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I’ve been maintaining a tally of the European startup ecosystem since effectively earlier than I moved to the U.S., and today’s report from Creandum about the state of venture investing in Europe gave me pause. This, together with PitchBook’s report of what happened across the pond final 12 months, provides as much as a fancy image.
So far as I can see — and as I mentioned in my column this week — the ecosystem in Europe continues to be fairly fragmented and immature, and funding throughout the pond took a 16% dip in 2022 in comparison with 2021. That isn’t distinctive to Europe, in fact; 2022 was arduous throughout the board, and in comparison with the years earlier than, there have been only a few liquidity occasions throughout the startup world:
Information from PitchBook exhibits that exit values in 2022 have been dismal. Picture Credit: PitchBook
Throughout, 2022 was a dismal 12 months: We haven’t seen this little M&A and IPO exercise since 2016. The full worth of exits in 2022 was $71 billion. The 12 months earlier than, it was greater than ten instances that.
Unhealthy years occur, however I’m going to maintain a really shut eye on how shortly the VC markets bounce again. My suspicion is that the U.S. enterprise trade is extra resilient within the face of a sluggish 12 months or two and that LPs are much less simply spooked. In different phrases, it’s going to be telling to see who raises new funds, the place, and with what funding theses over the subsequent three to 5 years.
Well being tech is sticking its tongue out, saying aaaaaaaaaah
Picture Credit: adventtr (opens in a new window) / Getty Pictures
Spotify co-creator Daniel Ek’s new firm raised a $65 million spherical of funding for his preventative healthcare startup Neko Well being — all of the extra spectacular provided that that is reportedly the primary exterior spherical of financing for the Stockholm-based firm.
Lightspeed Ventures made its first funding in Africa, backing Berry Well being, which goals to convey judgment-free healthcare to a continent the place stigma cuts deep and is affecting many.
Information of the contemporary rounds comes on the heels of a wholesome quantity of exercise in well being tech — Public Ventures launched a $100 million impression fund specializing in nascent life science and clear tech startups, notably in Canada.
Get away the X-ray imaginative and prescient: Ingrid studies that Augmedics snaps up $82.5 million to enhance the end result of spinal surgical procedure utilizing AR and AI.
He loosened his silk rainbow bow tie. Issues have been about to get spicy . . .: I wrote about how intercourse toy firm Lovense is leaning into the AI craze, utilizing ChatGPT to whisper candy, customizable fantasies into your ear holes.
A run to your cash: Ingrid wrote about Munich-based EGYM, which raised $225 million from Jared Kushner’s Affinity Companions to make the health club smarter and fewer sucky.
It’s purses at daybreak for social media
Picture Credit: Bryce Durbin / TechCrunch
If you happen to’ve stumbled throughout the TechCrunch homepage previously week, you then’ve seen our wall of protection on the utter drama-fest that’s the social media panorama in the intervening time. Funding big Constancy already adjusted down its Reddit valuation a month in the past, however Manish studies that it additional deepened its valuation cuts for Reddit this week, after the Reddit protest plunges person engagement.
If you happen to look past the Reddit dumpster fireplace for a fraction of a second, the remainder of social media is aflame as effectively. Twitter rivals soar after Musk makes one other boneheaded transfer, and Paul argues that its rivals have to get their act collectively with the intention to change into a real competitor.
Apropos rivals, Meta’s Twitter competitor Threads went stay and shortly handed 2 million downloads in simply two hours, and greater than 30 million in a day. I do know, I didn’t actually see it coming both, however TechCrunch compiled an all-your-questions-answered article about Threads. My first impression? The app isn’t nice, however Instagram’s community impact is formidable, and Twitter has been screwing up so monumentally since Musk’s acquisition that it could simply be all it takes to place the chook app in its grave.
That’s a go from us, mon frère: Natasha L factors out that Meta’s Threads app is a privateness nightmare and that it received’t launch within the EU but. This follows a report {that a} bunch of tech giants are having to determine how to reply to the EU’s rebooted antitrust regime.
Cash didn’t convey API-ness: Ivan ponders what’s taking place over at Reddit because the social media web site braces for all times after API adjustments.
Lawsuits from a parallel universe: Devin studies {that a} Louisiana choose silenced White Home social media talks in a lawsuit that appears fairly wild. He writes, “It’s nearly pitiable how desperately the lawsuit peddles its conspiracy theories, making out routine emails to be collusion and [the] removing of rule-violating content material as censorship.” So . . . that’s enjoyable.
Take down these tweets: Whereas we’re on the subject of untamed court docket circumstances, Twitter was attempting to wriggle out of a case in India, however the choose didn’t mince phrases: “Punishment for non-compliance is 7 years imprisonment and limitless positive.” Evidently, Twitter’s plea in opposition to India’s authorities was dismissed, though the core of the case continues to be curious: Twitter has been requested to take down a whole lot of accounts and tweets, typically for denouncing the Indian authorities.
Skynet awakens
Picture Credit: Getty Pictures / sompong_tom
AI is all over the place, however by no means has it been so confusingly head scratching as within the case of Humane’s first product: The Ai Pin. The secretive startup has been round since 2018 and has reportedly raised greater than $230 million since then — and I can’t for the lifetime of me determine why that is higher than simply saying, “Hey, [voice assistant],” into your nearest good system. Somebody, please, clarify it to me.
Did I point out that AI is scorching? Previously couple of weeks, I had two founders attain out to me for fundraising recommendation, solely to get again to me a pair weeks later with an “lol, I assume we don’t need assistance; we simply acquired a number of time period sheets.” The suitable groups are elevating formidable quantities of funds because the FOMO units in amongst traders. One instance is Typeface, which is constructing generative AI for manufacturers and simply introduced a $100 million elevate at a $1 billion valuation.
On prime of that, one of many wilder tales we’ve seen to this point was a founder promoting its four-month-old “OpenAI for China” play for $234 million. Which means the startup gained about $2 million of valuation per day from beginning to acquisition. Yowzers.
By the way, if somebody desires to share some AI-related decks for my Pitch Deck Teardown series, I wouldn’t be mad.
Sure, that is undoubtedly Bobby’s mom. He can’t come to highschool immediately: Ingrid studies that Voice.ai raises $6 million as its real-time voice changer approaches 500,000 customers.
Hey, robotic, you seize the crayons, I’ll make the espresso: Kyle studies that Runway raised $141 million because it builds generative AI instruments for content material creators.
We will’t measure this, however it’s undoubtedly 10x higher: Over on TC+, Software program.com co-founders Geoff Stevens and Brett Stevens argue that the productiveness boosts builders see by utilizing AI are a little bit of smoke and mirrors — not least as a result of no one appears to agree on tips on how to measure productiveness amongst software program builders within the first place.
High reads on TechCrunch this week
Unhealthy horndog, no porn for you: Amanda studies that Pornhub blocks entry in Mississippi, Virginia and Utah amid altering legal guidelines associated to necessary age verification for grownup websites. As an alternative of attempting to do age verification by checking your government-issued ID as requested by regulation, Pornhub took a unique method. Go to the positioning from one of many blocked states, and also you’re met with a video the place grownup performer Cherie DeVille explains why age verification techniques are a nasty thought.
Working remotely, or not remotely working: On TC+, Becca argues that distant work startups that can final aren’t truly, technically, distant work startups. As an alternative, firms that centered on distant work are tapping into tendencies that have been already in play, with extra autonomy and extra flexibility, wherever you’re working from.
Taking a chunk of the Goldman Scrumptious apple: Goldman could also be “in search of a manner out” of its high-profile take care of Apple, which just lately expanded to incorporate financial savings accounts for Apple Card holders, Harri studies.
Sluggish, sluggish, then quick: There’s one thing to be mentioned for laying the groundwork for a corporation earlier than elevating enterprise capital, however Romain’s report this week is an outlier: After bootstrapping for eight years and rising to $16.4 million of annual income, French accounting startup Dougs raised $27 million.
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