AI Secures 31% of Global Venture Funding, Outshining All Sectors

TECH BRIEF

TSMC Surges 54% Q3 Earnings, ADRs Bolster on Overnight Trading (3 minutes read)

Taiwan Semiconductor Manufacturing Co.'s net profit rose 54% in the third quarter, hitting $10.1 billion, exceeding average estimates, powered by strong Nvidia AI chip sales. The company's shares are up more than 70% this year amid high expectations for its AI business. This solid performance is attracting retail investors, with its ADRs climbing on Robinhood's overnight platform. Despite uncertain global AI spending, TSMC is charting a rapid expansion plan focusing on AI chip markets in Europe, Japan, Arizona, and Germany.

ASML CEO Predicts Prolonged Chip Market Recovery Until 2025 (4 minutes read)

ASML Holding NV CEO Christophe Fouquet warned of a slow chip market recovery extending into 2025, causing shares across the chip industry to plummet. A slump in demand has resulted in customer cautiousness and delayed investments, compelling ASML to decrease its earnings guidance. The news triggered a 16% fall in ASML's share price, the largest since June 1998. Despite robust AI-related server demand, recovery in the automotive, mobile and PC markets remains slow.

AI-Powered Software-Delivered Services Reshaping Industry Dynamics (11 minutes read)

A shift in the software industry toward AI-powered companies known as Software-Delivered Services (SDS) is observed. These SDS firms focus on delivering work instead of tools, differentiating them from traditional SaaS. They face increased accountability for their company's work quality and must adapt to a new billing model that reflects the value delivered. This move presents a significant challenge but could transform industries by combining the efficiency of software with a professional services approach.

Semrush Acquires Third Door Media, Set to Enrich Marketer Resources (10 minutes read)

Semrush, an online visibility management and SaaS platform, has acquired Third Door Media, including its brands Search Engine Land, MarTech, SMX, and Digital Marketing Depot. The deal allows Semrush to expand its content and educational offerings and enhance marketers’ insights, while maintaining the brands as standalone entities. The merger aims to provide substantial value and innovation to the marketing community and support the long-term vision of both companies.

AI Secures 31% of Global Venture Funding, Outshining All Sectors (6 minutes read)

AI ventures attracted 31% of global VC funding in Q3, marking its second-highest allocation ever, reports CB Insights. While slightly lower than Q2's 35%, the growth is significant, considering AI's share was just 13% in Q3 2022. In contrast, FinTech accounted for roughly a fifth of total funding in 2021, while crypto peaked at 6%. As of Q1's end, US venture firms held a record $328.4 billion in uninvested capital, suggesting the AI funding surge may continue.

Permira Seals $7.2B Squarespace Takeover, Remains Private Equity (3 minutes read)

Private equity firm Permira has concluded its acquisition of website builder Squarespace after raising its offer to $46.50 per share, bringing the valuation to $7.2 billion. Meanwhile, Squarespace has sold its restaurant reservation service, Tock, to American Express for $400 million. Squarespace CEO Anthony Casalena, along with VC firms Accel and General Atlantic, retain significant investment in the company after the takeover.

Uber Explores Potential $20bn Acquisition of Expedia in Diversification Push (8 minutes read)

Uber has been considering a bid for travel booking site Expedia, potentially its largest acquisition, as part of its diversifying strategy. Uber CEO Dara Khosrowshahi, formerly Expedia CEO, could possibly abdicate involvement in the deal process. However, no formal approaches have been made yet, and there's a potential that the deal may not proceed.