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- 💰 Average Pre-Seed Funding Hits $2.7M: What's Hot Now?
💰 Average Pre-Seed Funding Hits $2.7M: What's Hot Now?
Today: Netflix Expands Gaming | Zoom CEO Calls for FTC Teams Probe | DeepMind Predicts AI Chiefs in 5 Years
Kristoffer Lindström
September 06, 2023
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Good morning, tech enthusiasts!
It's Wednesday, September 6, and we're back with another edition of your go-to tech newsletter. Here are the top headlines you won't want to miss today:
Pre-Seed Funding Averages $2.7M
Netflix Expands Gaming, Local Content
Zoom CEO Calls for FTC Teams Probe
DeepMind Predicts AI Chiefs in 5 Years
Google Updates Android, New Logo
Apple Swaps to USB-C in iPhone 15
and more...
READ TIME: 6.4 MINUTES
Spotlight
We have launched a Startup funding database that is free for you as a reader to access.
Recent data reveals that the average capital raised in pre-seed deals over the past two months is $2.7 million. The data, which is particularly fresh, shows a strong focus on AI-related startups. Assuming a typical new investor gains about 30% ownership, this implies an average valuation of $9 million.
💡 Why does this matter?
Understanding the current funding landscape can guide startups in setting realistic expectations for pre-seed rounds. The focus on AI suggests it's a lucrative area for both entrepreneurs and investors.
Tech Companies
Netflix co-CEO Greg Peters announced plans to increase spending on "premium long-form content" and local programming worldwide. Speaking at a Goldman Sachs conference, Peters also revealed Netflix's ambition to expand its gaming portfolio, which currently includes over 50 exclusive mobile games and a cloud-streaming initiative. The company aims to offer games across all devices in the next few years.
💡 Why does this matter?
Netflix's strategic focus on local content and gaming could redefine its competitive edge, offering a more diversified entertainment portfolio to its global audience.
Google has tentatively settled a U.S. class action lawsuit accusing it of violating federal antitrust laws through its Play Store. The lawsuit, led by Utah and involving over 30 states, claimed Google's alleged monopoly led to overcharging and fewer options for consumers. The terms of the settlement remain undisclosed.
💡 Why does this matter?
The settlement could set a precedent for other pending lawsuits against Google, potentially affecting its revenue streams and market practices.
The Federal Trade Commission is expected to file an antitrust lawsuit against Amazon later this month. The suit will focus on Amazon's marketplace, where third-party merchants have complained about tied access to Amazon's logistics service.
💡 Why does this matter?
The lawsuit could have far-reaching implications for Amazon's business model and the broader e-commerce landscape. It adds to the growing regulatory scrutiny under the Biden administration, which has made antitrust issues a key focus.
Microsoft is expanding its partnership with Abu Dhabi-based Group 42 to offer sovereign cloud infrastructure in the UAE. The collaboration aims to provide the public sector and regulated industries with cloud and AI features on Microsoft's Azure platform.
💡 Why does this matter?
This partnership could be a game-changer for tech adoption in the Middle East, offering localized cloud and AI solutions that meet regulatory requirements. It may also open doors for industry-specific AI projects, including climate initiatives.
Zoom CEO Eric Yuan has called on the U.S. Federal Trade Commission to investigate Microsoft's bundling of Teams, following a similar EU investigation. Microsoft recently decided to sell Teams separately in Europe due to regulatory pressure.
💡 Why does this matter?
The call for an FTC investigation could escalate competition between Zoom and Microsoft, potentially affecting market dynamics and regulatory scrutiny in the video-conferencing sector.
The bundeling tactic from Microsoft has been extremly effective. If the practise will become challanged in both EU and the USA it could lead to a major shift in proruct strategy from Microsoft.
TikTok has started transferring user data to its first European data center, with full migration expected by Q4 2024. The company also introduced additional data privacy measures under Project Clover, including security audits by the U.K.-based NCC Group.
Startup Scene
Josys, a SaaS management platform, raises $93 million in a Series B round led by Global Brain and Globis Capital Partners.
AI Corner
Mustafa Suleyman, co-founder of Google's DeepMind, predicts that within the next five years, everyone will have access to AI-powered personal assistants that are "super smart" and understand personal history. These AI "chiefs of staff" will help manage and process information, aiding in both personal and professional tasks.
💡 Why does this matter?
The democratization of AI could revolutionize personal productivity and decision-making. As AI becomes more affordable and widespread, it could become an integral part of daily life, affecting how we manage time, make decisions, and even how we think creatively.
All 50 U.S. states' attorneys general have called on Congress to form a commission investigating the impact of AI on child exploitation. The initiative aims to extend existing restrictions to cover AI-generated child sexual abuse material (CSAM).
Zoom is integrating a new AI assistant to enhance its video conferencing service. The AI Companion will offer features like meeting highlights, summaries, and a chatbot for queries. The service will be free for paid users.
Insights & Analysis
ChartMogul's latest report reveals that the best SaaS companies reach $10 million in Annual Recurring Revenue (ARR) in just under three years. The top quartile takes under four years, while the median is five years. Interestingly, only 13% of startups they track reach $10M ARR after ten years.
💡 What can we learn from this?
This data serves as a valuable benchmark for SaaS startups aiming to scale. The 8% monthly growth rate post-$1M ARR appears to be a critical factor for breakout success, offering a clear target for growth strategies.
Apps & Gadgets
Google is updating its mobile apps and services, including a new At a Glance widget and enhancements to its Lookout visual accessibility app. The updates come with a refreshed Android logo, ahead of Android 14's anticipated release.
New data from Appfigures shows a decline in U.S. App Store downloads, even as overall revenue grows. The Mobile Download Index dropped to 83.59 as of August 31, 2023, a 9% decrease from 2018 levels.
💡 Why does this matter?
While big apps like Facebook remain dominant, the decline in downloads signals increased competition and market saturation. However, the focus on monetization has led to revenue growth, offering a silver lining for developers.
Apple's iPhone 15 will feature a USB-C charging port, marking the first iPhone charging system change in over a decade. The change comes after EU and Indian mandates for universal charging ports.
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