Roundup of news and ideas from the world of startups – Week ending 27th Jan 2019
News you can use
Electric Truck Startup Steps In Where Other Automakers Left Off – Gas-powered pickups and SUVs now make up two-thirds of U.S. auto sales. But, until recently, truck buyers looking for an American-made electric-powered pickup would be out of luck. America’s small electric vehicle fleet is just that — small, mostly cars and sedans. That’s where a new startup automaker saw an opening. Rivian plans to make battery-powered trucks and SUVs in a former auto plant in central Illinois. It’s the same plant where Wade Jensen’s career began three decades ago, when Mitsubishi and Chrysler teamed up there to build cars.
Corporate M&A
Indian education technology startup Byju’s buys Osmo for $120 million – Indian education technology firm Byju’s (officially known as Think and Learn Private Ltd) has announced it has acquired education gaming and app startup Osmo for $120 million. Firm says near future for education game company involves more content, lower cost
What Should Digital Health Learn From Propeller Health’s $225 Million Acquisition – In December of 2018, ResMed announced that it has entered into a definitive agreement to acquire Propeller Health for $225 Million. ResMed and Propeller Health are expected to finalise the deal before March 30, 2019. Propeller Health will continue to operate as a standalone business, maintaining its product solutions, as well as its partnerships with pharmaceutical and healthcare organisations. Propeller Health is currently considered a world leader in providing digital health solutions for chronic obstructive pulmonary disease (COPD) and asthma patients and was named a “2017 Most Innovative Company” by Fast Company.
Microsoft acquires Citus Data, open-source startup – Microsoft recently announced that it has acquired open-source company Citus. The move comes at a time when the tech oligopoly is trying to expand its cloud offering and also commitment to open source. Last year, Microsoft acquired GitHub in a $7.5 billion deal. The news was first tweeted by Citus
Airbnb acquires Danish startup used to book meeting spaces for just a couple hours or days – Airbnb has acquired Gaest.com, a Danish platform for renting meeting spaces for short periods of time, the company announced. The acquisition marks Airbnb’s first big move into office spaces, where it will compete with heavy-weights like the $47 billion WeWork. Gaest.com will remain a separate app for the time being.
Failed Startups
WarnerMedia shuts its technology investment arm – Expunging the legacy of TimeWarner, WarnerMedia has halted its investment in digital media and technology startup firms. This means an uncertain future for companies in the current funding round. Time Warner (the predecessor of WarnerMedia) was a significant investor in various digital media and technology companies. This era seems to be at an end with WarnerMedia media signalling that it will not be continuing with current investments. This is perhaps a reflection of the precarious nature of the digital publishing sector.
Meal-delivery startup Munchery shuts down – The business of food and food delivery is tough. On-demand meal-delivery startup Munchery is joining the list of failed startups. Munchery made an announcement on its blog.