TechCrunch Newsletters - Throw a rock, hit an AI startup

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

StrictlyVC Comes To LA This February

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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.”
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.
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.

Image Credits: Slava Blazer / TechCrunch

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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!

Image Credits: Cory Green/Yahoo

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!