Innovation Insider - October 29th

Is Bitcoin having a moment?

Bitcoin, the obscure magic internet money that started among a group of “cypherpunks” and a mailing list, seems to be going mainstream. This past week, Microsoft unveiled plans to include a proposal for assessing investment in Bitcoin at its upcoming shareholder meeting on December 10, 2024.

This proposal aligns with a trend among corporations to diversify assets by considering Bitcoin as a potential inflation hedge. Microstrategy, led by Executive chairman Michael Saylor, has been leading the corporate adoption of Bitcoin since early 2020. Microstrategy currently holds 252,220 out of 21,000,000 Bitcoin and they don’t seem to be slowing down.

Highlighted in Microsoft’s Proposal (and a tweet from Michael Saylor to Microsoft CEO Satya Nadella) is the fact that while they are both technology companies, Microstrategy which holds Bitcoin on its balance sheet, has had its stock outperform Microsoft stock this year by 313%, despite doing only a fraction of the business Microsoft has.

There’s game theory at play here. If Microsoft enters the arena, it could very well trigger a cascading effect among the major tech companies. On top of that, as recently mentioned by Chamath Palihapitiya, it seems like Bitcoin may be the resounding inflation hedge asset for the next 50-100 years.

Not to mention we’ve got other Billionaire tech founders like Michael Dell from Dell Computers tweeting Bitcoin memes.

Signs of things to come or marking the top of the Bitcoin bubble? Let us know your thoughts.

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Let’s jump into this week’s highlights.

News

Meta's Ray-Ban smart glasses have outperformed traditional Ray-Bans in sales at about 60% of stores across Europe, the Middle East, and Africa, according to EssilorLuxottica's CFO. The success of these smart glasses, enhanced by AI features, is notable even before the full rollout of the latest upgrades.

23andMe is currently facing significant challenges that threaten its future, primarily stemming from a drastic decline in its market valuation, which has plummeted by 99% since its peak. The company, once valued at $6 billion, is struggling financially and could potentially face bankruptcy by next year. Recent issues include a major data breach affecting nearly 7 million customers and a complete board resignation, raising serious concerns about its governance and direction.

The Irish Data Protection Commission has imposed a record fine of €310 million ($335 million) on LinkedIn for violating GDPR regulations regarding user data. The investigation revealed that LinkedIn conducted behavioral analyses of personal data for targeted advertising without obtaining proper user consent.

Startup Funding Downturn Continues Despite AI’s Ascent. The Q3 2024 Crunchbase funding recap indicates a 16% decline in global venture capital investments, totaling $66.5 billion. This included significant contributions from AI startups, which received $19 billion. North America saw reduced early-stage investments, while Asia and Europe faced notable decreases. Despite the overall downturn, certain sectors like AI continue to attract substantial interest, signaling a complex investment landscape. For more insights, you can read the full recap.

Developer Profiles of the Week

Daniel is a fullstack Engineer with 7 years of experience. He lives in Austin, Texas. Daniel primarily works with React / Node and TypeScript. Daniel has experience with PostgreSQL and MongoDB in addition to some experience with AWS. Daniel is available to join a new team and hit the ground running.

Victor is a senior Systems Administrator and DevOps Engineer. Victor is quite experienced having worked with Openstack, Puppet Orchestration, HAProxy, Ansible, OpenDNS and Kubernetes.. He has great communication skills. Victor is based in Brazil and would be a rockstar to add to any team in need.

Please email us at hiring@donestreet.com to learn more about these talented developers and how you can bring them onto your team.

Engineering and Security

Newly stable Next.js compiler is faster and supports larger builds. The latest update to Next.js introduces a newly stable compiler that enhances performance by supporting larger builds and speeding up compilation times. This version addresses previous issues, providing a more efficient development experience.

A recent report reveals that 49% of enterprises underestimate the risks associated with SaaS applications, with 34% of security professionals unaware of how many such applications their organizations deploy. This disconnect leads to vulnerabilities, as many security teams focus solely on technical issues while neglecting the impact of organizational culture on security practices.

UnitedHealth's Change Healthcare experienced a significant ransomware attack, affecting over 100 million individuals and disrupting healthcare services. The cybercriminal group AlphV claimed responsibility, stealing 6 TB of data and demanding a ransom. To restore operations, UnitedHealth reportedly paid $22 million in Bitcoin.

The Lazarus Group has been exploiting vulnerabilities in Google Chrome, particularly targeting users with malicious browser extensions. This campaign aims to gain unauthorized access to sensitive data, leveraging social engineering tactics to manipulate victims into installing harmful software.

HR Notices

A recent survey reveals that new talent acquisition and recruitment technologies are making it easier to fill open positions. 64% of companies plan to increase their recruiting budgets in the next year, up from 50% the previous year. These technologies are helping organizations adapt to ongoing labor shortages by streamlining hiring processes and improving candidate experiences.

Rental car startup Kyte is undergoing significant restructuring and is slashing staff as it reduces its workforce and limits operations to just two markets in an effort to survive amid financial challenges. The company aims to streamline its services and focus on profitability. Take a look and see if you can find any great talent.

Google's AI-focused venture fund has invested in Seattle-based startup Cascade AI, which develops a chatbot aimed at enhancing human resources processes. This investment reflects growing interest in AI technologies within HR, emphasizing automation and improved communication in workforce management.

Funding

Waymo, a subsidiary of Alphabet, has secured $56 billion in funding to expand its autonomous ride-hailing services. This significant investment will support the scaling of its operations and the development of its self-driving technology.

Physical Intelligence has raised $70 million in seed funding to develop AI-powered robots for a wide range of applications. The investment, led by Thrive Capital, aims to create foundation models and learning algorithms applicable across various robotic hardware.

Perplexity AI has raise $500 million at an $8 billion valuation, reflecting its growth in the AI sector. The company, which develops advanced AI technologies, has also attracted drone racers who have been recruited by the military for their expertise in drone operations.

Stream.Security, a provider of real-time cloud security solutions, has successfully raised $30 million in a Series B funding round. This new capital will enable the company to enhance its Cloud Twin technology, which offers continuous threat exposure management and helps security operations teams respond quickly to potential vulnerabilities in cloud environments.

Sidero Labs has raised $4 million in funding, led by Hiro Capital with participation from the Sony Innovation Fund. The San Francisco-based startup focuses on simplifying the management of Kubernetes and containerized applications. Its key products include Talos Linux, an API-managed operating system for Kubernetes, and Omni, a SaaS platform that streamlines Kubernetes deployment and management.

Acquisitions / Mergers

Stripe has entered into an $1.1 billion acquisition agreement for Bridge, a stablecoin platform aimed at enhancing digital payment solutions. This acquisition represents Stripe's largest deal to date and signifies a major move into the cryptocurrency space.

Resource of the week

PrivacyTests.org evaluates the privacy features of various web browsers by conducting tests on their default settings. The site compares popular browsers like Brave, Chrome, Firefox, and Safari, focusing on their ability to prevent tracking and manage data.

Product of the week

Daze is a creative, AI-powered messaging app designed specifically for Gen Z and set to launch on November 4, 2024. The app allows users to express their creativity through features like multi-colored messages, stickers, graphics, and various fonts. It transforms traditional chat into an interactive experience similar to that of social media platforms like Instagram. Daze has already garnered significant attention, boasting over 156,000 sign-ups and 48 million views across TikTok and Instagram.

Book Recommendation of the Week

Start with Why: How Great Leaders Inspire Everyone to Take Action by Simon Sinek introduces the concept of the "Golden Circle," which consists of three concentric circles: Why, How, and What. Sinek argues that successful leaders and organizations begin by clearly articulating their Why—their purpose, cause, or belief. This foundational clarity inspires loyalty and motivates action among employees and customers.

This Day in History

On October 29, 1929, as investors trade 16,410,030 shares on the New York Stock Exchange in a single day, the stock market crashes on Black Tuesday.

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