Monday, February 12, 2024

What it takes to raise a seed round today

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By Alex Wilhelm

Monday, February 12, 2024

Good morning, and welcome to TechCrunch AM for February 12, 2024. Today, we're taking a look at a massive nine-figure venture capital round, a notable startup deal, a VC firm that is bringing its founders to Silicon Valley for AI meetings, and the latest chat bot hallucinations.

Alex

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TechCrunch Top 3

  1. Nine-figures for bug bounties: The business of helping companies find bugs and other security issues with their software is big. The market's so large, in fact, that Bugcrowd just raised $102 million to help root out bugs at its customers, which include the likes of OpenAI. General Catalyst led the investment that will see Bugcrowd able to go on the offensive, including making acquisitions if it decides to.
  2. Notion buys Skiff: Well-funded documents-and-notes startup Notion has purchased Skiff, which offers end-to-end encrypted file storage, docs, calendar events, and email. Notion has expanded its own product remit and recently launched a calendar feature last month based off a separate acquisition, so the startup seems to be taking advantage of a somewhat depressed price market to make acquisitions.
  3. VCs shift stance on guns: In this week's Deal Dive, Rebecca Szkutak takes a look at biometric "smart" gun startup Biofire's recent fundraise. She writes that many venture capitalists were historically unable to invest in firearms startups due to vice clauses and the like, but institutional investors are now increasingly open to investing in companies like Biofire.
TechCrunch Top 3 image

Image Credits: Getty Images

Don't miss these

Ilara Health raises $4M: Kenya-based health tech startup Ilara Health helps private clinics access key operational items like diagnostic devices and pharmaceuticals, and it just raised $4.2 million to grow in its home market. Annie Njanja reports that the pre-Series A round will also be used to broaden access to healthcare via "a B2B health and occupational service that will enable uninsured workers access care at its network of partner clinics for a fixed monthly fee."

AI field trip: Sequoia's break-out venture fund Peak XV Partners focused on the Indian market is bringing a host of its founders to Silicon Valley this week for AI meetings. This tells us two things: venture firms are not done trying to add value even when the market has returned much of their pricing power over startup rounds; and Silicon Valley really is the AI central hub today.

Chatbots are replacing your drunk uncle: Chatbots from Microsoft and Google were dinged for coming up with creative notes for users regarding the recent Super Bowl game. The chatbots each reported scores before they game had already happened. What's even funnier is that they didn't agree on who had won would win. Go Chiefs.

The state of seed funding: Tim De Chant dug into the current state of the seed capital market, discussing the matter with Talia Goldberg, a partner at Bessemer Venture Partners; Pae Wu, a general partner at SOSV; and Maren Bannon, a partner at January Ventures. The biggest takeaway? "The bar is higher now. Investors are starting to ask diligence questions that in 2021 would have been Series A kind of questions," Wu told TechCrunch+.

AI and elections: More than five dozen elections will occur this year, which puts a massive focus on new AI technology around the world. I suppose that no matter what happens, we'll learn a lot in the coming months. Let's hope that most of it is useful so that we can do better the next time around.

Don't miss these image

Image Credits: Ilara Health

Before you go

Finally, a perfectly safe AI model: Meet Goody-2, an AI model that is supposedly so squeaky clean that it won't answer anything at all. That will solve the hallucination, training data attribution, and other issues around dangerous answers that many existing AI models suffer from. Now we just need an AI model called Shoes that we can meld with Goody-2 for a great joke model.

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Image Credits: Brain

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Friday, February 9, 2024

Fisker Ocean’s early road had twists and turns

TechCrunch Newsletter
TechCrunch PM Logo

By Christine Hall

Friday, February 09, 2024

Good afternoon, and welcome to TechCrunch PM. We made it to Friday, and your reward is a lovely chronicling of what happens when cars don't run right. Also, find out which company plunked down $7 million on a Super Bowl ad, who's making layoffs, why X is getting into sports betting and who let Haje pick apart their pitch deck. Have a great weekend!

Christine

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Image Credits: Bryce Durbin/TechCrunch

TechCrunch PM Top 3

Fisker's growing pains: Some early Fisker Ocean owners flagged a number of issues, from sudden loss of power to the hood opening while driving. We show you how some of these came about and how the company continues to work on issues that arise with its electric SUV.

AR's enterprise future: Adoption of augmented reality and virtual reality hasn't quite caught on in the business world — ask Mark Zuckerberg how he knows. That's not stopping Apple from working to change perceptions.

Football's biggest day: Among the biggest brands in the world will be one hoping to grab some of that recognition. Here's why B2B software Papaya Global bought a 30-second ad in Sunday's big game.

TechCrunch PM Top 3 image

Image Credits: Apple

More top reads

More layoffs: Grammarly is the latest tech company to restructure its business, resulting in layoffs. The AI writing company is cutting 230 people to focus on an AI-enabled workforce.

Sleep apnea detection on your wrist: Samsung's Galaxy Watch was approved by the FDA to detect sleep apnea. This is going to revolutionize someone's sleep and is only the beginning of what devices will eventually tell us about our bodies.

What's next for STIRR: Now that the free, ad-supported streaming TV service STIRR has a new parent company, expect to see some expansion, a lot more things to watch and better app functionalities.

This year will be a turning point for DEI: There's a diversity, equity and inclusion backlash going on in the Big Tech world, and we have pulled together what you need to know about the legal and corporate challenges going on.

Product experts in your pocket: A new $5 million fund started by 20VC will invest in early-stage startups and provide insights into product growth from some of the top company experts.

Pitch Deck Teardown: Over on TechCrunch+, Haje takes a look at Xyte's 27-slide deck. Find out what he liked and didn't like.

Get social: Meta wants a happier environment on its platforms and decided that Instagram and Threads will no longer proactively recommend political content. Next, X and BetMGM have a new partnership to introduce a sports betting service on X. And third-party developers are left in a lurch after some social networks won't play nice with their APIs.

More top reads image

Image Credits: Grammarly

On the pods

Today on Equity, Mary Ann, Alex and Kirsten discuss the headlines of the week, touching on such gems as Adam Neumann wanting to buy WeWork from bankruptcy, what's going on with venture capital in Latin America, earnings, ad spend and the state of the economy. There's plenty more. Listen here.

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Image Credits: Bryce Durbin

Join Waymo, Signal, and more at StrictlyVC Los Angeles

Join StrictlyVC’s cocktail party in Los Angeles on February 29 to hear from leaders like Meredith Whittaker (president, Signal) and Tekedra Mawakana (co-CEO, Waymo), and connect with top VCs and entrepreneurs. Tickets are $150 — register today.

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