector, and in general how your mindset will evolve from here. Our survey will only be about investors, and only contributions from VK investors will be included. A short list of questions will only require short answers, but the more you want to add, the better.

The application deadline is the end of next week, August 7th, and you can fill it out here.

He also wanted me to let you know that he will resume his personal travel as soon as he allows. (I actually made this up, but he said the same.)

Around TechCrunch

Submit Your Deck to Play Disrupt 2020 Pitch Deck Teardown

Announcement of Breaking the 2020 Agenda

Talk Virtual Events and Disrupt with Hopin Founder Johnny Boufarhat

TechCrunch Exchange: What is an IPO for SPAC?– If you haven’t checked out Alex’s new weekly email list yet.

A week later

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Plugged sound was a bad choice

Stanford Students Short VC Firms By Investing In Their Peers

Bitcoin Bulls Are Working As Their Prices Are Over $ 11K

Recruiting for variety on VK

Creating products that improve the lives of prisoners

Extra crunch

Six things venture capitalists look for in your field

VC and startups consider HaaS model for consumer devices

Teespring comeback story

Cannabis VC Karan Wadhera on why an industry that suffered last year is now quietly ablaze

Jesus, SaaS and digital tithe

#EquityPod

From Alex:

Hello and welcome back to CapitalTechCrunch Venture Capital Podcast (now on twitter!) where we unpack the numbers behind the headings.

We had a full team this week: Himself, Danny and Natasha on microphones, with Chris the skipper works as always.

Unfortunately, this week we had to start with a correction, since I am 1) dumb and 2) see point one. But after we went through the SPAC nuances (shout to David Etridge), we had a full show of good stuff, including:

And that’s fairness this week. We returned early Monday morning, so stay tuned for our news. Hug, we’ll talk soon!

Stocks are down every Monday at 7:00 AM PT and Friday at 6:00 AM PT, so follow us at Apple Podcasts, Overcast weather, Spotify and all the casts.


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