You shouldn’t compare apples to oranges, but similarly, comparing iPhones to Androids is a fool’s errand as well.
Now that Apple is finally phasing out the Lightning connector after 11 years in favor of the more universal standard USB-C (across a ton of products), the conversation has reignited about silos versus open standards. Apple has long attracted the ire of Android users who are locked out of the iMessage standard, and every now and again a workaround comes and goes. Most recently, an app called Beeper enabled Android users to send iMessages to iPhone users. To the surprise of exactly nobody, Apple quickly locked that down, drawing side-eye from all angles, not least the Senate.
Of course, neither Apple nor Android are startups, so what is this doing as a headline in Startups Weekly? Well, I think it serves as a really good reminder that products like Beeper can explode onto the scene, before being scrubbed from existence again just as fast.
Whether you are building on Apple’s ecosystem or on ChatGPT, or whether your company relies heavily on another service altogether, it’s worth not fully locking your success to the whims of a company you have little or no control over.
With that little soapbox speech out of the way . . . let’s see what else happened in the world of startups as we hit the halfway mark of December.
In an epic plot twist, Omidyar Network, the philanthropic investment firm founded by eBay’s Pierre Omidyar, is waving goodbye to India after 13 years. Despite recent investments and public engagements, they’re pulling the plug, citing a “significant change in context” and the rise of local philanthropy and venture capital. While they boast about catalyzing impact, their abrupt exit following a rough year (think fire sales of backed startups) has left many in the Indian startup scene scratching their heads.
Analysts are worrying this is part of a broader trend: Manish reported that Indian startups have raised about $7 billion this year, down from about $25 billion in 2022 and $37 billion in 2021. Woof.
More venture and fundraising news:
Shark fintech soup: SumUp, the fintech darling catering to small businesses, is throwing €285 million into its survival kit to brave the fintech tempest. While it’s planting flags in new markets and adding shiny features to its payment arsenal, the funding landscape looks as inviting as a shark tank. Despite boasting a sunnier EBITDA outlook, their customer tally hasn’t budged in two years. Fintech’s a tough gig, folks.
OpenAI invests in India: In a bold move, OpenAI is cozying up to India’s AI scene by enlisting Rishi Jaitly, Twitter India’s ex-chief, to be their local eyes on the ground. They’re reportedly moving toward a team setup in India but don’t have an official presence yet — just a freshly minted trademark. Jaitly is helping OpenAI navigate India’s complex policy landscape.
Here’s some rocket fuel: In the latest “slow and steady doesn’t win the race” move, Paris-based startup studio Hexa, fresh from a $22 million fundraising spree, introduces Hexa Scale. This program targets B2B companies stuck in the doldrums of linear growth, offering them a lifeline back to the sexier world of exponential growth.
The motion of the AI
Image Credits: mathisworks / Getty Images
Meet Sarvam AI, the Indian startup that’s just a baby at five months old but is already flexing its financial muscles with a whopping $41 million in funding. Who said startups need to crawl before they walk? Sarvam AI, with its eyes on building full-stack generative AI offerings, is skipping the baby steps and leaping straight into the AI playground. They’re not just playing with language models; they’re reimagining them with a focus on Indian languages and voice interfaces. It’s like watching a superhero origin story, but for AI startups.
If a $41 million round to Sarvam didn’t sufficiently remind you that AI continues to be smolderingly hot, consider Mistral AI, a Parisian startup, just said “au revoir” to mediocrity by closing a whopping $415 million funding round. The company is busy shaping the future of AI with a distinctly European flair. Romain digs into why Silicon Valley might need to watch its back. Bonne lecture!
Perhaps the biggest news was that Google’s Pixel 8 Pro, powered by the brainiac AI model Gemini, is making other phones look like they’re still playing Snake. This genius phone features an AI summarizer in its Recorder app and a Smart Reply in Gboard for those who can’t be bothered to text back. Plus, it even works on-device (i.e., without Wi-Fi or a signal, you still have an AI at your fingertips), so now you can be AI-enhanced in the middle of nowhere.
Say hello to my little friend: Relevance AI is swooping in with its low-code platform, promising to be the fairy godmother for businesses of all sizes. They’re dishing out custom AI agents faster than you can say “automation,” and with a cool $13.2 million in the bank.
Numbers indicate that early-stage startups are throwing a party with better valuations and more cash flow, defying the gloomy 2023 narratives, Alex and Anna write on TC+. Meanwhile, their older siblings, the scale-ups and unicorns, are taking swimming lessons as they find themselves in deeper waters. Carta’s data suggests the startup world isn’t uniformly bleak; it’s just picky, favoring the young and sprightly. This raises a toast to the idea of sprinting toward an IPO, rather than marinating in private equity. Who knew age could be more than just a number in the startup game?
Fintechs still dominated November’s new billion-dollar babies. Stripe, Brex, and others got haircuts in valuations, but don’t despair, there’s hope: New unicorns like Tabby and Enable are emerging. Also, Simply Homes is making waves by tackling affordable housing. Christine and Mary Ann wink at 2024, predicting more fintech unicorns, because who doesn’t love a good comeback story?
Also in startup land:
Operations are table stakes: Josh Claman, CEO of Accelsius, writes a TC+ piece reminding us that while tech advancements are dazzling, it’s the operational side — efficiently managing the nuts and bolts — that truly gives companies an edge.
Fundraising season is coming: Yeah, it’s pretty dead right now, but come January, the VCs are coming back from their extended December breaks and will be ready to dispense cash again. Are you ready?
Turning their backs on Texas?: Once hailed as the tech world’s darling, it seems Austin might be losing a bit of its sparkle. Techstars is hitting the pause button on its Austin chapter, signaling a potential shift in the city’s tech allure. Reasons? Well, Austin’s not as cheap as it once seemed, especially with housing prices acting like they’re on a caffeine high.
Top reads on TechCrunch this week
You’ve got the highlights above, but as I’m looking at our most read stories, it turns out I missed a couple. Here’s the best of the rest:
RIP, podcasting: It seems like the writing is on the soundproofed wall: The podcast boom is over, and this week’s news is evidence. Spotify laid off 17% of the company — its third round of layoffs this year — and canceled two highly acclaimed shows, including a winner of the Pulitzer Prize for audio reporting.
Pedal to the metal: Lucid’s chief financial officer Sherry House is leaving the company to “pursue other opportunities,” the automaker told investors on Monday.
It’s all fun and games until everyone gets fired: Hasbro is laying off 1,100 employees, after it already laid off 800 employees in January. While some employees will find out about the fate of their jobs on Tuesday, others will be cut in the coming year. By 2025, Hasbro told shareholders, the company hopes to save about $350 million to $400 million in costs.
TORONTO – Canada’s main stock index was down more than 200 points in late-morning trading, weighed down by losses in the technology, base metal and energy sectors, while U.S. stock markets also fell.
The S&P/TSX composite index was down 239.24 points at 22,749.04.
In New York, the Dow Jones industrial average was down 312.36 points at 40,443.39. The S&P 500 index was down 80.94 points at 5,422.47, while the Nasdaq composite was down 380.17 points at 16,747.49.
The Canadian dollar traded for 73.80 cents US compared with 74.00 cents US on Thursday.
The October crude oil contract was down US$1.07 at US$68.08 per barrel and the October natural gas contract was up less than a penny at US$2.26 per mmBTU.
The December gold contract was down US$2.10 at US$2,541.00 an ounce and the December copper contract was down four cents at US$4.10 a pound.
This report by The Canadian Press was first published Sept. 6, 2024.
TORONTO – Canada’s main stock index was up more than 150 points in late-morning trading, helped by strength in technology, financial and energy stocks, while U.S. stock markets also pushed higher.
The S&P/TSX composite index was up 171.41 points at 23,298.39.
In New York, the Dow Jones industrial average was up 278.37 points at 41,369.79. The S&P 500 index was up 38.17 points at 5,630.35, while the Nasdaq composite was up 177.15 points at 17,733.18.
The Canadian dollar traded for 74.19 cents US compared with 74.23 cents US on Wednesday.
The October crude oil contract was up US$1.75 at US$76.27 per barrel and the October natural gas contract was up less than a penny at US$2.10 per mmBTU.
The December gold contract was up US$18.70 at US$2,556.50 an ounce and the December copper contract was down less than a penny at US$4.22 a pound.
This report by The Canadian Press was first published Aug. 29, 2024.
The crypto market has recently experienced a significant downturn, mirroring broader risk asset sell-offs. Over the past week, Bitcoin’s price dropped by 24%, reaching $53,000, while Ethereum plummeted nearly a third to $2,340. Major altcoins also suffered, with Cardano down 27.7%, Solana 36.2%, Dogecoin 34.6%, XRP 23.1%, Shiba Inu 30.1%, and BNB 25.7%.
The severe downturn in the crypto market appears to be part of a broader flight to safety, triggered by disappointing economic data. A worse-than-expected unemployment report on Friday marked the beginning of a technical recession, as defined by the Sahm Rule. This rule identifies a recession when the three-month average unemployment rate rises by at least half a percentage point from its lowest point in the past year.
Friday’s figures met this threshold, signaling an abrupt economic downshift. Consequently, investors sought safer assets, leading to declines in major stock indices: the S&P 500 dropped 2%, the Nasdaq 2.5%, and the Dow 1.5%. This trend continued into Monday with further sell-offs overseas.
The crypto market’s rapid decline raises questions about its role as either a speculative asset or a hedge against inflation and recession. Despite hopes that crypto could act as a risk hedge, the recent crash suggests it remains a speculative investment.
Since the downturn, the crypto market has seen its largest three-day sell-off in nearly a year, losing over $500 billion in market value. According to CoinGlass data, this bloodbath wiped out more than $1 billion in leveraged positions within the last 24 hours, including $365 million in Bitcoin and $348 million in Ether.
Khushboo Khullar of Lightning Ventures, speaking to Bloomberg, argued that the crypto sell-off is part of a broader liquidity panic as traders rush to cover margin calls. Khullar views this as a temporary sell-off, presenting a potential buying opportunity.
Josh Gilbert, an eToro market analyst, supports Khullar’s perspective, suggesting that the expected Federal Reserve rate cuts could benefit crypto assets. “Crypto assets have sold off, but many investors will see an opportunity. We see Federal Reserve rate cuts, which are now likely to come sharper than expected, as hugely positive for crypto assets,” Gilbert told Coindesk.
Despite the recent volatility, crypto continues to make strides toward mainstream acceptance. Notably, Morgan Stanley will allow its advisors to offer Bitcoin ETFs starting Wednesday. This follows more than half a year after the introduction of the first Bitcoin ETF. The investment bank will enable over 15,000 of its financial advisors to sell BlackRock’s IBIT and Fidelity’s FBTC. This move is seen as a significant step toward the “mainstreamization” of crypto, given the lengthy regulatory and company processes in major investment banks.
The recent crypto market downturn highlights its volatility and the broader economic concerns affecting all risk assets. While some analysts see the current situation as a temporary sell-off and a buying opportunity, others caution against the speculative nature of crypto. As the market evolves, its role as a mainstream alternative asset continues to grow, marked by increasing institutional acceptance and new investment opportunities.
