Welcome to Startups Weekly, your essential roundup of the biggest stories and trends in the world of startups. As Haje Jan Kamps takes a break, Anna Heim steps in to bring you this week’s most compelling developments.

Major Shifts in the Startup Ecosystem

Oda’s Layoffs and Strategic Refocus

Norway-based online supermarket delivery startup Oda, backed by SoftBank, has announced the layoff of 150 employees. This move is part of a strategic shift to concentrate on its core markets, Norway and Sweden, with the aim of achieving profitability by next year. The end of the 0% interest rate era has significantly impacted many startups, and Oda is no exception.

Co-founder Jon Kåre Stene, now a partner at VC firm Skyfall Ventures, expressed hope that these layoffs might catalyze new startups or bolster existing ones in the Norwegian tech scene. Historically, Europe has seen several regions emerge as startup hubs, such as Estonia with Skype, and Norway might be next in line.

Humane’s Ai Pin Troubles

Humane’s Ai Pin, a much-anticipated wearable tech product, has encountered significant hurdles. The startup has advised customers to stop using its charging case due to battery fire risks. This precaution, prompted by a single complaint, exacerbates the company’s ongoing struggles with the product’s rollout.

ten ten’s Viral Success

French startup ten ten has made waves with its social app, which has seen over 1 million downloads in France and 6 million globally. The co-founders are working tirelessly to manage this explosive growth and capitalize on the app’s viral success.

LoanSnap’s Legal Woes

AI mortgage startup LoanSnap, despite high-profile backers like Reid Hoffman and Richard Branson, faces severe challenges. The company is embroiled in lawsuits, fines, and evictions, causing significant concern among employees about its future stability.

Fisker’s Fall from Grace

TechCrunch’s Sean O’Kane provides a detailed account of Fisker’s decline, highlighting internal conflicts and a failure to establish essential operational processes. This story underscores the pitfalls that can beset even the most promising automotive startups.

Firefly’s Tragic Loss and Resilience

The Israeli startup Firefly continues to forge ahead despite the tragic loss of its co-founder and CTO, Joseph “Sefi” Genis, who was killed in a Hamas attack on October 7. The company’s resilience in the face of such adversity is a testament to its commitment and determination.

Noteworthy Fundraises

Solutions by Text’s $110 Million Round

Solutions by Text (SBT), which enables bill payments and loan applications via text messaging, has raised $110 million. Unlike many startups, SBT was bootstrapped from its inception in 2008 until 2021 and has remained EBITDA positive. Under CEO David Baxter, the company has expanded its message volume significantly, from 20 million to 200 million messages per month.

Sword Health’s $160 Million Funding

Sword Health, an AI-driven virtual physical therapy startup, secured a $30 million primary funding round and a $130 million secondary round, raising its valuation to $3 billion—a 50% increase since its Series D in November 2021.

Neural Concept’s $27 Million for EV Design

Swiss startup Neural Concept has raised $27 million to accelerate the design of electric vehicles. By reducing design time to 18 months, the company aims to help European and American manufacturers compete with Chinese EV producers.

GetWhy’s $34.5 Million for AI Market Research

GetWhy, a consumer research tech company, raised $34.5 million to enhance its AI capabilities for conducting market studies and extracting insights from video interviews. PeakSpan Capital led the funding round.

Storyblok’s $80 Million for AI-Enhanced CMS

Austrian startup Storyblok secured $80 million to integrate more AI features into its headless content management system, aimed at non-technical users.

Additional Highlights

  • Ticketmaster Antitrust Lawsuit and Data Breach: The ongoing legal issues and recent hack at Ticketmaster may pave the way for new ticketing startups.
  • SAP’s Acquisition of WalkMe: SAP acquired digital adoption platform WalkMe for $1.5 billion.
  • Bridgepoint’s Stake in LumApps: Private equity firm Bridgepoint bought a majority stake in LumApps for $650 million.
  • Salesforce’s Purchase of Spiff: Salesforce acquired sales commission management company Spiff for $419 million.
  • Spanish Startups’ Growth: Spanish startups collectively reached €100 billion in value last year, highlighting the growth of the country’s tech ecosystem.

From my point of view, this week’s news underscores the dynamic and often unpredictable nature of the startup world. While some companies face significant challenges, others are forging new paths and achieving remarkable growth. The resilience and innovation within the startup community continue to drive progress and inspire new ventures.

Source: https://techcrunch.com/2024/06/07/startups-weekly-ups-downs-and-silver-linings/