Riots continue at TikTok, Salesforce is laying off 1,000 employees and Warby Parker is now worth $ 3 billion. This is your daily crisis for August 27, 2020.
The big story: TikTok CEO resigns
Kevin Mayer, the former Disney executive who joined TikTok as CEO just over 100 days ago, announced his resignation yesterday. While Mayer has likely been tricked into reassuring U.S. lawmakers about the app's Chinese owners, he didn't seem to anticipate this level of conflict. President Donald Trump signed an executive order that would ban TikTok in the US unless it is sold to another company.
"We know that the political dynamics of the past few months have significantly changed the scope of Kevin's future role and we fully respect his decision," a TikTok spokesman said in a statement. "We thank him for his time at the company and wish him all the best."
Walmart has confirmed that it is interested in working with Microsoft to acquire the popular video app.
The technology giants
Salesforce confirms that around 1,000 employees will be laid off despite the monster quarter. Salesforce says "resources will be reallocated to position the company for further growth".
The Google Assistant app now uses your searches to provide personalized recommendations. These recommendations can include podcasts, restaurants, recipes, and more.
Facebook isn't happy with Apple's upcoming ad tracking restrictions. According to the company, Audience Network sales could decrease by more than 50%.
Startups, Financing and Venture Capital
$ 3 Billion Warby Parker Raises $ 245 Million – The eyewear startup has launched a telemedicine service for New York customers that allows them to expand an existing pair of glasses or a contact prescription.
Instacart is charged with "misleading" service charges by the DC Attorney General. The lawsuit alleges that Instacart misled customers into thinking that the 10% service charge was a tip for the deliverer.
Narrative brings in $ 8.5 million when a new data market opens. The goal is to make buying data as easy as buying from Amazon.
Advice and analysis of extra crunch
Alexa von Tobel: Eliminating risk is key to building a startup during an economic downturn. According to Von Tobel, one of the most important exercises in forming LearnVest was creating a business plan.
To achieve scalability, Juni Learning is building a full-stack edtech experience. The startup's path to $ 10 million annual recurring revenue is inspired by Peloton, not Kumon.
What can growth marketers learn from lean product development? – Andrea Fryrear argues that marketers should start by creating campaigns with minimal viability.
(Reminder: Extra Crunch is our subscription membership program designed to democratize information about startups. You can sign up here.)
A Faster, Easier, and Cheaper Way to Go Public – The latest installment of Equity covers direct listings and SPACs.
Here's how to get a second shot at Startup Battlefield – your second chance consists of two wild card entries for the upcoming Battlefield at Disrupt.
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