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You shouldn’t compare apples to oranges, but similarly, comparing iPhones to Androids is also a fool’s errand.
Now that Apple is phasing out the Lightning connector after 11 years in favor of the more universal USB-C standard (in tuna fish products), the debate has reignited about silos versus open standards. Apple has long drawn the ire of Android users locked out of the iMessage standard, and every now and then a solution comes and goes. More recently, an app called Beeper allowed Android users to send iMessages to iPhone users. To no one’s surprise, Apple quickly shut it down, drawing attention from all corners, most notably the Senate.
Of course, neither Apple nor Android are startups, so what makes this a Startups Weekly headline? Well, I think it serves as a really good reminder that products like the Beeper can burst onto the scene, before disappearing from existence again just as quickly.
Whether you’re building on the Apple ecosystem or ChatGPT, or your company relies heavily on another service altogether, it pays not to completely lock your success into the whims of a company over which you have little or no control.
With this little soapbox speech. . . Let’s see what else happened in the startup world as we reach the halfway point of December.
Rocky oceans in startup ecosystems
Image Credits: Diane Keough (opens in new window) / Getty Images
In an epic twist, Omidyar Network, the philanthropic investment firm founded by eBay’s Pierre Omidyar, is bidding farewell to India after 13 years. Despite recent investment and public pledges, they are pulling the plug, citing a “significant change in context” and the rise of local philanthropy and venture capital. While they boast about the catalytic impact, their abrupt exit after a rough year (think fire sales of backed startups) has left many in the Indian startup scene scratching their heads.
Analysts worry that this is part of a broader trend: Manish reported that Indian startups have raised about $7 billion this year, up from about $25 billion in 2022 and $37 billion in 2021. Woof.
More venture and fundraising news:
Shark fintech soup: Small business fintech darling SumUp is throwing €285m into its survival kit to weather the fintech storm. While it’s planting flags in new markets and adding shiny features to its payments arsenal, the funding landscape looks as attractive as a shark tank. Despite having a sunnier EBITDA outlook, their customer numbers haven’t budged in two years. Fintech is a tough gig, guys.
OpenAI invests in India: In a bold move, OpenAI is courting India’s AI scene by enlisting Rishi Jaitly, the former head of Twitter India, to be their local eyes on the ground. They are reportedly moving towards setting up a team in India, but don’t have an official presence yet – just a freshly minted brand. Jaitly is helping OpenAI navigate India’s complex political landscape.
Here are some rocket fuels: In the latest “slow and steady doesn’t win the race” move, Paris-based startup studio Hexa, fresh off a $22 million fundraising spree, is introducing Hexa Scale. This program targets B2B companies stuck in the doldrums of linear growth, offering them a lifeline back into the sexier world of exponential growth.
The movement of AI
Image Credits: mathisworks / Getty Images
Meet Sarvam AI, the Indian startup that’s just a five-month-old baby, but it’s already growing its financial might with $41 million in funding. Who said startups have to crawl before they walk? Sarvam AI, with its eye on creating end-to-end AI offerings, skips the baby steps and jumps right into the AI playground. They don’t just play with language models. rethinking them with an emphasis 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 wasn’t enough of a reminder that AI continues to be very hot, consider that Mistral AI, a Parisian startup, just said “au revoir” to mediocrity by closing a massive $415 million funding round. The company is busy shaping the future of artificial intelligence with a distinctly European feel. Romain digs into why Silicon Valley might need to watch its back. Bonne lecture!
A lot of AI news has been released by Google in the past week or so. The search giant launched Gemini, which powers many of its AI efforts. AI Studio, designed to easily build apps on Gemini, was released, but reviews quickly appeared. First, it wasn’t the AI Hail Mary that Google needed (and the rest of us wanted), and first impressions of the platform were a bit much. Google also announced AlphaCode 2, which builds on the technology, along with a huge update to its Bard chatbot platform.
Perhaps the biggest news was that Google’s Pixel 8 Pro, powered by its clever AI Gemini model, makes other phones look like they’re still playing Snake. This genius phone has an AI summary in the Recording app and a Smart Reply in Gboard for those who can’t be bothered to send a message. Plus, it even works on the device (ie, without Wi-Fi or a signal, you still have an AI in your hands), so now you can improve with AI in the middle of nowhere.
Moar AI goodness:
X getting spontaneous with AI: Now rolling out to subscribers, Grok promises to add a dose of unpredictability to your everyday digital interactions. So if you’re tired of the same old AI talk and crave something with a little more honesty and sass, Grok is your go-to. It is currently available to all premium subscribers, followed by all English-speaking users, and then Japanese-speaking users.
Say hello to my little friend: Relevance AI is on board with its low-code platform, promising to be the fairy godmother for businesses of all sizes. They know custom AI agents faster than you can say “automation” and with $13.2 million in the bank.
EU flexes its AI muscles: After marathon “final” talks lasting nearly three days, European Union lawmakers have reached a political agreement on a risk-based framework for regulating artificial intelligence.
The calm before the storm;
Image Credits: Cattallina (opens in new window) / Shutterstock (opens in new window)
The numbers suggest that early-stage startups are throwing a party with better valuations and more cash flow, defying the bleak narratives of 2023, write Alex and Anna at TC+. Meanwhile, their older siblings, the scaly and unicorn, are taking swimming lessons as they find themselves in deeper water. Carta’s data suggests that the startup world is not uniformly bleak. it’s just selective, favoring the young and bright. 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 continue to dominate November’s new billion-dollar babies. Stripe, Brex and others took a nosedive in valuations, but don’t despair, there’s hope: New unicorns like Tabby and Enable are emerging. Also, Simply Homes is making waves 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 the country of origin:
Actions are table bets: Josh Claman, CEO of Accelsius, writes a TC+ article that reminds us that while technological advancements are dazzling, it’s the business side—effectively managing the nuts and bolts—that really gives companies an edge.
Fundraising season is coming: Yes, it’s pretty dead right now, but come January, VCs are back from their extended December hiatus and will be ready to distribute cash again. Are you ready?
Are they turning their backs on Texas?: Once hailed as the darling of the tech world, it looks like Austin may be losing some of its luster. Techstars is hitting the pause button on Austin’s capital, signaling a potential shift in the city’s tech allure. Reasons? Well, Austin isn’t as cheap as it once seemed, especially with home prices acting like they’re on a caffeine high.
Top reads on TechCrunch this week
You’ve got the highlights above, but as I look through our most read stories, it turns out I missed a couple. Here are the best of the rest:
RIP, podcasting: It seems the writing is on the soundproof wall: The podcast boom is over, and this week’s news is proof. Spotify laid off 17% of the company — its third round of layoffs this year — and canceled two blockbuster shows, including a Pulitzer Prize winner for audio reporting.
Pedal to the metal: Lucid Chief Financial Officer Sherry House is leaving the company to “pursue other opportunities,” the automaker told investors Monday.
It’s all fun and games until everyone’s fired: Hasbro is laying off 1,100 employees after already laying off 800 in January. While some workers will learn the fate of their jobs on Tuesday, others will be cut over the next year. By 2025, Hasbro told shareholders, the company hopes to save about $350 million to $400 million in costs.
