Monday, February 5, 2024

A smaller, cheaper Rivian is coming

TechCrunch Newsletter
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By Christine Hall

Monday, February 05, 2024

Good afternoon, and welcome back to TechCrunch PM. Today we do some cruising with Rivian's new electric vehicle, give you an update on Paytm and learn how Bumble is protecting users from scam accounts. Let's go! — Christine

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TechCrunch PM Top 3

A new Rivian coming soon: The electric vehicle maker says a smaller, cheaper electric SUV dubbed R2 will be unveiled on March 7. Sean O'Kane writes that it's an opportunity for Rivian to get into the land of the less expensive EV. With consumer appeal waning for electric vehicles, it's a bold strategy; however, we're here to see how it goes.

Layoffs at Snap: The social media company plans to lay off another 10% of its workforce, or around 500 people. The new job cuts follow a smaller one from November and again cites the company's plan to reorganize to support healthier growth.

Paytm is having a week: It started with some potential fines, then Paytm was told to halt business. Next, shares declined. Today we learned that the company was in talks with Jio Financial Services to sell its wallet business. Jio has since squashed that rumor. We wonder what's next.

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More top reads

Security news: Remote desktop software provider AnyDesk confirmed late last week that hackers gained access to the company's production systems, putting the company in lockdown for almost a week. The company says there is "no evidence that any end-user systems have been affected."

Over at Bumble, the dating app said it was putting a new AI-powered feature in place designed to identify and block scam accounts and fake profiles. This is a top concern among users — as it should be — and will hopefully keep deepfakes to a minimum.

Wonder Ventures raises for pre-seed: Dustin Rosen's venture capital firm is eager to be the first check into Los Angeles–based startups and now has two new funds by which to support budding ideas.

B2B vs. B2C is not about who's buying, but how you're selling: These two terms aren't just an audience, but a distinct business model. That's one lesson, of many, Haje Jan Kamps discusses in his latest piece for TechCrunch+.

Everbridge is going private: Thoma Bravo, the private equity giant, is taking the critical event management software company private in a $1.5 billion deal. Paul Sawers writes that "Thoma Bravo clearly sees Everbridge's suite of SaaS tools as being integral to companies looking to manage these risks."

Weaveworks closes doors: The cloud native development startup announced it was shutting down, the latest victim of a rough market, its CEO said.

Sunny days are here for Jua: The Swiss startup is looking at how AI might be used in the physical world and has picked up $16 million to initially model and predict weather and climate patterns.

Arrival may be going nowhere: Following a series of unfortunate events, the electric vehicle startup looks to be selling off some assets and intellectual property from its U.K. division. This follows the company being removed from Nasdaq last week.

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On the pods

In today's Equity, Alex Wilhelm took a look back at the weekend and the week ahead, discussing the stock market, crypto price movements and some good news from startup land. Listen here.

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Throw a rock, hit an AI startup

TechCrunch Newsletter
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By Alex Wilhelm

Monday, February 05, 2024

Good morning, and welcome to TechCrunch AM for February 5, 2024. Today we have several venture capital interviews, notes on AI in China, more testing of the Apple Vision Pro, and the price of Russian sanctions on tech companies' exit values. Let's get caught up from the weekend!
Alex

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TechCrunch Top 3

  1. Kleiner is drowning in AI pitches: In a fascinating chat with Kleiner Perkins' Mamoon Hamid and Ilya Fushman, TechCrunch learned that more than four in five (80%) of the pitches that the firm sees today include AI. Hamid likened the trend to how important the Internet was for tech companies in the late ’90s: "If you were building a company in 1996 and you didn't mention the internet, you'd be out of your mind."
  2. China's regulatory climate vs. AI: While U.S.-based VCs are seeing a wave of AI-related pitches, data indicates similar startups in China aren't seeing as much fundraising traction. AI startups in the country raised 70% less in 2023 than a year previously, per CBInsights data. TechCrunch's Rita Liao cites cross-border tensions and higher regulatory burdens in the country as some of the hurdles facing startups.
  3. How low can Paytm go? Embattled Indian fintech giant Paytm continued to lose value today after the Reserve Bank of India's regulatory action against Paytm's Payments Bank. The impact to operations at the company appears more severe than originally anticipated, and the former startup darling's stock is bleeding value. It's now down to a fraction of its worth when it IPO'd.
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Don't miss these

What to make of the Apple Vision Pro? Now that Apple's new VR headset is finally in the market, exactly what is it good for? TechCrunch's Brian Heater writes that in "the headset's current iteration, games are not the primary driver. [Instead, the] company instead presented a future wherein the Vision Pro is, in essence, your next Mac." That makes sense, given that Apple is hardly a gaming juggernaut apart from mobile.

AI is accelerating product development: But not in the way you are thinking. Instead, AI technology itself is advancing so quickly that startups are now iterating faster than ever to stay ahead. After noting that SaaS companies could launch some features and wait a bit to release more, Viviana Faga, partner at venture firm Felicis, says that "AI companies launch new features on a daily basis, and those are always the best-performing features."

Do venture and fast fashion mix? Rebeccal Szkutak asks if VCs and fast fashion make for a good pair, noting the ample labor and copyright issues rampant in the sector. She also highlights environmental concerns and the rising trend of ethical consumption. While the business model does make a lot of money in the short-term, she questions whether returns should be the only barometer of a successful investment.

Another crack at food waste: Tackling food waste is a perennial problem. I've been hearing about the issue and potential solutions my entire life. Here's one more: ProducePay wants to give fresh produce growers and buyers greater transparency — and flexibility — in the grocery supply chain. The company will have to contend with some competition in its thrust to reduce waste, though, as Ida, Choco, and Divert are all working towards similar ends.

Meta's fake video policy rapped by Oversight Board: An external body that reviews Meta's moderation said the company's decision regarding an edited video of President Joe Biden was consistent with the platform's rules, but also mentioned that the relevant policy was "incoherent." Questions abound as the U.S. heads into a massive election cycle, which will be the first time the general public has wide and cheap access to AI tools that allow for all sorts of video fakery. These policy questions, either at the company or state level, are far from idle.

Yandex leaves Russia – at a price: Yandex N.V., the Dutch parent company of the Russian internet company, is selling the last of its stake in its Russia-based business at a massive discount. The $5.2 billion price tag is partially predicated on Russian rules that mandate discounts when selling assets if the seller is from an "unfriendly" country. Since Holland is in the EU, well, it's not on great terms with Russia at the moment. (Note: This rule obviates any EU or North American interest in Russian startups.)

What is this, 2021? French startup Naboo just raised $8 million, and is currently seeing GMV of around $1.5 million per month. It's a relatively simple concept: The company offers a "marketplace of nice houses that you can browse and book in just a few clicks for your next corporate retreat with your team." That's great and very remote-work friendly, but creating a way for companies to spend more money feels very 2021. But the fact that Naboo is doing so well implies that there's more money out there than we might have thought. Bullish!

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Before you go

To ETF or not to ETF: We asked a bunch of TechCrunch+ subscribers whether or not they were going to pile into spot bitcoin ETFs. The responses surprised us!

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