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You shouldn’t compare apples to oranges, but similarly, comparing iPhones to Android devices is a fool’s errand as well.
Now that Apple has finally phased out the Lightning connector after 11 years in favor of the more universal USB-C standard (via Group Tons of products), the conversation about silos versus open standards has reignited. Apple has long drawn the ire of Android users who are locked out of the iMessage standard, and every now and then a workaround comes and goes. Recently, an app called Beeper enabled Android users to send iMessages to iPhone users. To the surprise of nobody in particular, Apple quickly shut that down, drawing attention from all corners, not least the Senate.
Of course, neither Apple nor Android are startups, so what makes this a headline in Startups Weekly? Well, I think it’s a really good reminder that products like the Beeper can come onto the scene, before they’re written off again just as quickly.
Whether you rely on the Apple ecosystem or on ChatGPT, or whether your company relies heavily on another service entirely, it’s not worth letting your success be entirely tied to the whims of a company you have little to no control over.
With that little speech out of the way. . . Let’s see what else happened in the startup world as we reach mid-December.
Rocky oceans in emerging ecosystems
In an epic plot twist, Omidyar Network, the philanthropic investment firm founded by eBay’s Pierre Omidyar, waves goodbye to India after 13 years. Despite recent investments and public engagement, they have stalled, citing a “significant change in context” and the rise of local philanthropy and venture capital. While they boast of driving impact, their sudden exit after a rough year (such as cheap sales of backed startups) has left many in the Indian startup scene scratching their heads.
Analysts worry this is part of a broader trend: Indian startups have raised about $7 billion this year, down from about $25 billion in 2022 and $37 billion in 2021, Manish reported.
More project and fundraising news:
Shark Soup for Fintech: SumUp, the fintech darling that caters to small businesses, is throwing €285 million into its survival kit to weather the fintech storm. As it plants flags in new markets and adds shiny features to its payment arsenal, the financing landscape looks as attractive as a shark tank. Despite boasting a brighter EBITDA outlook, their client numbers haven’t budged in two years. Fintech is a tough gig, people.
OpenAI invests in India: In a bold move, OpenAI is getting closer to India’s AI scene by enlisting Rishi Jaitley, the former head of Twitter India, to be their local eyes on the ground. They are said to be moving towards setting up a team in India but do not have an official presence yet – just a recent brand. Jaitley helps OpenAI navigate India’s complex political landscape.
Here’s some rocket fuel: In the latest “slow and steady doesn’t win the race” movement, Paris-based studio Hexa, having raised $22 million in donations, introduces Hexa Scale. This program targets B2B companies stuck in the stagnation of linear growth, offering them a lifeline back into the more attractive world of exponential growth.
Artificial intelligence movement
Meet Sarvam AI, the Indian startup that is still a five-month-old baby but is already flexing its financial muscles with a massive $41 million funding. Who said startups need to crawl before they can walk? Sarvam AI, which aims to build end-to-end generative AI offerings, is skipping baby steps and jumping straight into the AI playground. They are not just playing with language models; They are reimagining it 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 doesn’t remind you enough that AI is still very hot, consider that Mistral AI, a Parisian startup, just said “goodbye” to Medium by closing a massive $415 million funding round dollar. The company is busy shaping the future of artificial intelligence with a distinct European touch. Roman delves into why Silicon Valley might need to watch its back. Bonn Lecture!
A lot of Google AI news has been coming out over the past week or so. The search giant has launched Gemini, which supports much of its AI efforts. It released AI Studio, designed to easily build applications on Gemini, but criticism soon surfaced. For one thing, generative AI Hail Marys weren’t what Google needed (and the rest of us wanted), and early impressions of the platform were a bit poor. Google also announced AlphaCode 2, based on the technology, along with a huge update to the Chatbot Bard platform.
Perhaps the biggest news is that Google’s Pixel 8 Pro, powered by the Gemini AI model, makes other phones look like they’re still playing Snake. This genius phone features an AI summary in its Recorder app and a smart reply in Gboard for those who can’t be bothered to resend text messages. Plus, it also works on the device (i.e., without Wi-Fi or signal, you still have the AI at your fingertips), so you can now boost your AI in the middle of nowhere.
Muar Amnesty International Good:
X got rude with AI: Grok is rolling out now to subscribers, and promises to add a touch of unpredictability to your everyday digital interactions. So, if you’re tired of the same old AI-related small talk and crave something a little bolder and braver, Grok is your perfect choice. It is currently being rolled out to all premium subscribers, followed by all English language users, and then Japanese language users.
Say hello to my little friend: AI technology flows through its low-code platform, and promises to be the fairy godmother for businesses of all sizes. They’re churning out custom AI agents faster than we can say “automation,” and with a cool $13.2 million in the bank.
The European Union is flexing its muscles in the field of artificial intelligence: After marathon “final” talks extending over nearly three days, EU lawmakers reached a political agreement on a risk-based framework for regulating artificial intelligence.
The silence before the hurricane?
Figures show early-stage startups are celebrating better valuations and greater cash flow, defying the bleak narrative for 2023, Alex and Anna write on TC+. Meanwhile, their older siblings, the startups and unicorns, take swimming lessons as they find themselves in deeper waters. Carta data suggests that the startup world is not uniformly bleak; He’s just picky, preferring the young and energetic. This raises toasts to the idea of rushing toward an IPO, rather than continuing with private equity. Who knew that age could be so much more than just a number in the startup game?
Fintech companies continue to dominate the new kids, hitting $1 billion in revenue in November. Stripe, Brex and others have taken haircuts in ratings, but don’t despair, there is hope: new unicorns like Tabby and Enable are emerging. Simply Homes is also making waves by tackling affordable housing. Christine and Mary Ann wink at 2024, and expect more from fintech companies, because who doesn’t love a good comeback story?
Also in the land of the beginning:
Operations are table stakes: Josh Claman, CEO of Accelsius, wrote an article for TC+ reminding us that while technological advances are impressive, it’s the operational aspect — managing the nuts and bolts efficiently — that really gives companies an advantage.
Fundraising season is coming: Yes, it’s over for now, but come January, VC firms will return from their extended December vacations and be ready to distribute cash again. are you ready?
Turning their backs on Texas?: Once hailed as a tech darling, it looks like Austin may be losing some of its lustre. Techstars is hitting the pause button on its Austin branch, signaling a potential shift in the city’s tech appeal. the reasons? Well, Austin isn’t as cheap as it once seemed, especially with housing prices as high as they’ve been.
Top reads on TechCrunch this week
I’ve got the highlights above, but when I look at our most-read stories, it turns out I missed some. Here’s the best of the rest:
rip, broadcast: The writing appears to be on the soundproof wall: the podcast boom is over, and this week’s news is proof. Spotify has laid off 17% of the company — its third round of layoffs this year — and canceled two critically acclaimed shows, including a Pulitzer Prize winner for audio reporting.
pedal to metal: Lucid Chief Financial Officer Sherri House will leave the company to “pursue other opportunities,” the automaker told investors on Monday.
It’s all fun and games until everyone gets kicked out: Hasbro is laying off 1,100 employees, after already laying off 800 in January. While some employees will find out the fate of their jobs on Tuesday, others will be laid off next year. Hasbro told shareholders that by 2025, the company hopes to save about $350 million to $400 million in costs.