The Information

Illustration by Hae Jin Park.

The New Startup Trend: Founders Say ‘No’ to the Highest VC Offers

By Kate Clark · Aug 19, 2021 12:34pm PDT · 8 comments

Earlier this month, Jijo Sunny found himself weighing two offers: An angel investor wanted to take a 1% stake in his 3-year-old creator economy startup for $500,000, at a valuation of $40 million, while a more established VC fund proposed buying a 5% stake at a far higher valuation of $60 million. He chose the lower-priced deal. Startup founders... Earlier this month, Jijo Sunny found himself weighing two offers: An angel investor wanted to...

An Amazon worker at a company warehouse in Raleigh, North Carolina, in June. Photo by Bloomberg

Amazon Provides Free Covid Test Kits for Employees in California

By Mark Di Stefano · Aug 18, 2021 11:45am PDT

Last month, when Amazon announced it would scrap an ambitious on-site Covid-19 testing program for its warehouse workers, the decision raised eyebrows, given the surge in cases across the U.S. But now, Amazon has begun notifying its workers in California—where it employs more people in than in any other state—that it will offer free... Last month, when Amazon announced it would scrap an ambitious on-site Covid-19 testing program...

Photo of Lina Khan by AP; illustration by Mike Sullivan

Lina Khan Gets to Work at the FTC

By Josh Sisco · Aug 17, 2021 6:00am PDT · 1 comment

Once Joe Biden was elected president, companies contemplating mergers knew the U.S. government would take a harder line on deal making. Still, they figured it would take regulators a little time to find their groove amid the many layers of bureaucracy in Washington. Lina Khan had a different idea. Since she took over the Federal Trade... Once Joe Biden was elected president, companies contemplating mergers knew the U.S. government...

ByteDance headquarters in Beijing. Photo by AP; illustration by Mike Sullivan

Beijing Tightens Grip on ByteDance by Quietly Taking Stake, China Board Seat

By Juro Osawa and Shai Oster · Aug 16, 2021 6:00am PDT

ByteDance headquarters in Beijing. Photo by AP; illustration by Mike Sullivan

Beijing Tightens Grip on ByteDance by Quietly Taking Stake, China Board Seat

By Juro Osawa and Shai Oster · Aug 16, 2021 6:00am PDT

For months, China has sought to bring its bustling internet sector to heel with an intensifying series of antitrust crackdowns and data security probes. In one example that hasn’t been previously reported, the Chinese government in April quietly took a stake and a board seat in TikTok owner ByteDance’s key Chinese entity, according... For months, China has sought to bring its bustling internet sector to heel with an intensifying...

YouTube's office building in San Bruno, Calif. Photo by AP.

YouTube Poses Rising Competition—for Publishers on YouTube

By Sahil Patel · Aug 13, 2021 6:01am PDT · 2 comments

YouTube’s ad business is booming. But one group of YouTube program producers—media companies that sell their own ad spots on the platform—are finding the boom isn’t quite as bountiful. The Google-owned video giant has become so adept at selling ad space through automated auctions that it is now massively underpricing... YouTube’s ad business is booming. But one group of YouTube program producers—media...

Instacart founder Apoorva Mehta. Photo by Bloomberg.

DoorDash Recently Held Talks to Buy Instacart

By Josh Sisco, Martin Peers and Jessica E. Lessin · Aug 11, 2021 3:36pm PDT · 2 comments

DoorDash held talks to buy Instacart over the past two months, say people familiar with the situation, for a price that likely would have been between $40 billion and $50 billion. It would have combined a leading restaurant-delivery service with one of the leading grocery-delivery services. But the talks fell apart in recent weeks, at least... DoorDash held talks to buy Instacart over the past two months, say people familiar with the...

Illustration by Jesus Escudero

How Three Startups Are Racing to Beat Amazon in One-Click Checkouts

By Malique Morris · Aug 11, 2021 10:55am PDT

For more than a decade, Amazon’s one-click–checkout feature gave it an edge over other online retailers by eliminating the hassle of reentering passwords and payment information. Then four years ago, the patent for that process expired. That has opened the door to a cluster of startups that have developed similar technology for... For more than a decade, Amazon’s one-click–checkout feature gave it an edge over...

Photo by Bloomberg. Art by Mike Sullivan

How Ruth Porat Tamed Google’s Spending Binge

By Sarah Krouse · Aug 11, 2021 6:01am PDT · 8 comments

Photo by Bloomberg. Art by Mike Sullivan

How Ruth Porat Tamed Google’s Spending Binge

By Sarah Krouse · Aug 11, 2021 6:01am PDT · 8 comments

For several years, a team inside X—the secretive research lab within Alphabet, Google’s parent company—has been working on a gadget to give people augmented-hearing abilities that would let them listen to select voices in a crowd. Recently, though, X told the team that they would no longer be pursuing the project, known as... For several years, a team inside X—the secretive research lab within Alphabet,...

Dara Khosrowshahi, CEO of Uber. Photo by Bloomberg

FTC Investigating Uber’s Gopuff Partnership Alongside Drizly Deal

By Josh Sisco and Mark Di Stefano · Aug 10, 2021 3:45pm PDT

The Federal Trade Commission is scrutinizing a partnership struck in May between Uber and Gopuff that allows people to order items from Gopuff through the Uber Eats delivery app, according to two people familiar with the matter and a document seen by The Information. The FTC is looking to see whether the agreement could hamper competition in... The Federal Trade Commission is scrutinizing a partnership struck in May between Uber and Gopuff...

Illustration by Mike Sullivan

As Cloud Customers Whine About AWS Bills, Cisco Looks to Woo Them Back to Data Centers

By Kevin McLaughlin · Aug 6, 2021 10:00am PDT · 2 comments

Cloud computing providers such as Amazon Web Services have become widely accepted by businesses that don’t want to manage their own data centers, but some AWS customers continue to grumble about the high costs of the cloud. Even the most sophisticated tech companies have stumbled in managing those expenses. Seeking to capitalize on that... Cloud computing providers such as Amazon Web Services have become widely accepted by businesses...

Illustration by Danielle Davis

An Old VC Taboo Fades: More Firms Invest in Rivals

By Berber Jin · Aug 6, 2021 6:00am PDT · 2 comments

In early 2020, venture firms CapitalG and IVP each considered investing in Olive, a startup using artificial intelligence to automate repetitive tasks for healthcare workers. But the two firms ultimately passed on the potential investment, in part because their respective partners concluded it could conflict with both companies’ prior... In early 2020, venture firms CapitalG and IVP each considered investing in Olive, a startup using...

Chinese President Xi Jinping. Photo: Bloomberg

Chinese Government Invested in the Same Tech Companies It’s Now Attacking

By Shai Oster and Juro Osawa · Aug 5, 2021 6:00am PDT

Chinese President Xi Jinping. Photo: Bloomberg

Chinese Government Invested in the Same Tech Companies It’s Now Attacking

By Shai Oster and Juro Osawa · Aug 5, 2021 6:00am PDT

A month ago, China’s top internet regulator launched a cybersecurity probe into Chinese truck-hailing company Full Truck Alliance, causing its share price to plunge less than two weeks after its initial public offering on the New York Stock Exchange. Yet the same internet regulator controls an investment fund that owns shares in the... A month ago, China’s top internet regulator launched a cybersecurity probe into Chinese...

Attorney-General Merrick Garland. Photo by Bloomberg

DOJ Weighing a Lawsuit to Block UnitedHealth’s $8 Billion Change Purchase

By Josh Sisco · Aug 3, 2021 2:42pm PDT

The U.S. Department of Justice is weighing a possible lawsuit to block UnitedHealth’s $8 billion purchase of health care analytics and technology vendor Change Healthcare, according to people familiar with the matter. If the DOJ proceeds with litigation, it would be the latest sign that the Biden administration is aggressively pursuing... The U.S. Department of Justice is weighing a possible lawsuit to block UnitedHealth’s $8...

Workers at a store in Brazil, in May 2020. With more shoppers at home, online e-commerce surged in Brazil and elsewhere in Latin America last year. Photo: Bloomberg

Nuvemshop, a Shopify Rival in Latin America, Valued at $2 Billion by Tiger Global

By Berber Jin · Aug 3, 2021 12:35pm PDT

Nuvemshop, a Latin American e-commerce startup similar to Shopify, is raising a new round of funding led by Tiger Global Management that could value the company at $2 billion including the new capital, according to a person familiar with the matter. The Series E round would add to the $90 million the São Paulo–based Nuvemshop raised... Nuvemshop, a Latin American e-commerce startup similar to Shopify, is raising a new round of...

Facebook CEO Mark Zuckerberg in Munich in 2020. Photo: Bloomberg.

Facebook Researchers Hope to Bring Together Two Foes: Encryption and Ads

By Sarah Krouse and Sylvia Varnham O'Regan · Aug 3, 2021 6:10am PDT · 2 comments

Facebook is bulking up a team of artificial intelligence researchers, including a key hire from Microsoft, to study ways of analyzing encrypted data without decrypting it, the company confirmed. The research could allow Facebook to target ads based on encrypted messages on its WhatsApp messenger, or to encrypt the data it collects on billions of... Facebook is bulking up a team of artificial intelligence researchers, including a key hire from...

TaxBit co-founders Justin Woodward (left) and Austin Woodward (right). Photo: TaxBit, Shutterstock.

Crypto Software Startup TaxBit Triples Valuation in Insight-Led Round

By Kate Clark · Aug 2, 2021 12:39pm PDT · 1 comment

TaxBit co-founders Justin Woodward (left) and Austin Woodward (right). Photo: TaxBit, Shutterstock.

Crypto Software Startup TaxBit Triples Valuation in Insight-Led Round

By Kate Clark · Aug 2, 2021 12:39pm PDT · 1 comment

TaxBit, a startup that develops tax software for traders of cryptocurrency, is raising over $100 million at a $1.5 billion valuation in a new funding round, according to three people with direct knowledge of the matter. Insight Partners, a New York-based VC firm, is one of the lead investors, one of the people said. The new round would more than... TaxBit, a startup that develops tax software for traders of cryptocurrency, is raising over $100...

Illustration by Mike Sullivan

Amazon Installed Cameras to Track Drivers. New Documents Reveal How They Work.

By Mark Di Stefano · Aug 2, 2021 6:01am PDT

Amazon raised privacy hackles earlier this year with a plan to put high-tech video cameras in delivery vans to keep tabs on its drivers’ attention to safety. Now confidential documents viewed by The Information show how Amazon is using the devices to collect safety data about drivers that can affect the profits of the independent companies... Amazon raised privacy hackles earlier this year with a plan to put high-tech video cameras in...

Nvidia CEO Jensen Huang. Photo by Bloomberg

China Antitrust Officials Delay Review of Nvidia’s $40 Billion Arm Acquisition

By Josh Sisco · Jul 30, 2021 6:00am PDT · 2 comments

It’s not just Chinese tech companies that are facing difficulties with China’s ruling party. Take Nvidia’s $40 billion takeover of chip designer Arm. While China’s competition regulators have been talking to the two companies since early this year, the agency’s formal review hasn’t even started yet, according... It’s not just Chinese tech companies that are facing difficulties with China’s ruling...

Ramp co-founders Karim Atiyeh (left) and Eric Glyman. Photo courtesy of Ramp.

Founders Fund, Iconiq Value Ramp at $3.8 Billion in New Funding Round

By Kate Clark · Jul 29, 2021 3:25pm PDT

Corporate credit card startup Ramp is raising its fourth round of venture funding in under eight months, underscoring how back-to-back fundraising rounds—with relatively little business progress in between—is becoming the norm for startups in hot fields such as financial services. Founders Fund is leading a new funding round that... Corporate credit card startup Ramp is raising its fourth round of venture funding in under eight...

Mike Sullivan

Revenue Surges at Google, Snap as Shift to Digital Ads Accelerates

By Sarah Krouse, Sylvia Varnham O'Regan and Sahil Patel · Jul 28, 2021 6:01am PDT

Mike Sullivan

Revenue Surges at Google, Snap as Shift to Digital Ads Accelerates

By Sarah Krouse, Sylvia Varnham O'Regan and Sahil Patel · Jul 28, 2021 6:01am PDT

Dell is rethinking how it spends this year’s ad budget. The computer maker is likely to shift as much as 15% of the nearly $100 million it typically spends on TV advertising in the Americas to digital ads, according to a person familiar with the plans. The company and other large brands are accelerating a yearslong shift in spending toward... Dell is rethinking how it spends this year’s ad budget. The computer maker is likely to...