Extra Crunch Tuesday: 10 VCs say interactivity, regulation and independent creators will reshape digital media in 2021

Extra Crunch Newsletter

Tuesday, January 26, 2021 • By Walter Thompson

Welcome to Extra Crunch Tuesday Image Credits: Aleksandar Nakic / Getty Images Since the pandemic disrupted the social rhythms of work and school, many of us have compensated by changing our relationship to digital media. For instance, I purchased a new sofa and thicker living room curtains several months ago when I realized we have no idea know when movie theaters will reopen. Last year, podcast sponsors spent almost $800 million to reach listeners, but ad revenue is estimated to surpass $1 billion this year. Clearly, I’m not the only person who used a discount code to buy a new product in 2020. At this point, I can scarcely keep track of the multiple streaming platforms I’m subscribed to, but a new voice-activated remote control that comes with my basic cable plan makes it easier to browse my options. Media reporter Anthony Ha spoke to ten VCs who invest in media startups to learn more about where they see digital media heading in the months ahead. For starters, how much longer can we expect traditional advertising models to persist? And in a world with hundreds of channels, how are creators supposed to compete for our attention? What sort of discovery tools can we expect to help us navigate between a police procedural set in a Scandinavian village and a 90s sitcom reboot? Here's who Anthony interviewed: Daniel Gulati, founding partner, Forecast Fund Alex Gurevich, managing director, Javelin Venture Partners Matthew Hartman, partner, Betaworks Ventures Jerry Lu, senior associate, Maveron Jana Messerschmidt, partner, Lightspeed Venture Partners Michael Palank, general partner, MaC Venture Capital (with additional commentary from MaC's Marlon Nichols) Pär-Jörgen Pärson, general partner, Northzone M.G. Siegler, general partner, GV Laurel Touby, managing director, Supernode Ventures Hans Tung, managing partner, GGV Capital Normally, we list each investor’s responses separately, but for this survey, we grouped their responses by question. Some readers say they use our surveys to study up on an individual VC before pitching them, so let us know which format you prefer. Thanks very much for reading, Walter Thompson Senior Editor, TechCrunch @yourprotagonist Read more

Does a $27 or $29 billion valuation make sense for Databricks? Image Credits: Nigel Sussman Data analytics platform Databricks is reportedly raising new capital that could value the company between $27 and $29 billion. By the end of Q3 2020, Databricks had surpassed a $350 million run rate — a $150 million YoY increase, reports Alex Wilhelm. At the time, he described the company as “an obvious IPO candidate” with “broad private-market options.” Which begs today’s question: “Can we come up with a set of numbers that help make sense of Databricks at $27 billion?” Read more

TC Sessions: Justice 2021 Sponsored by TechCrunch Explore inclusive hiring, the gig worker experience, the justice system and more in a series of interviews and breakout sessions. Read more

End-to-end operators are the next generation of consumer business Image Credits: Natalia Timchenko / Getty Images Rapid shifts in the way we buy goods and services disrupted old-school marketplaces like local newspapers and the Yellow Pages. Today, I can use my phone to summon a plumber, a week’s worth of groceries or a ride to a doctor’s office. End-to-end operators like Netflix, Peloton and Lemonade take a lot of time and energy to reach scale, but “the additional capital required is often outweighed by the value captured from owning the entire experience.” Read more

Unpacking Chamath Palihapitiya's SPAC deals for Latch and Sunlight Financial Image Credits: Nigel Sussman Social Capital CEO Chamath Palihapitiya tweeted yesterday morning that he was making two blank-check deals. Enterprise SaaS company Latch makes keyless entry systems; Sunlight Financial helps consumers finance residential solar power installations. “There are nearly 300 SPACs in the market today looking for deals,” noted Alex Wilhelm, who used yesterday’s column to unpack both transactions. “There's no escaping SPACs for a bit, so if you are tired of watching blind pools rip private companies into the public markets, you are not going to have a very good next few months.” Read more

Qualtrics raises IPO pricing ahead of debut Image Credits: Bryce Durbin / TechCrunch Qualtrics filed a new S-1 yesterday that would boost the unicorn’s expected IPO range from $22 – $26 per share to $27 – $29. With a new valuation range between $13.8 billion and $14.8 billion, “Qualtrics is shooting a little bit higher than before,” wrote Alex. Read more

Fintechs could see $100 billion of liquidity in 2021 Image Credits: dan tarradellas / Getty Images Yesterday, we published the Matrix Fintech Index, a three-part study that weighs liquidity, public markets and e-commerce trends to create a snapshot of an industry in perpetual flux. For four years running, the S&P 500 and incumbent financial services companies have been outperformed by companies like Afterpay, Square and Bill.com. In light of steady VC investment, increasing consumer adoption and a crowded IPO pipeline, “fintech represents one of the most exciting major innovation cycles of this decade.” Read more

Drupal's journey from dorm-room project to billion-dollar exit Image Credits: Acquia On January 15, 2001, then-college student Dries Buytaert released Drupal 1.0.0, an open-source content-management platform. At the time, about 7% of the world’s population was online. After raising more than $180 million, Buytaert exited to Vista Equity Partners for $1 billion in 2019. Enterprise reporter Ron Miller interviewed Buytaert to learn more about his 18-year journey. “His story is compelling, but it also offers lessons for startup founders who also want to build something big,” says Ron. Read more

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