Extra Crunch Tuesday: ‘Edtech is no longer optional’

Welcome to Extra Crunch Tuesday

Natasha Mascarenhas’ most recent investor survey reflects the rapid pace of change in edtech since the COVID-19 pandemic closed campuses a few months ago.

“Edtech is no longer optional,” said David Eichler, a VP at TCV. “It’s a requirement for success.”

According to the VCs she spoke to, remote learning is entering a new phase where soaring valuations, acquisitions and growth reflect an industry in transition.

“Truth is, we have been busier than ever before,” said Jennifer Carolan and Shauntel Garvey of Reach Capital. “Our pipeline has increased 50% year-over-year and we are actively investing in new companies and follow-ons.”

Here’s who Natasha spoke to:

• Ian Chiu, Owl Ventures
• Shauntel Garvey and Jennifer Carolan, Reach Capital
• Jan Lynn-Matern, Emerge Education
• David Eichler, TCV
• Jomayra Hererra, Cowboy Ventures

Thanks very much to everyone who kept everything running smoothly while I was out on vacation last week; I’ll be back with more highlights from Extra Crunch on Friday.

Walter Thompson
Senior Editor, TechCrunch
@yourprotagonist

Read more

Tracking the growth of low-code, no-code startups

Low-code and no-code startups may be the latest tech trend, but they’re not like other bubbles — remember the ICO craze?

Giving non-technical users the ability to create and/or customize software is a literal game-changer; non-coders can create games and apps, refine existing applications to suit their specific needs and iterate faster than before in search of product-market fit.

“We should be in the middle of a huge curve in low-code and no-code adoption,” writes Alex Wilhelm in today’s edition of The Exchange.

To get a sense of “what’s being built and talked about in the space today,” he crafted a list of 2020 funding rounds in the sector.

Read more

TC Early Stage 2020 starts today!

Sponsored by TechCrunch

A two-day virtual event where founders can join small group breakout sessions with top investors and ecosystem experts.

Read more

All B2B startups are in the payments business

Access to the payment systems used on B2B and B2C platforms was once controlled by facilitators like banks and credit card companies, but ACH and mobile apps have turned many services into integrated payments processors.

Companies like Shopify, Toast, Wix,com and GoFundMe are now popular payment facilitators, but they’ve also taken on the liabilities associated with fraud, default, non-compliance and other risk factors.

Everyone’s in the payments business, but how did we get here?

Read more

(How to fix) 5 common UX mistakes in online banking

TechCrunch reporter Steve O’Hear and UX consultant Peter Ramsey co-wrote a piece that examines five common pain points with online banking — and how to solve them. Ramsey’s insights will resonate with anyone who’s ever been placed on hold with their bank:

Before we rip hold music apart — again, it’s a pretty legacy feature — what do you think its intended purpose is?

There are a few studies on this, including suggesting that it helps reduce anxiety and improve cognitive performance. But, remember it was designed in a world with fewer alternatives. Whatever its purpose was, it’s not needed any more.

Read more

The future of work is human

Early-stage venture fund and startup studio Human Ventures has staked out four areas of interest for the next decade:

• new work environments
• lifelong learning
• redefining the résumé
• worker wellbeing

In a guest post, CEO Heather Hartnett explains her firm’s focus on the “human needs economy” as it seeks to connect with founders who are building companies “that address material human problems — specifically those in the areas of health and wellness, the future of work and community.”

Read more

Creating a robust churn-reversal system

In the latest Growth Report column:

• tips for identifying high-value customers at risk of churning
• why you should test screen-recording ads when marketing B2B SaaS products
• using Slack to give customers a better first-time experience

Read more

Immersive chat startups have a very different vision for the future of voice

Can 3D audio enable group chat and enable more realistic AR/VR experiences?

Lucas Matney looked at the latest in immersive audio, which offers users a spatialized experience that could reshape digital events like conferences and concerts.

“These early platforms feel like experimentations, and while their current iterations don’t appear to be the end-all-be-all of immersive audio, they do feel like they’re on to something experience-wise,” he writes.

Read more

Former Spotify marketing exec-turned-VC Sophia Bendz on her love of early-stage investing

Steve O’Hear interviewed Sophia Bendz to learn more about her decision to leave London-based Atomico after nearly five years to join Berlin’s Cherry Ventures.

“It’s been a super intense and fun journey,” she said. “But also it made me understand I can be more valuable and bring more value to the table as an early-stage investor, rather than as a later-stage investor.”

Read more