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Top News
The Justice Department today proposed a rollback of legal protections that online platforms have enjoyed for more than two decades, in an effort to make tech companies more responsible in how they police their content. As the WSJ notes, it's highly unlikely to be adopted by a divided Congress, in an election year. Still, the "move represents an escalation in the continuing clash between the White House and big tech firms such as Twitter, Alphabet’s Google unit and Facebook."
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Former Facebook Exec Thinks Big Tech Will Get Broken Up "Over the Next 10 Years"
Investor Chamath Palihapitiya made part of his fortune at Facebook, where he was a vice president for more than four years, leaving one year before its 2012 IPO.
Though he has voiced concerns numerous times since about his former employer, he also believes it has played an active role in enabling users to report and disseminate important information. For example, he suggests it was smart phones and social media that has made so many Americans aware of the George Floyd tragedy and enabled citizens in the U.S. and at least 12 other countries to organize protests against racism. Without these platforms, he suggests, we might even be engaged in a traditional civil war in this country.
That doesn't mean Facebook or others of its gigantic peers are any more immune to be regulated, however -- not in his view. As Palihapitiya said today of the companies during an online tech event this morning: "Are they going to get broken up? Yes. Will every single government go after them? Absolutely."
His more specific prediction is that Facebook, as well as Amazon, Google, and Apple, will continue to be investigated and fined by regulators around the world until they are no longer the leviathans they have become. "First, they'll taxed to death, then they'll get trust-busted," said Palihapitiya.
He doesn't think it will take all that much longer, either.
While investors are currently being rewarded for "going long" on the companies as they grow largely unabated, Palihapitiya said that, "on the margin, over the next 10 years . . . regulators will get their way."
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Massive Fundings
Bespin Global, a 22-year-old, South Korea-based cloud management platform, has raised $75 million in Series C funding from SK Telecom and DY Holdings. More here.
Contentful, a seven-year-old, Berlin, Germany-based omni-channel content. platform, has raised an $80 million Series E funding round led by Sapphire Ventures, with participation from General Catalyst, Salesforce Ventures and a number of other new and existing investors. The company has now raised a total of $158.3 million. TechCrunch has more here.
Credo, a six-year-old, San Jose, Ca.-based semiconductor maker, raised $100 million in Series D funding. Funds and accounts managed by BlackRock led the round. More here.
GreenLight Biosciences, a 12-year-old, Boston-based company that's using RNA products for agricultural and life sciences applications, has raised $102 million in Series D funding. Morningside Ventures led the round and was joined by investors including S2G Ventures, Cormorant Asset Management, Continental Grain Company, Fall Line Capital, Tao Capital Partners, Baird Capital, MLS Capital Fund II, Lewis and Clark AgriFood and Lupa Systems. Crunchbase News has more here.
Outreach, a seven-year-old, Seattle-based sales engagement platform, has raised $50 million in funding led by Sands Capital, while Salesforce Ventures and Operator Collective also participated. TechCrunch has more here.
Pagaya, a four-year-old, New York- and Tel Aviv-based fintech using machine learning algorithms and big data analytics to manage institutional assets, has raised $102 million in Series D funding. Aflac Global Ventures, Poalim Capital Markets, Viola Ventures, Oak HC/FT, Clal Insurance, GF Investments, and Siam Commercial Bank participated in the round, which brings the company's total funding to $215 million to date. Calcalist has more here.
QuantumScape, a 10-year-old, San Jose, Ca.-based Stanford University spinout that's developing solid-state batteries, has raised $200 million from earlier backer Volkswagen. TechCrunch has more here.
Big-But-Not-Crazy-Big Fundings
Degreed, an eight-year-old, Pleasanton, Ca.-based platform designed to help employees learn new skills, has raised $32 million in new funding led by Owl Ventures. The company has now raised $182 million altogether. More here.
Onna, a five-year-old, New York- and Barcelona-based platform for integrating workplace apps, raised $27 million in Series B funding. Atomico led the round, joined by Glynn Capital, Dawn Capital, Nauta Capital and Slack Fund. TechCrunch has more here.
Proprio, a four-year-old, Seattle-based surgical navigation company, has raised $23 million in Series A funding. DCVC led the round, joined by Cota Capital, BOLD Capital Partners and Alan Frazier. GeekWire has more here.
Splyt, a five-year-old, London-based company that helps app operators integrate mobility options with other services, has raised $19.5 million in funding led by SoftBank as the Japanese conglomerate "seeks to build its own super app," reports Reuters. More here.
Unbounce, an 11-year-old, Vancouver-based landing page optimization startup, has raised C$52 million ($38.4 million) led by Crest Rock Partners. TechCrunch has more here.
Upgrade, a four-year-old, San Francisco-based consumer lending venture founded by Renaud Laplanche (who also founded LendingClub), has raised $40 million in Series D funding led by Santander InnoVentures, TechCrunch has more here.
Uptycs, a four-year-old, Waltham, Ma.-based security analytics company, has raised $30 million in Series B funding led by Sapphire Ventures, with participation from Comcast Ventures and ForgePoint Capital. TechCrunch has more here.
Small Fundings
careMESH, a four-year-old, Reston, Va.-based patient notification platform, raised $5 million in seed funding co-led by Assurance Capital and Pavey Family Investments. More here.
CognitOps, a two-year-old, Austin, Tex.-based warehouse automation startup, has raised $3 million in seed funding led by Chicago Ventures, with participation from Schematic Ventures, CEAS Investments, and Churton Ventures. Crunchbase News has more here.
DroneBase, a six-year-old, L.A.-based provider of drone pilots for industrial services companies, raised $7.5 million in Series C funding from Valor Equity Partners, Razi Ventures, and earlier backers Union Square Ventures, Upfront Ventures, Hearst Ventures, Pritzker Group Venture Capital, and DJI. TechCrunch has more here.
Dumpling, a three-year-old, Seattle-based platform aimed at enabling individuals to set up their own grocery shopping and delivery businesses, has raised $6.5 million in Series A funding. Forerunner Ventures led the round, joined by earlier backers Floodgate and FUEL Capital. Crunchbase News has more here.
MyTutor, a seven-year-old, U.K.-based platform connecting secondary school students with tutors, has raised £4 million ($5 million) in funding led by earlier backer Mobeus Equity Partners. The company has now raised £14 million altogether. EU Startups has more here.
Sorcero, a three-year-old, Washington, D.C.-based natural language processing (NLP) platform that aims to help with decision-making for enterprises working in the life sciences and insurance sectors, has raised $3.5 million co-led by Leawood VC and WorldQuant Ventures. Technical.ly has more here.
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New Funds
Alphabet today laid out a spate of changed today designed to diversify its management, its products, and startup. Among them, the company said it is setting aside $100 million to fund participation in Black-led capital firms, startups and organizations supporting Black entrepreneurs, including increasing its investment in Plexo Capital (which we'd written about last week). We have a bit more here.
FTV Capital, the 22-year-old, San Francisco-based venture firm that invests primarily in financial services companies, has raised $1.2 billion for its sixth growth equity fund. More here.
Square Peg Capital, an eight-year-old, Melbourne, Australia-based venture firm, has raised A$350 million ($242 million) for its latest fund. Bloomberg has more here.
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People
Netflix CEO Reed Hastings is committing $120 million to institutions dedicated to the higher education of students of color. Hastings will donate $40 million each to the United Negro College Fund and historically Black Spelman and Morehouse colleges. “There are many good places to donate, but the [historically Black colleges and universities] are 150 years old, incredibly resilient, producing an amazing number of Black graduates,” Hastings tells CNBC.
eBay has confirmed that ex-CEO Devin Wenig is the person who allegedly ordered six eBay employees to initiate that completely insane cyberstalking campaign that you likely read about earlier this week.
More than 70 employees at Mark Zuckerberg’s philanthropy are calling for significant internal change at the organization to combat systemic racism. It’s a "rare display of activism inside the walls of a major charity," reports Vox.
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Essential Reads
The plot thickens (maybe): Facebook’s $5.7 billion investment in India’s Reliance Jio Platforms -- a bet that will help the American social media juggernaut make inroads into tens of millions of shops in the country -- is being reviewed by India's antitrust watchdog.
Uber is now getting into software sales. According to Bloomberg, the company is making the technology that powers its ride-hailing business available to others, starting with public transit agencies.
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Detours
The ring the NBA is using to fight the coronavirus.
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Retail Therapy
Rapid raft for a quick escape (or . . . just drifting).
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