Mastodon founder rejects investment offers

Twitter’s competitor is expected to remain non-profit. Also: Instacart lowers its valuation to ten billion dollars and Chinese tech companies are still dependent on the United States.

According to the founder, the microblogging site does not want to make the same mistakes as Twitter.
Rafael Henrique/SOPA Images/LightRocket via Getty Images

Good morning! While you slept, work continued elsewhere on the digital stage.

Key topics:

mastodona microblogging site that since the Twitter– Support by Elon Musk Crowded in late October, turned down more than five investment offers from Silicon Valley venture capital firms in recent months. So said their founder and CEO Eugene Rochko the Financial Times. According to the German-Russian software developer, these investors have offered to invest “hundreds of thousands of dollars” to support the site’s rapid growth. Rochko said he turned down all offers because he wanted Mastodon to remain a non-profit organization. The platform is currently funded by donations. The founder did not reveal which venture capital firms had made offers to him.

The Founding Scene reported last week that Mastodon was one of the biggest beneficiaries of Elon Musk’s chaotic takeover of Twitter. Registrations for the site were approaching 10,000 per hour at the height of the Twitter chaos in November. However, this also seems to have caused performance issues as the servers struggled to cope with the increased traffic. Twitter itself also grappled with an international outage on Wednesday and Thursday. [Mehr bei Financial Times und The Guardian]

to Founding Scene: After the rain of money comes the dry season – is this the sad annual record of German startups, which were still breaking investment records in 2021? Investors are more cautious today due to the uncertain market situation, but there was also 2022 triple-digit funding in millions. Our editor Maybrit Martschin wrote for you who got the most money. [Mehr bei Gründerszene+]

And here are the other headlines of the evening:

instacart, a US grocery delivery startup set to go public next year, has reduced its internal valuation to around $10 billion. The new valuation is 20% lower than in October and almost 75% lower than the price quoted last year when investors wanted to buy shares. At that time, the valuation was still $39 billion. [Mehr bei The Information]

pinduoduo and Complete Truck Alliance would have given up listing their shares in Hong Kong. The two Chinese technology companies, whose shares have until now been traded in New York, no longer seem to see the need to hedge against future regulatory disputes between the United States and China. [Mehr bei The Information]

Crypto News: Kraken will cease operations in Japan next month. The move by the San Francisco-based crypto exchange is another sign of consolidation in the struggling industry. This is the second time that Kraken has left the Japanese market. The first time was in 2018. Kraken then tried again in 2020. [Mehr bei CNBC]

The insolvent crypto exchange FTX used $200 million in client funds to invest in two companies, according to the U.S. Securities and Exchange Commission. $100 million donated Dave, a fintech company that went public through a special purpose vehicle two months earlier. At the time of the deal, the companies said they would “work together to grow the digital asset ecosystem.” The second agreement was an investment round for Mysten Labs, a Web3 company. FTX customers, meanwhile, have filed a class action lawsuit to enforce their rights to the company’s dwindling assets. [Mehr bei CNBC und Reuters]

Digital Galaxy agreed on Bitcoin– Helios mining area of Argo Blockchain take over for US$65 million. New York-based Galaxy will also provide Argo with a $35 million loan. Not only will the deal expand Galaxy’s mining operations, but it will also help UK-based Argo avoid impending bankruptcy. [Mehr bei Techcrunch]

Our reading advice on Gründerszene: $250,000+: Five headhunters report on what’s currently being paid at startups and companies in the digital industry – from starters to CEOs. [Mehr bei Gründerszene+]

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A beautiful Thursday!

Your Gründerszene editors

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