Monday, February 5, 2024

Throw a rock, hit an AI startup

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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.
TechCrunch Top 3 image

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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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Friday, February 2, 2024

Cake files for bankruptcy

TechCrunch Newsletter
TechCrunch PM Logo

By Christine Hall

Friday, February 02, 2024

Good afternoon, and welcome to TechCrunch PM. As you head into the weekend, slice into our story about e-motorcycle company Cake filing for bankruptcy, scan the list of robotics companies that are hiring, learn what will happen to Spotify as Joe Rogan goes rogue and see which investor is all in on blockchain. Have a great weekend! — Christine

 image

Image Credits: Cake

Don't Miss StrictlyVC In Los Angeles On Feb. 29

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TechCrunch PM Top 3

Cake's latest struggle demonstrates how fragile fundraising still is: Electric motorcycle company Cake confirmed that it is filing for bankruptcy. The move came as the company worked to secure additional funding. It seems when one investor pulled out, Cake had to find another solution.

Some good tech news for a change: The tech layoffs we've seen over the past few years are no fun; however, we have some good news for you if you work in robotics, or want to. A list of 30 robotics companies who are hiring.

It's here! Apple Vision Pro Day: It's February 2, and in addition to learning if it will be an early spring, it’s Apple Vision Pro Day. As thousands of preorders roll in, we have your look at some of the independent apps and games that will arrive with the device. Oh, and check out the first apps you should download.

TechCrunch PM Top 3 image

Image Credits: Darrell Etherington / TechCrunch, with stock photos from Getty under license

More top reads

Joe Rogan is no longer Spotify-exclusive: Spotify signed another multi-year agreement with the controversial podcaster; however, new for this time is that Rogan's show can also be launched on other audio platforms.

Cloud computing comes back: Learn what breathed new life into the cloud computing space this quarter to cause the sector's revenue to have some big growth.

New venture capital alert: Niremia Collective is the latest women-led fund to close on a debut fund. The firm, led by Naoko Okumoto and Nichol Bradford, deploys capital into well-being technology.

Pitch Deck Teardown: Head over to TechCrunch+ to see how PhageLab's $11 million Series A deck stands up to Haje Jan Kamps' critical eye for pitch slides.

European Union's AI Act is closer to adoption: Member state representatives voted to confirm the final text of the draft law, which is a risk-based plan for regulating applications of artificial intelligence. Read about the act's journey to get there.

A focus on blockchain: In case you missed Jacquelyn Melinek's Chain Reaction episode from this week, she writes about her discussion with Andreessen Horowitz partner Chris Dixon and his view on the "productive side of blockchain." (TC+)

SpaceX slays a Dragon: Thanks to a new program inviting research on crewed Dragon missions, Elon Musk's space mission company is poised to become the co-owner of valuable data, biological samples and possibly even patents and intellectual property related to human spaceflight.

Blackbaud ordered to end reckless security practices: The education technology company is still cleaning up after a 2020 breach that resulted from what the U.S. federal government deemed was "lax" security protocols.

More top reads image

Image Credits: IR_Stone / Getty Images

On the pods

In today's Equity, Kirsten Korosec, Karyne Levy and Alex Wilhelm ran down some of this week's headlines. Among them, a recap of what happened when Big Tech CEOs met with Congress, deals of the week, more fintech layoffs and automating the work of investors. Listen here.

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