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Hello and welcome to Daily Crunch for Tuesday, December 14! Our Space event is underway and kicking maximum Q thus far, I am happy to report. In other TechCrunch news, I just hit my two-year mark being back at the blog. Time flies! Thanks to everyone for reading my rambling so that I can stay aboard the good ship TechCrunch. Now, the news! —Alex

The TechCrunch Top 3

  • Apple’s Siri-only music plan launches: I had forgotten all about Apple’s cheaper, more limited music plan announced earlier this year. But it’s not only real, it’s here. So, if you are big into Apple speaker tech and want to save a few bucks, here’s a music streaming option for you. Notably, part of the innovation is a lower price, which, frankly, given streaming economics, is not the direction I want to see music services go.
  • This may be peak SPAC: To cap 2021’s more silly stories off with a cherry, a metaverse-themed company with around $1 million in revenue is going public via a SPAC. Naturally, it has big expectations for future revenue growth. The company is betting that public-market investors are sufficiently smitten with all things metaverse to bid up its equity. Let’s see.
  • Big Cartel unionizes: In the wake of news that Amazon workers died in their facility after a tornado hit it, you might be curious about the progress of unionization among workers for tech companies. Slowly, is the answer to that. But startups are taking the lead again, with Big Cartel choosing to voluntarily recognize its employee union. Confused? Yes, leadership has been scarce in this area from the corporate perspective.

Startups/VC

Kicking off today, here’s a guide from our own Sarah Perez concerning what gifts to buy if you are looking to cut your, or your loved one’s, screen time. I need this.

  • How many stars does your doctor have? Garner Health is betting that you want to look up doctor reviews before picking your provider. The company’s work landed a $45 million Series B, TechCrunch reports. Given just how big the healthcare market is, the company’s TAM is effectively infinite.
  • The new webcam status symbol: Everyone’s talking about Opal, at least on my Twitter feed. The company built a $300 webcam that looks nifty, and, we presume, will actually be in stock. This deep into the pandemic, lots of folks still have spotty internet, poor lighting and more. Perhaps the startup didn’t miss its window.
  • a16z backs PleasrDAO: The decentralized autonomous organization (DAO) PleasrDAO has collected backing from a16z, which TechCrunch notes is not the first time that the investing group has backed a DAO. Pleasr’s claims to fame appear to be that it bought a doge NFT for $4 million and spent millions more on a Wu-Tang Clan album.
  • Pair raises $60M: While we’re sufficiently far past the Warby Parker founding story now that the company is public, startups aren’t letting the eyeglasses game rest. Pair, which builds eyewear that allows for inexpensive modification, just closed its second round of the year. Previously, the company raised $12 million in April. A quick perusal of its service while writing this newsletter for you left me wanting a pair, for whatever my limited fashion sense is worth. It’s worth noting that Warby Parker remains above its $40 per-share IPO price. More on the Warby DTC IPO from earlier this year.
  • Mixhalo raises Series B for live audio mixing: The live events business may have been little more than moribund during the last few years, but Mixhalo is far from dead, it turns out. The company, focused on live audio for, well, live events just closed a Series B.
  • Mapping data is big business: If you go back into the depths of startup time, there was once this big moment for “mashups.” The idea was to take two data sets and smush them together. This led to sites like Mashable — get it? — being formed. The mashup movement wound up subsumed into other tech work. Or was it? Carto just raised a $61 million Series C for what TechCrunch describes as helping companies display “data on interactive maps so that you can more easily compare, optimize, balance and make decisions.” Maps plus data? Sounds like a mashup.
  • Today’s Tiger round is Mesh Payments: Helping companies manage their spend is a simply huge startup category. Ramp, Brex, Airbase and others are working on the issue in the United States, for example. International competitors abound as well. Today TechCrunch noted that Mesh Payments, another player in the space, just raised a $50 million round led by the ever-present Tiger.
  • Luxembourg-based IBISA raises microround for microinsurance: I dig this one. Focused on providing coverage for “small farmers whose livelihoods might be affected by adverse climate events,” IBISA just raised about $1.7 million in a new capital round. The company, despite its European roots, focuses on developing markets.
  • Vertical SaaS remains an investable category: In the wake of Squire raising successive rounds for its barbershop vertical SaaS play, we should not be shocked that Fresha has raised a $52.5 million round of capital today. The company sells software for the beauty and wellness industry.

Finally, as we segue into today’s TechCrunch+ feature story, our own Ron Miller is not as convinced as some about the web3 hype. Others are more excited:

7 investors discuss web3’s present and peer into its future

Young asian woman with virtual reality simulator while standing in living room and wood material wall background

Image Credits: Poca Wander (opens in a new window) / Getty Images

We’re years away from web3 capturing major market share, and there are valid concerns that its complexity will daunt consumers and regulators. 

However, our research indicated that the investment landscape is growing increasingly competitive as venture capitalists become more educated and less skeptical.

To get a clearer sense of where the market is, we reached out to several active investors to find out where web3 stands and what the future holds:

  • Lior Messika, founder and managing partner, Eden Block
  • Atul Ajoy, partner, Horseshoe Capital
  • David Chreng-Messembourg, founding partner, LeadBlock Partners
  • Randy Glein, founder/partner, and Sam Shapiro, principal, DFJ Growth
  • Mercedes Bent, partner, Lightspeed Venture Partners
  • Jai Das, co-founder, president and partner, Sapphire Ventures

(TechCrunch+ is our membership program, which helps founders and startup teams get ahead. You can sign up here.)

Big Tech Inc.

  • Coinbase adds image viewing feature: If you use ​​Coinbase Wallet on desktop, you can now check out your NFTs. We’d normally make some jokes here about the tech required to view images on computers, but we don’t want to get into a Twitter war with Bored Ape fans.
  • Snap paid out a quarter billion this year to support its TikTok clone: Snap’s Snapchat service is an interesting social product to watch. It has never given up on its slight angle on the social world, and its parent company has not been shy in using its capital resources — the company raised debt some years ago — to keep the platform well stocked. Today the company announced that it has paid creators $250 million to make content for Spotlight, which is similar to TikTok.
  • Cash App now lets users gift stock, crypto: The ability to gift crypto is not new per se, but to see Cash App roll out the capability could allow for more mass-market crypto gifting. Recall that Cash App is no longer owned by Square, it’s owned by Block, its newly rebranded parent company.
  • The UK is looking to shake up Google, Apple: The war between third-party developers and the major mobile app store companies continues around the world, with news out today that the “U.K.’s antitrust watchdog has given the clearest signal yet that interventions under an upcoming reform of the country’s competition rules will target” Apple (iOS) and Google (Android).
  • A self-driving setback: Daily Crunch has made much mention of self-driving milestones this year, covering new commercial partnerships and tentative in-market movements. But there was some negative progress today, namely that Chinese autonomous driving startup Pony.ai has had its California test permit revoked following a crash.
  • Netflix cuts prices in India: We’ve noted in this missive that Netflix is getting into the games business. Why? Because there are only so many people with enough money and internet access out there for Netflix to sell streaming services to. Evidence of the company starting to bump up against its natural market size is that the American streaming service is cutting prices in India. As our own Manish Singh notes, this is not the first time that the company has tinkered with its pricing in the country.

TechCrunch Experts

dc experts

Image Credits: SEAN GLADWELL / Getty Images

TechCrunch wants to know which software consultants you’ve worked with for anything from UI/UX to cloud architecture. Let us know here.

If you’re curious about how these surveys are shaping our coverage, check out this interview by Anna Heim: “From Ph.D. to boutique software developer: An interview with Solwey’s Andrew Drach.”

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International

Beloved mall retailer files Chapter 7 bankruptcy, will liquidate

The struggling chain has given up the fight and will close hundreds of stores around the world.

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It has been a brutal period for several popular retailers. The fallout from the covid pandemic and a challenging economic environment have pushed numerous chains into bankruptcy with Tuesday Morning, Christmas Tree Shops, and Bed Bath & Beyond all moving from Chapter 11 to Chapter 7 bankruptcy liquidation.

In all three of those cases, the companies faced clear financial pressures that led to inventory problems and vendors demanding faster, or even upfront payment. That creates a sort of inevitability.

Related: Beloved retailer finds life after bankruptcy, new famous owner

When a retailer faces financial pressure it sets off a cycle where vendors become wary of selling them items. That leads to barren shelves and no ability for the chain to sell its way out of its financial problems. 

Once that happens bankruptcy generally becomes the only option. Sometimes that means a Chapter 11 filing which gives the company a chance to negotiate with its creditors. In some cases, deals can be worked out where vendors extend longer terms or even forgive some debts, and banks offer an extension of loan terms.

In other cases, new funding can be secured which assuages vendor concerns or the company might be taken over by its vendors. Sometimes, as was the case with David's Bridal, a new owner steps in, adds new money, and makes deals with creditors in order to give the company a new lease on life.

It's rare that a retailer moves directly into Chapter 7 bankruptcy and decides to liquidate without trying to find a new source of funding.

Mall traffic has varied depending upon the type of mall.

Image source: Getty Images

The Body Shop has bad news for customers  

The Body Shop has been in a very public fight for survival. Fears began when the company closed half of its locations in the United Kingdom. That was followed by a bankruptcy-style filing in Canada and an abrupt closure of its U.S. stores on March 4.

"The Canadian subsidiary of the global beauty and cosmetics brand announced it has started restructuring proceedings by filing a Notice of Intention (NOI) to Make a Proposal pursuant to the Bankruptcy and Insolvency Act (Canada). In the same release, the company said that, as of March 1, 2024, The Body Shop US Limited has ceased operations," Chain Store Age reported.

A message on the company's U.S. website shared a simple message that does not appear to be the entire story.

"We're currently undergoing planned maintenance, but don't worry we're due to be back online soon."

That same message is still on the company's website, but a new filing makes it clear that the site is not down for maintenance, it's down for good.

The Body Shop files for Chapter 7 bankruptcy

While the future appeared bleak for The Body Shop, fans of the brand held out hope that a savior would step in. That's not going to be the case. 

The Body Shop filed for Chapter 7 bankruptcy in the United States.

"The US arm of the ethical cosmetics group has ceased trading at its 50 outlets. On Saturday (March 9), it filed for Chapter 7 insolvency, under which assets are sold off to clear debts, putting about 400 jobs at risk including those in a distribution center that still holds millions of dollars worth of stock," The Guardian reported.

After its closure in the United States, the survival of the brand remains very much in doubt. About half of the chain's stores in the United Kingdom remain open along with its Australian stores. 

The future of those stores remains very much in doubt and the chain has shared that it needs new funding in order for them to continue operating.

The Body Shop did not respond to a request for comment from TheStreet.   

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Government

Are Voters Recoiling Against Disorder?

Are Voters Recoiling Against Disorder?

Authored by Michael Barone via The Epoch Times (emphasis ours),

The headlines coming out of the Super…

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Are Voters Recoiling Against Disorder?

Authored by Michael Barone via The Epoch Times (emphasis ours),

The headlines coming out of the Super Tuesday primaries have got it right. Barring cataclysmic changes, Donald Trump and Joe Biden will be the Republican and Democratic nominees for president in 2024.

(Left) President Joe Biden delivers remarks on canceling student debt at Culver City Julian Dixon Library in Culver City, Calif., on Feb. 21, 2024. (Right) Republican presidential candidate and former U.S. President Donald Trump stands on stage during a campaign event at Big League Dreams Las Vegas in Las Vegas, Nev., on Jan. 27, 2024. (Mario Tama/Getty Images; David Becker/Getty Images)

With Nikki Haley’s withdrawal, there will be no more significantly contested primaries or caucuses—the earliest both parties’ races have been over since something like the current primary-dominated system was put in place in 1972.

The primary results have spotlighted some of both nominees’ weaknesses.

Donald Trump lost high-income, high-educated constituencies, including the entire metro area—aka the Swamp. Many but by no means all Haley votes there were cast by Biden Democrats. Mr. Trump can’t afford to lose too many of the others in target states like Pennsylvania and Michigan.

Majorities and large minorities of voters in overwhelmingly Latino counties in Texas’s Rio Grande Valley and some in Houston voted against Joe Biden, and even more against Senate nominee Rep. Colin Allred (D-Texas).

Returns from Hispanic precincts in New Hampshire and Massachusetts show the same thing. Mr. Biden can’t afford to lose too many Latino votes in target states like Arizona and Georgia.

When Mr. Trump rode down that escalator in 2015, commentators assumed he’d repel Latinos. Instead, Latino voters nationally, and especially the closest eyewitnesses of Biden’s open-border policy, have been trending heavily Republican.

High-income liberal Democrats may sport lawn signs proclaiming, “In this house, we believe ... no human is illegal.” The logical consequence of that belief is an open border. But modest-income folks in border counties know that flows of illegal immigrants result in disorder, disease, and crime.

There is plenty of impatience with increased disorder in election returns below the presidential level. Consider Los Angeles County, America’s largest county, with nearly 10 million people, more people than 40 of the 50 states. It voted 71 percent for Mr. Biden in 2020.

Current returns show county District Attorney George Gascon winning only 21 percent of the vote in the nonpartisan primary. He’ll apparently face Republican Nathan Hochman, a critic of his liberal policies, in November.

Gascon, elected after the May 2020 death of counterfeit-passing suspect George Floyd in Minneapolis, is one of many county prosecutors supported by billionaire George Soros. His policies include not charging juveniles as adults, not seeking higher penalties for gang membership or use of firearms, and bringing fewer misdemeanor cases.

The predictable result has been increased car thefts, burglaries, and personal robberies. Some 120 assistant district attorneys have left the office, and there’s a backlog of 10,000 unprosecuted cases.

More than a dozen other Soros-backed and similarly liberal prosecutors have faced strong opposition or have left office.

St. Louis prosecutor Kim Gardner resigned last May amid lawsuits seeking her removal, Milwaukee’s John Chisholm retired in January, and Baltimore’s Marilyn Mosby was defeated in July 2022 and convicted of perjury in September 2023. Last November, Loudoun County, Virginia, voters (62 percent Biden) ousted liberal Buta Biberaj, who declined to prosecute a transgender student for assault, and in June 2022 voters in San Francisco (85 percent Biden) recalled famed radical Chesa Boudin.

Similarly, this Tuesday, voters in San Francisco passed ballot measures strengthening police powers and requiring treatment of drug-addicted welfare recipients.

In retrospect, it appears the Floyd video, appearing after three months of COVID-19 confinement, sparked a frenzied, even crazed reaction, especially among the highly educated and articulate. One fatal incident was seen as proof that America’s “systemic racism” was worse than ever and that police forces should be defunded and perhaps abolished.

2020 was “the year America went crazy,” I wrote in January 2021, a year in which police funding was actually cut by Democrats in New York, Los Angeles, San Francisco, Seattle, and Denver. A year in which young New York Times (NYT) staffers claimed they were endangered by the publication of Sen. Tom Cotton’s (R-Ark.) opinion article advocating calling in military forces if necessary to stop rioting, as had been done in Detroit in 1967 and Los Angeles in 1992. A craven NYT publisher even fired the editorial page editor for running the article.

Evidence of visible and tangible discontent with increasing violence and its consequences—barren and locked shelves in Manhattan chain drugstores, skyrocketing carjackings in Washington, D.C.—is as unmistakable in polls and election results as it is in daily life in large metropolitan areas. Maybe 2024 will turn out to be the year even liberal America stopped acting crazy.

Chaos and disorder work against incumbents, as they did in 1968 when Democrats saw their party’s popular vote fall from 61 percent to 43 percent.

Views expressed in this article are opinions of the author and do not necessarily reflect the views of The Epoch Times or ZeroHedge.

Tyler Durden Sat, 03/09/2024 - 23:20

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Government

Veterans Affairs Kept COVID-19 Vaccine Mandate In Place Without Evidence

Veterans Affairs Kept COVID-19 Vaccine Mandate In Place Without Evidence

Authored by Zachary Stieber via The Epoch Times (emphasis ours),

The…

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Veterans Affairs Kept COVID-19 Vaccine Mandate In Place Without Evidence

Authored by Zachary Stieber via The Epoch Times (emphasis ours),

The U.S. Department of Veterans Affairs (VA) reviewed no data when deciding in 2023 to keep its COVID-19 vaccine mandate in place.

Doses of a COVID-19 vaccine in Washington in a file image. (Jacquelyn Martin/Pool/AFP via Getty Images)

VA Secretary Denis McDonough said on May 1, 2023, that the end of many other federal mandates “will not impact current policies at the Department of Veterans Affairs.”

He said the mandate was remaining for VA health care personnel “to ensure the safety of veterans and our colleagues.”

Mr. McDonough did not cite any studies or other data. A VA spokesperson declined to provide any data that was reviewed when deciding not to rescind the mandate. The Epoch Times submitted a Freedom of Information Act for “all documents outlining which data was relied upon when establishing the mandate when deciding to keep the mandate in place.”

The agency searched for such data and did not find any.

The VA does not even attempt to justify its policies with science, because it can’t,” Leslie Manookian, president and founder of the Health Freedom Defense Fund, told The Epoch Times.

“The VA just trusts that the process and cost of challenging its unfounded policies is so onerous, most people are dissuaded from even trying,” she added.

The VA’s mandate remains in place to this day.

The VA’s website claims that vaccines “help protect you from getting severe illness” and “offer good protection against most COVID-19 variants,” pointing in part to observational data from the U.S. Centers for Disease Control and Prevention (CDC) that estimate the vaccines provide poor protection against symptomatic infection and transient shielding against hospitalization.

There have also been increasing concerns among outside scientists about confirmed side effects like heart inflammation—the VA hid a safety signal it detected for the inflammation—and possible side effects such as tinnitus, which shift the benefit-risk calculus.

President Joe Biden imposed a slate of COVID-19 vaccine mandates in 2021. The VA was the first federal agency to implement a mandate.

President Biden rescinded the mandates in May 2023, citing a drop in COVID-19 cases and hospitalizations. His administration maintains the choice to require vaccines was the right one and saved lives.

“Our administration’s vaccination requirements helped ensure the safety of workers in critical workforces including those in the healthcare and education sectors, protecting themselves and the populations they serve, and strengthening their ability to provide services without disruptions to operations,” the White House said.

Some experts said requiring vaccination meant many younger people were forced to get a vaccine despite the risks potentially outweighing the benefits, leaving fewer doses for older adults.

By mandating the vaccines to younger people and those with natural immunity from having had COVID, older people in the U.S. and other countries did not have access to them, and many people might have died because of that,” Martin Kulldorff, a professor of medicine on leave from Harvard Medical School, told The Epoch Times previously.

The VA was one of just a handful of agencies to keep its mandate in place following the removal of many federal mandates.

“At this time, the vaccine requirement will remain in effect for VA health care personnel, including VA psychologists, pharmacists, social workers, nursing assistants, physical therapists, respiratory therapists, peer specialists, medical support assistants, engineers, housekeepers, and other clinical, administrative, and infrastructure support employees,” Mr. McDonough wrote to VA employees at the time.

This also includes VA volunteers and contractors. Effectively, this means that any Veterans Health Administration (VHA) employee, volunteer, or contractor who works in VHA facilities, visits VHA facilities, or provides direct care to those we serve will still be subject to the vaccine requirement at this time,” he said. “We continue to monitor and discuss this requirement, and we will provide more information about the vaccination requirements for VA health care employees soon. As always, we will process requests for vaccination exceptions in accordance with applicable laws, regulations, and policies.”

The version of the shots cleared in the fall of 2022, and available through the fall of 2023, did not have any clinical trial data supporting them.

A new version was approved in the fall of 2023 because there were indications that the shots not only offered temporary protection but also that the level of protection was lower than what was observed during earlier stages of the pandemic.

Ms. Manookian, whose group has challenged several of the federal mandates, said that the mandate “illustrates the dangers of the administrative state and how these federal agencies have become a law unto themselves.”

Tyler Durden Sat, 03/09/2024 - 22:10

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