Breaking up is hard to do

January 20, 2021

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The Big Tech giants are getting bigger and bigger. Their success has brought about conveniences we cannot imagine, even just two decades ago. Our knowledge of the world and the tools we use to connect and go about our daily lives today are all mediated by the Internet. Facebook has 2.4B monthly active users. Google is used for 92% of the world’s searches. Amazon accounts for nearly 40% of all eCommerce spending in the US. The tools that these companies provide have become, in many cases, irreplaceable and deeply embedded into our daily lives. Moreover, we cannot deny that we have willingly signed away our rights to privacy in order to access their services for the sake of convenience.

At the same time, it is without question that we are wary of what Big Tech will and has become. The immediate actions by Big Tech to shut down President Donald Trump’s social media accounts as well as the removal of the communications app Parler from AWS, the Apple Store, and Google Play as a result of its connection to the Capitol riots are profound. While Big Tech's actions with respect to Trump and Parler were generally well-received by the public, we cannot ignore the daunting fact that Big Tech has the unchecked ability to cut or choose not to cut any person or business from their platforms.

It remains to be seen what the Biden administration will do to break up Big Tech. In 2020, we have already seen regulators take some form of action to attempt to break up Big Tech in the US as well as in the UK and EU. But the gap in the law, as well as government policies to govern the responsibilities of Big Tech, begets many challenges, including that Big Tech's deep pockets will prolong the legal battle.

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Since last week, PrivCo has added:
863 Companies | 308 Funding Activities | 208 M&A Deals

Funding & Deal Highlights:

K Health raises $132MM co-led by GGV Capital and Valor Equity Partners
Health Care Software & Internet Services • Round E • New York, NY

Zapier raises funding from Sequoia Capital
API Software & Internet Services • Equity • Mountain View, CA

X1 Card raises $12MM led by Spark Capital
Consumer Finance • Equity • San Francisco, CA

Webflow, Inc. raises $140MM co-led by Accel Partners and Silversmith Capital Partners
Technology Services • Round B • Mountain View, CA

Outer raises $10.5MM led by Sequoia Capital China
Home Furnishings • Round A • Santa Monica, CA

Picky raises $1.3MM led by Northern Light Venture
Personal Care Software & Internet Services • Seed • Menlo Park, CA

Blend Lab raises $300MM co-led by Coatue Management and Tiger Global Management
Banking Software & Internet Services • Round G • San Francisco, CA

Nayya Health raises $11MM led by Felicis Ventures
Software & Internet Services • Round A • New York, NY

Maryland Aerospace acquires Oakman Aerospace
Commercial & Industrial Engineering • Acquisition • Littleton, CO

NovaQuest Capital Management acquires CoreRx
Pharmaceuticals • Acquisition • Tampa, FL

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Breaking up is hard to do

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