Glenn's Weekly Digest - 1/19/24
Your Weekly Guide to the Startup Universe: Navigating the World of VC & Startups for Students
Stories of the Week
Silicon Valley Streamlines: Tech Layoffs Continue in the Digital Domain
Sundar Pichai warns Google staff more layoffs are coming [TechCrunch]
After the firing of another 1,000 employees at Google, CEO Sundar Pichai warned employees that more restructuring will likely occur over the next year.
Why it matters: This is a negative signal that broad layoffs in the tech sector look primed to continue as companies focus on profitability, reducing layers of management, and adopting artificial intelligence software to lighten workloads.
Growing Trend: According to Layoffs.fyi, there have already been 7,785 layoffs within tech in 2024 thus far. This includes major entities like Discord (17% of workforce), Twitch (35% of workforce) and Unity (25% of workforce).
Silver Lining: Given the lack of opportunities currently available, these layoffs seem to be contributing to a rise in entrepreneurship, particularly in the Bay Area. Historically, downturns in the economy have created many generational companies like AirBnB, Uber, and DoorDash.
Focus on AI: Despite the layoffs, there remains an interest in doubling down on AI. Companies are eager to not fall behind in the AI revolution, ensuring they acquire these capabilities and prioritizing them, sometimes even at the cost of other projects. Some tech firms have been offering hefty salaries for AI roles, with a report saying last year that “Match's Hinge dating app was looking for a vice president of AI with a base salary of up to $398,000 a year and that Amazon was offering a top salary of $340,300 for a senior manager of applied science and GenAI.”
Apple Puts Its Core into VR: Doubling Down on a Virtual Future
Apple Vision Pro release date: Augmented reality headset arrives in February, Tim Cook announces [The Independent]
In a time when most major tech companies are pulling back from VR, Apple has announced their flagship Vision Pro Product will be released on February 2nd.
Why this matters: Apple has promoted its new headset as the start of a revolutionary computing era, which it refers to as "spatial computing". This technology merges virtual elements with actual physical spaces, enabling users to position screens and other digital objects within their surroundings.
Pricing Power: At a minimum price of $3,499, Apple will truly be testing customers willingness to pay. The company is often at the forefront of consumer trends but it will be interesting to see early consumer reaction.
To be determined: Apple likely plans to develop a lighter, more affordable version of its "Pro" headset, hinting at future advancements in its spatial computing technology. However, the long-term goal of integrating this technology into conventional eyeglasses is challenging and likely several years away.
Top Reads This Week
Welcome Back to the Unicorn Club [TechCrunch]
Superstar investor and founder of Cowboy Ventures, Aileen Lee, provides an in-depth analysis of the evolution of the Unicorn Club – startups valued at over $1 billion – over the past decade. This article, which revisits the landscape after a decade since the term "unicorn" was first coined by Aileen, reveals a significant increase in the number of unicorns, rising from 39 in 2013 to 532 in 2023. The article also discusses the challenges faced by unicorns, including market valuation adjustments and capital efficiency issues, while hinting at the potential of OpenAI becoming the decade's first "superunicorn."
Could State Space Models Kill Large Language Models? [The Information]
An interesting piece by The Information examines the rapid evolution in AI technology, focusing on the potential shift from transformer models, like those behind ChatGPT, to more efficient state space models (SSMs). Highlighting the increasing pace of technological replacement in various industries, it points out the high computational costs associated with transformer models. The piece introduces Mamba, an innovative SSM that outperforms transformers in handling larger inputs and language generation, developed by AI experts Tri Dao and Albert Gu.
Top 5 Deals of the Week:
Forta, an SF-based company looking to improve access to clinical care using AI, raised $55 million in Series A funding led by Insight Partners.
Rainbow, a small-business insurance underwriter, raised $12m in seed funding from Caffeinated Capital, 8VC, and others.
Luma AI, a creator of AI software that turns text prompts into videos and 3D objects, raised $43 million in Series B funding led by a16z.
Robin AI, a London-based AI-powered legal copilot, raised $26 million in Series B funding led by Temasek.
Overmoon, an SF-based vacation rental platform, raised $10 million in seed funding led by NFX & Khosla Ventures.
Venture Jobs of the Week
FinTech Investor, Headline Ventures [Remote]
Investor, Will Ventures [Remote]
Investor, G2 Venture Partners [Bay Area]
Associate, Savano Capital Partners [DC]
Summer Associate, G2 Venture Partners [Bay Area]
MBA Summer Associate, Emerson Collective [Bay Area]
Director of Biz Development & Portfolio Operations, Foundation Capital [Bay Area]
Thank you for joining us for another edition of Glenn’s Weekly Digest! We hope you found valuable insights into the dynamic world of venture capital and startups. If you have any feedback or suggestions, feel free to reach out. Stay tuned for more exciting updates next week!
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