News Headline: Shutting down startups is big business

Wednesday, February 28, 2024

Shutting down startups is big business

Wednesday, February 28, 2024

Today's TechCrunch AM is full of stories for e-commerce and HRtech founders, and notes on what happens when startups fail. Hint: Stripping down companies for parts is not a simple task and requires some serious tooling. We also have some good reading on tech layoffs, updates from Mobile World Congress, and a startup merger bubbling up over in India.

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Thrasio files for bankruptcy: After raising more than $3 billion to buy up and aggregate small e-commerce brands into a single company, Thrasio has filed for Chapter 11 bankruptcy protection to help it manage its debts and raise $90 million to fund its operations in the meanwhile. What happened? E-commerce brands lost their pandemic tailwinds, rising interest rates hurt borrowing, and consumer tastes shifted.
Deel scoops up Zavvy: Deel, a late-stage startup that helps other companies higher internationally, is buying Zavvy, a German startup that uses AI to help with "people development" tools. Deel's revenue has expanded quite quickly over the years, and it has even become profitable by some metrics. Expect more consolidation in this space if the larger players finally decide to loosen their purses.
Shutting down startups is big business: Big rounds get all the attention, but the reality is that most startups fail. When that happens, they need to be shut down smartly so that at least some value is preserved, which is a space that startups have entered of late. Several such companies have raised capital recently, especially with more startups facing hardships, Mary Ann Azevedo reports. Perhaps the real way to make money during a venture slowdown is to build startup-shaped coffins.

Image Credits: Yuichiro Chino / Getty Images

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Bumble is slashing 30% of its workforce: Dating app Bumble is cutting nearly a third of its workforce, or about 350 people. The company's results fell short of market expectations, as did its Q1 forecast, and all that together have resulted in unhappy investors: its shares are down 10% before the bell.

First private lunar lander expiring early: I don't want to make light of how awesome it is that Intuitive Machines landed anything on the Moon. But the fact that its lunar lander landed on its side after traveling through the great vacuum of space is honestly pretty funny. It's a big letdown for Intuitive Machines, but it will get back to the Moon. When it does, I'm sure that it will land its next lander right-side up.

Don't ask AI about upcoming elections: Everyone knows someone who uses ChatGPT as their search engine of choice. They might want to rethink that though: When it comes to voting and elections, current AI models are lackluster at best, Devin Coldewey reports. How much of an impact will AI have on elections this year? We're about to find out.

HTC's Vive business has become an enterprise success: It's an open question how well Apple's new MR headset will sell, and if Apple has managed to create a new platform that developers will flock to. But elsewhere in the AR/VR world, some companies are seeing success. HTC's Vive headsets have been quietly winning in the enterprise sector, Brian Heater reports.

All things MWC: If you need an overview of the most important tech revealed at Mobile World Congress, head here. What caught our eye, though, was U.K.-based smartphone maker Nothing's new, budget-friendly handset, the Nothing Phone (2a).

Newsmast wants to make Mastodon a bit easier to use: The race to replace X remains intense, and one company is making strides in helping distributed microblogging services simpler. Newsmast combines content from various Mastodon servers into a single interface, allowing users to follow specific topics. It remains to be seen if users dig it, but I think it's great to see neat social projects in the era of Meta's hegemony.

Image Credits: Bumble

Before you go

Media startup Dailyhunt is in late-stage talks to buy Koo, a Bengaluru-based social network. Financial terms are being hammered out, but the deal could wind up as a share-swap when it closes. Koo has raised $60 million to date, so this could be a significantly priced transaction.