Borrowing costs have risen, making profits elusive, and 2023 has proven to be a challenging year for startups. According to PitchBook data, approximately 3,200 startups, representing a total of $27.2 billion in venture funding, have folded. Many find themselves in a zombie state, unable to grow or secure funding but managing to avoid immediate closure. Layoffs are occurring, and in the coming weeks, more startups are expected to shut down to avoid prolonging the inevitable into the new tax year. I’ll delve deeper into this situation in the coming weeks, so stay tuned.
On a lighter note, instead of working on this newsletter, I found myself engrossed in the TechCrunch pub quiz for an unexpectedly extended period. Despite having read every story on the site for the past year to compile this newsletter, my score was embarrassingly low. Nevertheless, it was an enjoyable diversion—give it a try!
In the realm of AI, there are fascinating developments. Devin explores how “Star Trek: Deep Space Nine” fans are leveraging AI to enhance the quality of the old show, a process known as de-grainification. Ron discusses the enduring relevance of traditional AI models in enterprises, coexisting with the rise of large language models (LLMs).
The AI-related news also includes Animate Anyone turning online photos into lifelike video deepfakes, Google’s new AI model Gemini receiving mixed reviews, and Elon Musk seeking $1 billion for his latest AI venture, xAI.
In the Elon Musk saga, despite the controversies surrounding him, one cannot deny his ability to attract attention. Darrell humorously dissects the Tesla Cybertruck launch and Musk’s unique management approach, highlighting the uncertainties surrounding the truck.
SpaceX makes headlines by acquiring a parachute company for $2.2 million, and the Tesla Cyberbeast faces scrutiny for falling short in towing compared to competitors. X, Musk’s venture, secures licenses for payment processing in 12 U.S. states, inching closer to Musk’s vision of an “everything app.”
Amid the startup landscape, several companies face closure, including ZestMoney, which went from a $450 million valuation to shutdown, and Doubtnut, an edtech company that sold for $10 million after passing up a $150 million deal from Byju’s. Veev, a prefab home builder, goes from unicorn status to extinction, highlighting the unpredictable nature of startup success.
