Welcome to Startups Weekly, your go-to source for the latest in the world of startups. This week, we dive into Apple’s big AI announcement, Elon Musk’s reaction, and the roller-coaster journeys of prominent startups like Byju’s and Carta. Buckle up for a ride through innovation, drama, and some surprising success stories.

Apple Unveils “Apple Intelligence” at WWDC 2024

At the Worldwide Developers Conference (WWDC) 2024, Apple announced a major upgrade to Siri, rebranding it as “Apple Intelligence” (AI). This new AI is designed to offer a more personalized and private experience, leveraging deep integration with users’ lives. Tim Cook emphasized that privacy remains a core focus, ensuring that users’ data is handled with utmost care. The new features include Genmoji, AI-crafted emojis, and “Private Cloud Compute,” promising enhanced functionality without compromising user privacy.

However, not everyone is thrilled. Elon Musk has threatened to ban iPhones from Tesla, SpaceX, and xAI, citing concerns over the integration of ChatGPT-like features in Apple’s AI. This bold move raises questions about the balance between innovation and control in the tech industry.

Tech Titans’ Tumultuous Week: Byju’s and Carta

Byju’s Downfall

Byju’s, once a $22 billion edtech leader, has seen its valuation plummet to zero in BlackRock’s assessment. The company has faced numerous challenges, including missed financial targets, rapid executive turnover, and public criticism from investors. This dramatic fall from grace serves as a stark reminder of the volatility in the startup ecosystem.

Carta’s Valuation Nosedive

Carta, a company that once aspired to dominate the stock trading market, has also experienced a significant downturn. Its valuation has dropped from $8.5 billion to potentially as low as $2 billion. The company has been embroiled in controversies, including misuse of customer data and a failed secondary trading venture. These issues have led to lawsuits, a toxic workplace culture, and a loss of clients, casting doubt on its future prospects.

Additional Challenges

  • Snowflake Data Breaches: Snowflake has faced a series of data breaches involving major clients like Ticketmaster and LendingTree. A former employee’s insecure demo account was exploited by hackers, compromising sensitive data.
  • Apple’s “Sherlocking”: Apple has once again drawn criticism for integrating features from popular third-party apps into its own ecosystem, undermining independent developers.
  • Rippling’s Restrictive Practices: The HR startup Rippling has been criticized for preventing former employees now working at competitors from cashing in on their stock options.

Noteworthy Fundraises

Mistral AI’s Impressive Series B

Paris-based Mistral AI has raised $640 million in its Series B funding round, led by General Catalyst. The startup, founded by former Meta and DeepMind experts, aims to challenge established AI giants like OpenAI. Despite the open-source nature of some of its models, the company’s top-tier products are tightly controlled, available only through API access.

Italian Founders Fund’s Boost

The Italian Founders Fund (IFF) has launched with €50 million to support Italy’s burgeoning startup scene. IFF plans to invest in 25 early-stage companies, helping to close the funding gap and foster innovation across the country.

Urvashi Barooah’s Venture Success

Despite initial setbacks, Urvashi Barooah has become a partner at Redpoint Ventures, overseeing their $650 million ninth fund. Her journey from being rejected by every MBA program to becoming a key player in venture capital is an inspiring story of resilience and determination.

Fizz’s Financial Revolution

Fizz, a debit card designed for Gen Z, has secured $14.4 million in seed funding from Kleiner Perkins. Created by Harvard and Cornell dropouts, Fizz aims to offer an alternative to traditional banking for a generation wary of credit.

Other Tech News Highlights

  • Meowtel’s Success: Meowtel, a cat-sitting service, has achieved profitability despite initial skepticism from investors. With 2,200 sitters and over 95,000 successful sits, it demonstrates the potential of niche markets.
  • Rivian’s Streamlined Operations: Electric vehicle manufacturer Rivian has simplified its operations, focusing on key products and improving its market position.
  • Raspberry Pi’s LSE Debut: The popular Raspberry Pi has gone public on the London Stock Exchange, achieving a significant valuation boost.
  • BeReal’s Funding: BeReal, an app promoting unfiltered social media sharing, has received €500 million from Voodoo, signaling confidence in its unique approach.
  • Light Phone III’s Minimalism: The Light Phone III offers a stripped-down mobile experience, catering to users seeking simplicity and minimal digital engagement.
  • SpaceX’s Starship Success: SpaceX has successfully launched and recovered its latest Starship, showcasing continued advancements in reusable rocket technology.

Conclusion

From my perspective, this week’s events highlight the dynamic nature of the startup world. Apple’s AI advancements promise exciting new possibilities, but also spark debates on privacy and innovation. Meanwhile, the struggles of Byju’s and Carta remind us of the challenges startups face in maintaining growth and credibility. On a positive note, the impressive fundraises and success stories illustrate the resilience and creativity driving the industry forward.