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Daily Crunch: Peloton CEO to shareholders: ‘Turnarounds are hard work’

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It is Tuesday the 10th of May, and the end of an era as Apple officially retires the iPod after a 20-year run of swinging our tushes, white earbuds dangling against brightly colored backgrounds. – Christine and Haje

The TechCrunch Top 3

  • Peloton’s rough ride: For a bicycle that goes nowhere, Peloton missing its revenue estimates for the first quarter is putting the company on a downhill trajectory. We are now watching how CEO Barry McCarthy will lead his team to turn the red knob to the right, rise out of the saddle, and pedal Peloton into a course correction.
  • IBM tips its hat: To Red Hat, of course. Ron gave us an inside look at how the company has been doing since joining IBM in 2018 — really good, as far as we can tell — with Red Hat giving IBM “some cloud credibility it had been missing” and one of the reasons IBM did so well in its first-quarter earnings.
  • Bitcoin go bye-bye: Jacquelyn spoke to some crypto experts trying to make sense of Bitcoin’s value decrease, which at the time was down more than 50% from its November 2021 peak. It seems like a complicated mess with a lot of acronyms flying around. So much so that even investors in China (remember it banned cryptocurrency) that found a way to still buy and sell tokens are keeping a watchful eye.

Startups and VC

It’s a hardware feast this news cycle on Ye Olde TechCrunch: DJI launched its entry-level quadcopter at under $700. Remarkable raised a round of funding for its e-paper notepad at a unicorn valuation, and the team behind the viral sensation IkeaBot raised $4 million to further develop its Eureka controller.

We loved this piece from Connie about Bonobos footwear company founder Andy Dunn and his work in destigmatizing mental health challenges, speaking out about his “secret battle” against bipolar disorder.

Moar newz:

BNPL in 2022: 4 fintech investors discuss regulation, trends and how to stand out

Hourglass projecting a dollar sign as shadow.
Image Credits: LdF (opens in a new window) / Getty Images

Globally, sluggish wage growth and rising inflation have encouraged shoppers to defer payments on everything from groceries to durable goods.

Affirm, Afterpay and Klarna own 75% of the sector in the U.S., which leaves little room for startups hoping to join the fray. Founders who target emerging markets like Latin America and India may have an easier time, but only if their products and services are clearly differentiated.

To learn more about the state of the industry, Karan Bhasin interviewed four fintech investors:

  • Frances Schwiep, partner, Two Sigma Ventures
  • Melissa Guzy, co-founder and managing partner, Arbor Ventures
  • Jonathan Whittle, co-founder and partner, Quona Capital
  • Jason Brown, partner, Victory Park Capital

In addition to sharing their direct advice for fintech founders, they talked about managing fraud and default risk, BNPL’s growing popularity as a point-of-sale option, and what kinds of investment opportunities they’re looking for.

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

BNPL in 2022: 4 fintech investors discuss regulation, trends and how to stand out

Big Tech Inc.

It looks like EU internal market commissioner Thierry Breton had a good day yesterday, hopefully crossing a few things off of his bucket list, including meeting Elon Musk and essentially getting his OK on the EU’s Digital Services Act, which aims to provide more governance rules around “harmonizing content” and consumer protections while also fining those who breach them. Meanwhile, the U.K. is pushing forward with its data reform bill targeting Big Tech.

Some other Tuesday tidbits:

  • Nintendo shared a new milestone today — over 100 million annual playing users. That’s a lot of Super Mario Bros. going at the same time. Oh wait, we are behind the times; perhaps it’s better to say Splatoon.
  • The U.S. and some of its allies have decided to formally blame Russia for the Viasat cyberattack that took place in February.
  • Salesforce acquired Troops.ai, which will become part of Slack and build a bunch of Slack bots for sales teams to more easily retrieve and update data.
  • The parent company of Tinder, Match and OkCupid sued Google, alleging the company was trying to maintain a monopoly in the way people pay via the Google Play app marketplace. We think language from the lawsuit says it all: “Ten years ago, Match Group was Google’s partner. We are now its hostage.”
  • While Google is dealing with that, it is also joining with Microsoft, Yahoo and others to provide support behind a proposed New York bill banning the use of controversial search warrants. If passed, New York would be the first state to ban what Zack reported was “so-called geofence warrants and keyword search warrants, which rely on demanding tech companies turn over data about users who were near the scene of a crime or searched for particular keywords at a specific point in time.”

More TechCrunch

After Apple loosened its App Store guidelines to permit game emulators, the retro game emulator Delta — an app 10 years in the making — hit the top of the…

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Welcome to Startups Weekly! We’ve been drowning in AI news this week, with Google’s I/O setting the pace. And Elon Musk rages against the machine.

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IndieBio’s Bay Area incubator is about to debut its 15th cohort of biotech startups. We took special note of a few, which were making some major, bordering on ludicrous, claims…

IndieBio’s SF incubator lineup is making some wild biotech promises

YouTube TV has announced that its multiview feature for watching four streams at once is now available on Android phones and tablets. The Android launch comes two months after YouTube…

YouTube TV’s ‘multiview’ feature is now available on Android phones and tablets

Featured Article

Two Santa Cruz students uncover security bug that could let millions do their laundry for free

CSC ServiceWorks provides laundry machines to thousands of residential homes and universities, but the company ignored requests to fix a security bug.

15 hours ago
Two Santa Cruz students uncover security bug that could let millions do their laundry for free

OpenAI’s Superalignment team, responsible for developing ways to govern and steer “superintelligent” AI systems, was promised 20% of the company’s compute resources, according to a person from that team. But…

OpenAI created a team to control ‘superintelligent’ AI — then let it wither, source says

TechCrunch Disrupt 2024 is just around the corner, and the buzz is palpable. But what if we told you there’s a chance for you to not just attend, but also…

Harness the TechCrunch Effect: Host a Side Event at Disrupt 2024

Decks are all about telling a compelling story and Goodcarbon does a good job on that front. But there’s important information missing too.

Pitch Deck Teardown: Goodcarbon’s $5.5M seed deck

Slack is making it difficult for its customers if they want the company to stop using its data for model training.

Slack under attack over sneaky AI training policy

A Texas-based company that provides health insurance and benefit plans disclosed a data breach affecting almost 2.5 million people, some of whom had their Social Security number stolen. WebTPA said…

Healthcare company WebTPA discloses breach affecting 2.5 million people

Featured Article

Microsoft dodges UK antitrust scrutiny over its Mistral AI stake

Microsoft won’t be facing antitrust scrutiny in the U.K. over its recent investment into French AI startup Mistral AI.

17 hours ago
Microsoft dodges UK antitrust scrutiny over its Mistral AI stake

Ember has partnered with HSBC in the U.K. so that the bank’s business customers can access Ember’s services from their online accounts.

Embedded finance is still trendy as accounting automation startup Ember partners with HSBC UK

Kudos uses AI to figure out consumer spending habits so it can then provide more personalized financial advice, like maximizing rewards and utilizing credit effectively.

Kudos lands $10M for an AI smart wallet that picks the best credit card for purchases

The EU’s warning comes after Microsoft failed to respond to a legally binding request for information that focused on its generative AI tools.

EU warns Microsoft it could be fined billions over missing GenAI risk info

The prospects for troubled banking-as-a-service startup Synapse have gone from bad to worse this week after a United States Trustee filed an emergency motion on Wednesday.  The trustee is asking…

A US Trustee wants troubled fintech Synapse to be liquidated via Chapter 7 bankruptcy, cites ‘gross mismanagement’

U.K.-based Seraphim Space is spinning up its 13th accelerator program, with nine participating companies working on a range of tech from propulsion to in-space manufacturing and space situational awareness. The…

Seraphim’s latest space accelerator welcomes nine companies

OpenAI has reached a deal with Reddit to use the social news site’s data for training AI models. In a blog post on OpenAI’s press relations site, the company said…

OpenAI inks deal to train AI on Reddit data

X users will now be able to discover posts from new Communities that are trending directly from an Explore tab within the section.

X pushes more users to Communities

For Mark Zuckerberg’s 40th birthday, his wife got him a photoshoot. Zuckerberg gives the camera a sly smile as he sits amid a carefully crafted re-creation of his childhood bedroom.…

Mark Zuckerberg’s makeover: Midlife crisis or carefully crafted rebrand?

Strava announced a slew of features, including AI to weed out leaderboard cheats, a new ‘family’ subscription plan, dark mode and more.

Strava taps AI to weed out leaderboard cheats, unveils ‘family’ plan, dark mode and more

We all fall down sometimes. Astronauts are no exception. You need to be in peak physical condition for space travel, but bulky space suits and lower gravity levels can be…

Astronauts fall over. Robotic limbs can help them back up.

Microsoft will launch its custom Cobalt 100 chips to customers as a public preview at its Build conference next week, TechCrunch has learned. In an analyst briefing ahead of Build,…

Microsoft’s custom Cobalt chips will come to Azure next week

What a wild week for transportation news! It was a smorgasbord of news that seemed to touch every sector and theme in transportation.

Tesla keeps cutting jobs and the feds probe Waymo

Sony Music Group has sent letters to more than 700 tech companies and music streaming services to warn them not to use its music to train AI without explicit permission.…

Sony Music warns tech companies over ‘unauthorized’ use of its content to train AI

Winston Chi, Butter’s founder and CEO, told TechCrunch that “most parties, including our investors and us, are making money” from the exit.

GrubMarket buys Butter to give its food distribution tech an AI boost

The investor lawsuit is related to Bolt securing a $30 million personal loan to Ryan Breslow, which was later defaulted on.

Bolt founder Ryan Breslow wants to settle an investor lawsuit by returning $37 million worth of shares

Meta, the parent company of Facebook, launched an enterprise version of the prominent social network in 2015. It always seemed like a stretch for a company built on a consumer…

With the end of Workplace, it’s fair to wonder if Meta was ever serious about the enterprise

X, formerly Twitter, turned TweetDeck into X Pro and pushed it behind a paywall. But there is a new column-based social media tool in town, and it’s from Instagram Threads.…

Meta Threads is testing pinned columns on the web, similar to the old TweetDeck

As part of 2024’s Accessibility Awareness Day, Google is showing off some updates to Android that should be useful to folks with mobility or vision impairments. Project Gameface allows gamers…

Google expands hands-free and eyes-free interfaces on Android