Global VC Activity Continues Slow Streak into Q3 2024

TECH BRIEF

Global VC Activity Continues Slow Streak into Q3 2024 (8 minutes read)

Global venture capital activity declined in Q3 2024, signalling a second consecutive weak year for VC investments and exits. The quarter witnessed a drop in the numbers of deals, average deal size, VC fundraising, exits, and dollar amounts raised. The U.S saw its first quarter-over-quarter decline in dealmaking in a year, reducing to pre-2021 levels. Furthermore, the number of public listings was minimal with only 10 companies going public and creating a modest total exit value of $11.2 billion. In Asia, venture activity continued to slow with investments during Q3 hitting the lowest figure since Q1 2017. Latin America too reported a slow dealmaking activity with total investment for the year expected to slightly exceed $4 billion.

Salesforce and Sales Software Q2 Earnings: Mixed Results Amid Market Uncertainties (7 minutes read)

Salesforce's Q2 earnings were in line with predictions, reporting revenues of $9.33 billion, an 8.4% YoY increase, which led to a 7.1% stock upsurge. Conversely, ZoomInfo's revenues fell by 5.5% YoY to $291.5 million, falling short of analysts' expectations, although the stock is up 1.7%. Freshworks lead the sales software segment with an impressive 20% YoY revenue increase, reaching $174.1 million, outperforming analyst expectations, albeit with a 17.2% stock decrease. Among its peers, HubSpot recorded the fastest revenue growth of 20.4% YoY to $637.2 million, surpassing analysts' predictions, and its stock went up by 11%.

Q2 '24 Public Cloud Software Earnings: Entrepreneurs Navigate Through Shaky Growth And Sales Efficiency (15 minutes read)

The Q2 earnings season for cloud businesses reveals a mixed picture. While net new ARR in Q2 was up from the first quarter, it was down from the same period in the previous year. The percentage of companies exceeding Q2 consensus estimates fell to about 90% and the median beat was 1.6%. Guidance for Q3 reveals 55% of companies projected better performances than consensus, up from 47% in the previous quarter. Growth, high net revenue retention, sales efficiency, and a change in revenue consensus estimates for 2024 are key aspects of a successful quarter.

AI Adoption: Business Efficiency and Innovation Drive Investment, Reveals G2 Survey (40 minutes read)

G2's AI adoption survey reveals that AI reshaping businesses in unforeseen ways. About 75% of businesses use multiple AI features in daily operations, while 79% prioritize AI capabilities in their software selection. The most adopted AI tools are chatbots and virtual assistants, integrated by 69% of organizations. The marketing department leads others in AI adoption, as reported by 53% of organizations. The top motivator for investing in AI is operational efficiency (nearly 40% of companies), while the biggest obstacles for AI implementation are lack of employee awareness (34%) and data quality (23%).

Klarna CEO Warns IPO Threatened by Europe's Tech Talent Flight (5 minutes read)

Klarna CEO, Sebastian Siemiatkowski, warned that unfavorable European laws regarding employees' stock options, could lead to a brain drain to US tech giants like Google, Apple and Meta, especially as Klarna heads towards its IPO. The CEO expressed concerns over the depreciation of share benefits due to costs and unpredictable employee social security payments in the UK and Sweden, escalating financial planning challenges. Furthermore, European sentiment against high compensation especially in the financial services sector threatens competitiveness.

Oura Unveils Upgraded Ring 4: Enhanced Accuracy, Extended Size Range, and Improved App Features (3 minutes read)

Oura has announced the launch of the $349 Oura Ring 4, boasting a slimmer design, enhanced accuracy, and wider size range. Its revamped algorithm is expected to improve signal quality by 120% and increase blood oxygen tracking accuracy by 30%, while boosting battery life to up to eight days. The Oura app is also set to see a complete redesign, with enriched features for stress tracking, reproductive health, heart health, and an expanded Labs beta program. Shipping begins on October 15th.

Nvidia Executives Sell $1.8B in Shares, Further Sales Expected (5 minutes read)

Nvidia insiders have sold shares worth more than $1.8 billion this year, marking the highest annual insider sales since 2020. The majority sales were from CEO Jensen Huang and director Mark Stevens, both having pre-planned trading plans. Despite investor concern around Nvidia's delayed Blackwell chips and AI spending longevity, more sales are expected. However, this does not necessarily signal bearishness, as pre-planned sales are typically not tied to stock news or price movements.

Microsoft Invests $750M in OpenAI to Boost AI Innovations (2 minutes read)

Microsoft recently invested $750 million in OpenAI's latest funding round, an AI research organization. This move aligns with Microsoft's vision to drive innovation in the AI sector, integrate AI into its suite of products and services, and maintain a competitive edge in AI technology. This partnership supports responsible AI development, hinting a revolutionary future for the tech industry.

Google's Gemini Live to Support Additional Languages, Expanded Capabilities Imminent (2 minutes read)

Google's AI voice chat, Gemini Live, which was initially available only in English, is extending its service to include French, German, Portuguese, Spanish, and Hindi. Google plans to introduce more than 40 languages over the upcoming weeks. Additionally, updates facilitating Gemini extensions for Calendar, Tasks, and Keep are promised to be arriving "over the coming weeks."