Gene-Edited Babies: The Future of Genetics, but Not All CRISPR Startups Will Lead the Way

Babies Crawling in Diapers

Every Baby Has About 100 New Genetic Mutations

Mood board – Mike Watson / Getty Images

Let me share some eye-opening news. Every child embodies genetic experimentation, with nature exhibiting indifference if things don’t go as planned. Our genomes present a complex tapestry shaped by conflicting evolutionary forces, and each of us carries roughly one hundred novel mutations.Each birth introduces a unique mutation into the genetic pool.

Thus, I anticipate that in the future, gene editing of embryos will become commonplace once humanity confronts various daunting challenges, including climate change. There may come a time when natural conception is perceived as reckless.

Reaching that future is no trivial task. However, if you’ve been following the buzz from the tech community this year, it’s no surprise you feel optimistic. By 2025, we discovered at least three startups focused on creating gene-edited babies.

So, is the dawn of CRISPR on the horizon, or could these startups potentially face backlash?

Preventing Genetic Diseases

Among these startups, Manhattan Genomics and Preventive aim not for enhancement but to avert severe genetic disorders. This noble objective is commendable, but it’s important to note that many of these conditions can already be forestalled through existing screening techniques, such as genetic testing of IVF embryos prior to implantation, a process with a high rate of success.

So why pursue the development of gene-edited embryos, a complex and legally challenging endeavor, when IVF screening already provides a viable solution?

Preventive did not respond to inquiries, but a spokesperson from Manhattan Genomics noted that couples undergoing IVF often don’t have enough viable embryos to choose from. By editing disease-carrying embryos instead of discarding them, the likelihood of having a healthy child increases. The company believes that gene editing could enhance the chances for approximately ten embryos affected by Huntington’s disease and thirty-five embryos affected by sickle cell disease annually for couples using IVF.

However, this translates to a very limited number of births. Approximately one-third of IVF embryos lead to viable births, and this percentage may drop further post-editing. Furthermore, significant challenges accompany this approach. Although CRISPR technology has advanced, there’s still a risk of introducing harmful mutations as unintended consequences.

Moreover, the editing process often fails to initiate or can continue even after the embryo has begun dividing. This results in various genetic alterations within the same embryo, a phenomenon known as mosaicism. The illegal CRISPR children from China come to mind, announced in 2018.

Consequently, it becomes uncertain whether the mutation causing the disease was indeed corrected in the edited embryo and whether any harmful mutations emerged as a result.

Doing It Right

Solutions do exist. For instance, some gene-edited animals have been developed by modifying stem cells and then cloning them once the desired alterations have been confirmed. However, I previously explained that cloned animals often exhibit various health issues and unexpected traits, underscoring the necessity for foundational research and rigorous oversight should this approach be pursued for humans.

We have two strong examples of responsibly introducing embryonic gene editing through mitochondrial donation initiatives in the UK and Australia. Mitochondria are cellular energy producers that contain their own small genomes. Mutated mitochondria can lead to severe health issues if passed down to offspring, but this risk can be mitigated by substituting them with healthy donor mitochondria.

A version of mitochondrial technology emerged in private fertility clinics in the US during the 1990s, during which humanity witnessed the first genetically modified human. Initial attempts led to the banning of this technology in the US.

While mitochondrial donation was previously prohibited in the UK, changes in the law came about following advocacy from patient groups, extensive dialogue, and consultation. It now receives approvals on a trial basis as needed.Australia is pursuing a similar path.

What Is the Real Objective?

This is the ideal framework for introducing new reproductive technologies: transparently, legally, and under independent supervision. Yet, at least two startups are reportedly conducting experiments in countries with laxer gene editing laws.

This does not advance science, as trust in the claims made by private companies acting without regulatory oversight diminishes. Conversely, this approach could prompt a backlash, leading to more countries tightening regulations against gene editing.

For these billionaires – with Preventive’s investors including notable figures like OpenAI’s Sam Altman and Coinbase’s Brian Armstrong – if your genuine intention is to combat severe genetic diseases, investing in nonprofit research organizations could yield significantly greater results.

Or is the ultimate aim to engineer your own child instead of assisting other couples in achieving healthy pregnancies? This is clearly the mission of the third startup, Bootstrap Bio.

In next month’s column, we will explore whether gene editing can truly be utilized to enhance our children.

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Source: www.newscientist.com

Why Tech Startups Aim to Send Your Waste Deep Underground

Tanks for disposal at a Kansas site where waste is funneled into underground salt caves

Vaulted Deep

A startup named Vaulted Deep has partnered with Microsoft to pump millions of tons of treated human waste, fertilizer, and various organic waste deep underground as a method to reduce carbon dioxide levels in the atmosphere. This strategy also mitigates soil contamination from PFAs and other chemical pollutants that can leach from waste.

“We aim to tackle both challenges simultaneously,” Omar Abu Sei stated. “We address the waste issues that compromise local water, air, and land while also contributing to climate solutions.”

In recent years, the Texas-based startup has injected almost 70,000 tons of carbon-rich waste underground, successfully removing over 18,000 tons of carbon dioxide. The technology used is derived from the oil and gas industry, enabling the injection of a slurry comprising liquid, solid, and gas simultaneously. This type of waste typically ends up in landfills or is spread over agricultural fields.

According to Abou-Sayed, if waste is injected at depth, it will eventually release back into the atmosphere, which could potentially liberate millions of tons of carbon. The company capitalizes on this by selling each ton of CO2 removed to businesses or governmental entities.

The contract with Microsoft targets the removal of 4.9 million tons of CO2 over the next 12 years, addressing challenges in the carbon removal sector that attract customers. Microsoft aims to be carbon negative by 2030 and has purchased more carbon removal credits than any other organization.

Abou-Sayed mentions that this agreement will enable Vaulted Deep to identify new injection sites beyond its existing two locations. One site injects “biosolids” remaining from treated wastewater approximately 1,600 meters below the surface in Los Angeles, while the second site in Hutchinson, Kansas, pumps human waste, fertilizer, and organic materials like paper sludge into salt caverns located hundreds of meters underground.

According to one report, the global production of organic waste is substantial enough to facilitate this process and potentially eliminate up to 5 billion tons of CO2 annually.

Vaulted Deep’s mission is to ensure that the maximum amount of waste can be accessed, particularly targeting wet solid slurries that have limited disposal options. “We have developed expertise in identifying where these smooth waste materials can be found,” explains Abou-Sayed. Often, they offer to manage waste disposal at no cost or even provide payment to waste generators.

This system facilitates underground waste injection.

Vaulted Deep

With high concentrations of nitrogen and PFAs found in waste, storing waste underground instead of spreading it on fields or sending it to landfills can significantly lower surface contamination levels. Many municipalities have faced challenges in finding conventional disposal methods due to stricter PFAs pollution regulations.

“This is a highly innovative approach,” commented Diana Oviedo Valgas from the Stroudwater Research Center in Pennsylvania. “We need diverse strategies to address contaminants, not just PFAs.” However, she emphasizes that injecting waste underground does not eliminate contaminants. “It’s somewhat concealed,” she adds.

To ensure safety during the injection process, Abou-Sayed noted that all sites will undergo a thorough permitting procedure managed by the U.S. Environmental Protection Agency. This is necessary to demonstrate that leaks from the storage area into groundwater or backflow from the well won’t occur, and to reduce the risk of induced seismic activity during the injection.

topic:

Source: www.newscientist.com

Elizabeth Holmes’ Partner Draws Millions for Blood Testing Startups

Elizabeth Holmes’ partner and father of her child is said to have secured millions in funding to launch a new blood-testing company, which bears a striking resemblance to the firm that led Holmes, the founder of Theranos, to federal prison.

As reported by the New York Times, Billy Evans, the heir to a hotel fortune, is promoting his new venture, Haemanthus, to potential investors. Evans’ concept involves a health testing company capable of analyzing users’ blood, urine, and saliva.

The business model of Haemanthus and the pitch provided by Holmes-led Theranos show significant similarities.

Holmes founded Theranos in 2003 after her healthcare technology startup attracted substantial investments, boasting hundreds of millions from high-profile backers. She asserted that her company had developed a method for rapidly and accurately testing small blood samples to arrive at a diagnosis.

Haemanthus, according to its January patent, claims its technology can utilize sweat, urine, saliva, and small blood samples for diagnostics. The company, initiated by Evans, who has two children with Holmes, was established in February 2024 and plans to start animal testing before moving on to human trials.


The technology claims made by Theranos inflated its valuation to $9 billion in 2014. However, a critical investigation by the Wall Street Journal revealed significant inaccuracies in Theranos’ assertions, indicating the tests were not only illegal but also produced false results.

The scandal culminated in 2018 when the company was dissolved, leading to criminal charges against Holmes and the firm’s president. Holmes received an 11-year prison sentence in 2022 for defrauding investors.

Marketing materials for Haemanthus, as reviewed by The New York Times, indicate that the technology employs lasers to analyze blood, saliva, and urine from pets, promising rapid disease, cancer, or infection detection.

Reportedly, Haemanthus aims to develop compact, wearable versions of its devices for human use in the long run, according to The Times.

Several investors have already expressed interest in the pitch. While reportedly receiving guidance from Holmes, Evans has managed to raise nearly $20 million from friends and other backers.

Evans met Holmes in 2017 during the fraud investigation that resulted in her imprisonment. He is said to reside in Texas with their child, while Holmes serves her sentence approximately two hours away.

Source: www.theguardian.com

The Future is Here: AI Tools Revolutionize Recruitment for Startups

Envision the future of HR. Picture receiving a notification on your phone informing you that due to recent organizational changes, new personnel need to be recruited. The message includes a list of six well-qualified candidates who align with the organizational culture and are available to start within a month. Your task is simply to choose the best candidate to interview.

Much of this future scenario is already a reality. Platforms like Employment Heroes offer advanced AI tools to assist small businesses in managing HR and recruitment. These tools can even predict future needs and suggest potential candidates proactively.

Utilizing AI tools, Employment Heroes analyzes clients’ businesses, including organizational structure, turnover rates, and hiring timelines, making it easier for small businesses to operate. This global employment management platform uses AI to provide insights and recommendations, such as identifying when a position needs to be filled.

This workforce planning capability has traditionally been inaccessible to small and medium-sized businesses, placing them at a disadvantage in recruitment and staffing. Now, they have access to expertise and support equivalent to that of large corporations.

The right candidates can already line up as soon as a vacancy occurs. Photo: Maria Corniva/Getty Images

This type of predictive HR is particularly beneficial for high-growth SMEs. By providing insights into future staffing needs, it enables strategic planning that ensures the right talent is in place at the right time.

Looking ahead, AI-enabled HR platforms will automate various employment management processes, from employment terms to bonus structures, streamlining operations for small businesses and ensuring fairness and transparency.

Baillie, the Head of People at Mobile Marketing Agency ConsultmyApp, highlights the impact of the Employment Hero platform on recruitment processes, emphasizing its role in enhancing inclusivity and ensuring competitive pay packages.

SmartMatch enables SMEs to deliver competitive packages by analyzing industry trends. Photo: FG Trade/Getty Images

Employment Heroes’ SmartMatch feature offers real-time data insights on industry trends, helping small businesses set competitive pay ranges and attract top talent.

By leveraging data-driven benchmarks, small businesses can align their compensation packages with market standards and ensure they remain competitive in attracting and retaining the best employees.

Let’s reimagine the possibilities. Discover how Employment Hero can revolutionize your work processes.

Source: www.theguardian.com

‘Sustainable Startups Struggle to Fix Broken Food System as Venture Capital Seeks Return on Investment’

Andrew Carter and Adam DiMartino launched Smallhold in 2017 with a goal of providing mushrooms to more people. Carter believed that mushrooms are highly sustainable in terms of water, waste, plastic use, and emissions. Over the years, Smallhold has successfully introduced specialty mushrooms like shiitake, green oysters, and trumpet mushrooms to grocery stores and households across America.

As mushrooms gained popularity as a symbol of sustainability during the pandemic, Smallhold found success and attention from the media, resulting in a valuation of $90 million. Despite starting in a Brooklyn shipping container, the brand expanded rapidly with farms in New York, Texas, and California, selling in 1,400 stores nationwide.

Smallhold’s co-founders, DeMartino and Carter, believe in promoting sustainability and reducing waste in the food industry. However, the company faced challenges when the founders resigned, leading to Smallhold filing for bankruptcy. Although the brand was acquired and reorganized, it struggled to maintain its original vision, closing farms and reducing staff.

For entrepreneurs, Smallhold’s journey serves as a lesson on finding a niche beyond sustainability and ensuring economic sustainability. While the company focused on unique mushroom varieties and sustainable practices, it also built a strong brand through aesthetics and social media. It’s crucial for startups to deliver quality products, maintain profitability, and avoid excessive reliance on venture capital.

In the evolving landscape of food startups, lessons can be learned from Smallhold’s experience. By combining sustainability with quality, variety, and branding, companies can attract customers and thrive in the market. Innovating in the food industry requires a balance between financial responsibility and sustainability goals, defining success on your own terms.

Source: www.theguardian.com

Apply for Competition: Permissionless Capital Welcomes Web3 Startups

Tel Aviv, Israel, April 10, 2024, Chainwire

Web3 platform for startups, unauthorized capital invited Web3 startups to apply to the Permissionless Opportunities event. This program provides eligible Web3 startups with access to the resources they need to successfully build their concepts and bring their products to market.

Permissionless Opportunities provides great Web3 startups with the tools, funding, and connections to navigate the blockchain industry and launch their products. Signing up for a Permissionless event takes just 90 seconds and requires no fees or pitches. Dozens of startups are expected to apply for the first Permissionless Opportunities Event, after which the best applicants will be invited to join the program.

The largest event of its kind for Web3 and blockchain startups, Permissionless Opportunities gamifies the funding process and helps great companies realize their potential. The event has secured partnerships with Solana, Polygon, ImmutableX, Chainlink, Arweave, and more.

Permissionless Opportunities was designed in a game show manner with an audience participation component. Contest winners will be determined equally by a panel of expert judges and community consensus.

Winners of the Permissionless Opportunities Event will have the opportunity to pitch to over 50 leading VCs and partner with an ecosystem that will help advance their concept and provide mentoring and technical support. Other benefits include her one-on-one access to expert advisors, credits, discounts, and extensive media coverage to increase your visibility.

The program targets Web3 startups in the Defi, Infrastructure, Security, Gaming, and RWA categories, covering both B2B and B2C applications. Applications can be registered for Permissionless Opportunities from April 10th to May 1st. The program promises to shine a light on the next generation of his Web3 companies while giving the best applicants everything they need to optimize their prospects for success.

About unauthorized event events

Permissionless Opportunities is the first online event hosted by Permissionless Capital. The startup and investor network believes in equality of opportunity, regardless of a startup's connections, background, or country. Permissionless Opportunities takes the form of an online contest that Web3 startups can apply and participate in for free. Successful applicants will have the opportunity to receive grants, credit, one-on-one mentoring, and maximum media exposure.

Learn more: https://event.permissionlesscapital.io/

Contact

Nil Naamani
nir@permissionlesscapital.io

Source: www.the-blockchain.com

What Venture Capitalists Seek in Emerging Cybersecurity Startups

In cybersecurity, AI is often stands for “already implemented”. Security vendors have leveraged AI-based technology to leverage existing knowledge databases to address talent shortages. As an investor focused on supporting expansion-stage B2B startups in the cybersecurity, AI, and DevOps space, he has recently invested in cybersecurity company Huntress and AI startup Weights & Biases. and cybersecurity companies, I feel fortunate to have a unique perspective on both. It is scheduled to take off after 2024.

From my perspective, organizations today face an uphill battle when it comes to securing their data and networks. Cyber ​​threats are becoming more frequent and severe as the potential attack surface grows and hackers organize increasingly sophisticated schemes. Thanks to the power of artificial intelligence (AI), malicious attackers are becoming more efficient, conducting more personalized attacks, and increasing their scale, resulting in billions of dollars in lost business. .

Meanwhile, organizations of all sizes are innovating new defenses at an astonishing rate, often leveraging advanced AI capabilities as well. Businesses are hungry for solutions that can further enhance their efforts. According to Gartner, global corporate security spending will reach an estimated $188 billion this year and is expected to rise to $215 billion by 2024. Security software spending is the IT area least likely to be cut during an economic downturn. morgan stanley.

The next wave of successful startups will help businesses leverage GenAI to prevent attacks while increasing organizational productivity.

Over the next year, we aim to partner with players to help cybersecurity teams increase productivity and address talent shortages while addressing growing threats.

What VCs are looking for in the next wave of cybersecurity startups

The emergence of large-scale language models (LLMs) such as ChatGPT has created new opportunities for AI-driven innovation within the industry. Here are some of the features investors are looking for in the next successful cybersecurity startup.

Proactive approach to customer education

During the cloud computing revolution, many companies are rushing to implement cloud solutions, putting security on the back burner. This has allowed cybersecurity to catch up to some extent. So far, the opposite is true for generative AI (GenAI). Businesses are keen to reap the benefits of technology, but are very aware of the risks of compromising sensitive information and betraying customer trust. Concerns are growing after major data breaches occur at companies such as samsung. In response, many companies have been reluctant to launch GenAI initiatives, limiting usage to a small cohort or, in some cases, issuing blankets. prohibit.

Source: techcrunch.com

New EU initiative to provide increased support for AI startups using supercomputers for model training

The European Union plans to support its own AI startups by providing access to processing power for model training on the region’s supercomputers, announced and launched in September. According to the latest information from the EU, France’s Mistral AI is participating in an early pilot phase. But one early learning is that the program needs to include dedicated support to train AI startups on how to make the most of the ‘s high-performance computing. “One of the things we’ve seen is that we don’t just provide access; facility — In particular, the skills, knowledge and experience we have at our hosting centers — to not only facilitate this access, but also to develop training algorithms that take full advantage of the architecture and computing power currently available at each supercomputing center. however, an EU official said at a press conference today. The plan is to establish a “center of excellence” to support the development of specialized AI algorithms that can run on EU supercomputers. Rather than relying on the processing power provided by supercomputers as a training resource, AI startups may be accustomed to training their models using specialized computing hardware provided by US hyperscalers. Access to high-performance computing for AI training programs is therefore being enhanced with support wrappers, said EU officials speaking in the background ahead of the formal ribbon-cutting, mare nostrum 5a pre-exascale supercomputer, which goes live on Thursday at the Barcelona Supercomputing Center in Spain. “We are developing a facility to help small and medium-sized enterprises understand how best to use supercomputers, how to access supercomputers, how to parallelize algorithms so that they can develop models in the case of AI,” said a European Commission official. “In 2024, we expect to see a lot more of this kind of approach than we do today.” “AI is now considered a strategic priority for the , they added. “Next to the AI ​​Act, as AI becomes a strategic priority, we are providing innovation capabilities or enabling small businesses and startups to make the most of our machines and this public infrastructure. “We want to provide a major window of innovation.” ” Another EU official confirmed that an “AI support center” was in the works, including a “special . “What we need to realize is that the AI community hasn’t used supercomputers in the past decade,” they noted. “They’re not new users of GPUs, but they’re new to how to interact with supercomputers, so we need to help them. “A lot of times the AI community comes from a huge amount of knowledge about how many GPUs you can put in a box. And they’ve been very good at it. What you have is a bunch of boxes with GPUs, and you need additional skillsets and extra help to scale out the supercomputer and exploit its full potential.” The bloc has significantly increased its investment in supercomputers over the past five years, expanding its hardware to regionally located clusters of eight machines, interconnected via a Terabit network. We also plan to create federated supercomputing resources. Accessed in the cloud, it is available to users across Europe. The EU‘s first exascale supercomputers are also expected to come online in the next few years, with one in Germany (likely next year) and a second in France (expected in 2025). The European Commission also plans to invest in quantum computing, providing hybrid resources co-located with supercomputers and combining both types of hardware, so that quantum computers can act as “accelerators”. There are plans to acquire a quantum simulator that will As the committee states, it is a classic supercomputer. Applications being developed on the EU‘s high-performance computing hardware include projects that simulate Earth’s ecosystems to better model climate change and weather systems. destination earth and one more thing needs to be devised Digital twin of the human body This is expected to contribute to the advancement of medicine by supporting drug development and making personalized medicine possible. Leveraging his resources in supercomputing to launch his AI startup has recently been announced, especially after the EU president announced this fall that his AI model would have computing access to his training program. It is emerging as a strategic priority. The bloc also announced what it called the “Large-Scale AI Grand Challenge.” This is a competition for European AI startups “with experience in large-scale AI models” and aims to select up to four promising domestic startups for a total of four. Access to millions of hours of supercomputing to support foundational model development. According to the European Commission, there will be a prize of 1 million euros to be distributed to the winners, who will be able to release their developed model or publish their research results under a non-commercial open source license. It is expected. The EU already had a program that provided industry users with access to core hours of supercomputing resources through a project recruitment process. However, the bloc is increasing its focus on commercial AI with dedicated programs and resources, and there is an opportunity to incorporate the growing supercomputing network into a strategic power source for expanding ‘Made in Europe’ general purpose AI. They are intently aiming for this. Thus, France’s Mistral, an AI startup that aims to compete with US infrastructure model giants like OpenAI and claims to offer “open assets” (if not fully open source), is an early adopter of It seems no coincidence that the beneficiaries of the Commission‘s Supercomputer Access Program. (That said, the technology company, which just raised €385 million in Series A funding that includes US investors including Andreessen Horowitz, General Catalyst and Salesforce, is at the front of the line for computing giveaways.) That may raise some eyebrows, but hey, it’s another sign of the high-level strategic bets being made on “big AI.”) The ‘s “Supercomputing for AI” program is still in its infancy, so it’s still unclear whether there will be enough benefits in model training to warrant reporting from dedicated access. (We reached out to Mistral for comment, but he did not respond as of press time.) But the committee’s at least hope is that by focusing support on AI startups, they will be able to move into high-performance computing. It is about being able to leverage investments. The construction of supercomputer hardware is increasingly being procured and configured with AI model training in mind, and this is due to the fact that local, hyperscalar-like US AI giants are starting at a disadvantage. This will be a competitive advantage for the AI ​​ecosystem. “We don’t have the massive hyperscalers that the Americans have when it comes to training this kind of basic model, so we’re using supercomputers and a new generation that is increasingly compliant with AI. “We intend to develop a supercomputer,” a committee official said. “The objective in 2024, not just with the supercomputers that we have now, is to move in this direction so that even more small and medium-sized businesses can use supercomputers to develop these basic models. It is to do.” The plan includes acquiring “more dedicated AI supercomputing machines based on accelerators rather than standard CPUs,” they added. Will the ‘s AI support strategy align with or diverge from certain member states’ ambitions to develop national AI champions? We heard a lot about this during the recent difficult negotiations to develop the ‘s AI rulebook, in which France took the lead in pushing forward the AI rulebook. Regulatory carve-outs to the underlying model It drew criticism from small and medium-sized businesses. – As seen. But Mistral’s early presence in the ‘s supercomputing access program may suggest a consensus.

Source: techcrunch.com

The future of startups in 2024 remains uncertain

Even though the economy is showing some improvement, 2024 may not be much better than 2023 in terms of startups getting a slice of the budget pie.


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If startups want to have any chance of making it through another difficult year, they need to prove their worth now more than ever. Investors told TechCrunch’s Ron Miller and Rebecca Szkutak that they still expect some growth. And let’s not forget the elephant in the room: generative AI.

thank you for reading!

Karin

The Law of X and how cloud leaders should think about growth and profits

Set line protractor square root of x glyph abacus geometric shapes sphere tetrahedron graph computer monitor with chart graph schedule chart diagrams and icons. vector.

Image credits: Kostyantin Filichkin/Getty Images

Bessemer Venture Partner Byron Dieter and Bessemer Investor Sam Bondi said, “Many financial executives like the ‘Rule of 40’ because of the clarity of the rules, but it’s important to understand that late-stage business growth “Equivalent emphasis on profitability and profitability is flawed and leads to poor business decisions.”

That’s why the company wants to introduce a new formula into the ring. It is, according to the author, a “rule of X” that provides more “accurate weighting.” [a company’s] Growth and future recurring revenue. ”

Breaking down the pitch deck: Metafuels’ $8 million climate technology seed deck

Metafuel has raised $8 million in seed funding to support its plan to reduce aircraft emissions. However, resident pitch expert Hadje Jan Kamps quickly realized that there were some areas that could be improved. The competition slides are missing, the team his slides are a bit lacking in vibrancy, and the lack of clear questions and use of the funding slides.

Still, Metafuels can paint a picture of a rapidly growing market and how it is positioning itself as a key player within it.

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Why 30 Web3 founders are optimistic about 2024

Image credits: Raw Pixel/Getty Images

CoinFund’s Founder Forecast looked at 30 companies across the company’s Web3 portfolio and found that things are looking good for Web3 companies heading into 2024. For example, he found that 70% of respondents said they were planning to hire in the next year, but no companies were looking to downsize.

A quick guide to ethical and responsible AI governance

Image credits: DNY59/Getty Images

“A strong ethical and risk management framework is essential to navigate the complex landscape of AI applications,” said Phani Dasari, Chief Information Security Officer, Hinduja Global Solutions.

Dasari thoroughly implements key components of AI governance, including policies, procedures, and the processes themselves, helping businesses avoid the risks and benefits of using AI.

Source: techcrunch.com

Expecting an Increase in IT Budgets in 2024, Though Startups May Face Tough Conditions

I think most People would agree that 2023 was a difficult time for startups. Many layoffs occurred as companies struggled to move from growth to profitability. On the other hand, sales cycles were becoming longer and many startups were struggling to grow at a decent pace.

As we start to see that the economic indicators are starting to improve a little bit.
calming inflation,
cost of money You might think 2024 might be a better year if currencies weaken and headwinds for most currencies subside.

necessarily.

We’re entering a new era, one in which money won’t flow as freely, and according to the experts we spoke to, it won’t be coming back anytime soon. This means startups that don’t have enough capital now may continue to struggle in 2024, and flipping the calendar won’t change that.

What does that mean for startups heading into 2024? It means they need to prove their worth more than ever. This means you need enough cash to survive long sales cycles. That means he will have to fight for a piece of the corporate budget, and perhaps 2024 could be a year much like his 2023.

Budget outlook

A good starting point for budget discussions is what the proposed budget looks like. Analyst firms like IDC and Gartner forecast IT spending each year, but they typically adjust throughout the year as reality becomes clearer.

IDC predicts growth of 6.8%, up from 5% last year. This figure covers hardware, software, and services, but excludes communications spending. Gartner, on the other hand, predicts a slightly higher rate of 8.2%.

The overall upward trend should be good news for startups looking to corporate buyers to lift their business. But his Gartner analyst John-David Lovelock, who tracks IT budgets, says that while 2023 was a year of increased efficiency, it won’t just end in the new year.

Source: techcrunch.com

Sustainable Scaling Strategies are Essential for Startups

Until recently, many Startups have prioritized growth at all costs, disregarding profitability and sustainability to acquire users and leverage deep venture capital to dominate markets. However, recent market conditions have shifted towards ‘lean growth’, which balances growth and profitability and creates a path to sustainable scale-up.

As investors, we focus on identifying efficient growth in a company’s early stages. What are the early indicators of long-term success and efficient growth of a startup? To find the answer to this question, we use a variety of analyses, some of which we will discuss in this article .

As investors, we leverage cohort analysis to uncover the mechanisms of growth, retention, and sales efficiency.

Given the different ways LTV can be calculated, the lack of steady-state churn data, and the estimates of LTV/CAC calculations, it’s possible that we don’t know the true meaning of what drives customer acquisition and retention for businesses. There is a gender. Given the shortcomings of LTV/CAC calculations, we suggest using cohort analysis to plot how long it takes to recoup the initial sales and marketing spend to acquire each cohort .

The flaws in using LTV/CAC — why use cohorts to measure sales efficiency?

Before getting into the analysis, I would like to explain why commonly used metrics can be misleading. Investors often evaluate a company’s go-to-market engine by its LTV/CAC (lifetime value/customer acquisition cost) metric, but this metric is not important for early-stage companies for several reasons. This often happens.

  1. There are too many ways to calculate LTV.
  2. Churn rates are not stable enough to accurately predict a customer’s lifetime. As an early-stage company, your customer churn rate will fluctuate as you pursue product-market fit. If the product improves over time by adding features that address customer needs, we would expect the churn rate to decrease. Despite product improvements, there are external factors beyond a company’s control, such as macro headwinds, that can drive higher churn rates.
  3. There is a time discrepancy in this ratio. LTV/CAC relates today’s sales and marketing spend to a customer’s future discounted cash flows, which are essentially estimates. For example, using metrics collected during the COVID-19 outbreak to predict the future may result in inaccurate predictions.

What is a cohort? Why is it important?

Cohort analysis is a method of evaluating a business by classifying customers into groups (cohorts) from different points of acquisition and observing how they behave over a defined period of time. Tracked behaviors include the number of orders placed, amount spent, and number of features used over a period of time.

This analysis can be applied to various business models such as SaaS, FinTech, and even marketplaces (at the time, we used this analysis to conduct our analysis) ride-hailing company).Cohort analysis is valuable in looking at specific variables over time This allows you to understand the business story regarding revenue, acquisition costs, and churn within a single cohort and across cohorts.

Here’s how we conducted the analysis:

Source: techcrunch.com

Top funding choices for mature startups

“Entrepreneurs navigating the later stages of startup are faced with a mine of funding options, not all of which are suitable for their business,” said David Spreng, Founder and CEO of Runway Growth Capital. is writing.


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While there is no one-size-fits-all solution to financing, David explains some options to help you choose the right one for your business. For example, a strategic partnership may be a better fit and can often drive business growth. You also have the option of applying for government grants if it makes sense for your company.

thank you for reading!

Karin

A lone figure stands at the entrance to a hedge maze, with an American flag in the center

Image credits: Bryce Durbin/TechCrunch

Dear Sophie

My colleagues and I work at a large technology company. We have an idea that we would like to pursue for a startup. We both have H-1B visas. Our I-140 EB-2 green card petition has been approved, but we are waiting for our green card priority date to become current. How do I transfer my H-1B to a new startup? Can I transfer our green card to a new startup as well?

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Our resident pitch expert, Haje-Jan Kamps, trained an AI model on thousands of pitch decks. This tool analyzes your pitch deck and provides feedback. Of all the decks the tool analyzed, only 6% contained all the information the AI ​​robot was looking for. Haje offers some tips on how to fix common mistakes when putting together slides.

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Champ Suthipongchai, co-founder and general partner at Creative Ventures, writes that more conventional investors are starting to call themselves deep tech investors. Before choosing a deep tech fund manager, it’s a good idea to answer a few questions, such as: Does their investment approach make sense?

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CRM isn’t just for sales teams. Founders can use these tools to streamline their relationships with investors. A good CRM will help you track interactions, remind you to follow up, and generate detailed reports.

Source: techcrunch.com

Q3 Sees Another Drop in VC Funding for Foodtech Startups as Deals Decrease

Venture capital investment in the food technology sector fell for the eighth consecutive quarter in Q3 2023, with 205 deals reported reaching $2 billion in value. New PitchBook Report.

This is a 13.9% decrease compared to the previous quarter, when 268 investments were made worth $2.2 billion. And compared to the previous year, it was down more than 71%. At PitchBook, we consider “food tech” to be a field that includes alternative proteins, bioengineered foods, discovery and reviews, e-commerce, food production, restaurant and retail technology.

“It’s a little disappointing to see deal activity continue to be weak,” report author Alex Frederick, senior analyst for emerging technologies at PitchBook, told TechCrunch. “But the market is still developing.”

He believes one of the bright spots in the third quarter was Instacart’s IPO, and says there was excitement in that regard, especially since it did so well. But Frederick also said he hasn’t yet seen many other tech startups retreat.

He added: “The IPO window remains closed and venture activity will continue to be challenged.”

Investor opinion

Meir Rabkin, founder and managing partner of climate technology venture firm Blue Vision Capital, said in an interview that climate technology as a whole has been “very resilient” over the past two years. He notes that this resilience is about corporate valuations, and that the contraction felt in other sectors was not as widespread in climate technology.

Rabkin said investing in food tech is “a bit of a tough space” for a variety of reasons, including relatively high capital expenditures and time-consuming research and development.

“That being said, there’s a lot of disruption and innovation that needs to go on there,” Rabkin said. “It’s a very exciting space to be in.”

But Christina Rohr, managing director of food and agriculture investments at impact investment firm S2G Ventures, says capital constraints aren’t all bad.

She found that when the availability of capital decreased, companies’ business models became more resilient because founders considered more capital-efficient methods. She is also considering different types of collaborations, including licensing her models.

Lohr isn’t surprised that venture capital is lagging in food technology, as companies focus on achieving scalability and positive unit economics.

“We are in an environment that is influenced by commodity prices and supply chain costs,” Lohr said. “Given all of this, to be scalable, costs must be comparable to existing technology and products. With these large rounds coming together, investors are looking at technological milestones and , we look at the combined ability to achieve these milestones in a manner that has positive unit economics.”

Plant-based is not growing as fast

Meanwhile, the alternative protein sector saw $724.2 million invested in 46 deals in the third quarter. The report says venture capital funding for plant-based foods is “down significantly from its peak in Q3 2021,” but deal activity remains strong, with further increases for the second consecutive quarter. That’s what it means.

Despite the rise in plant-based investment deals, Pitchbook’s Frederick said the sector is “struggling” when it comes to meat substitutes, citing shrinking grocery store shelf allocations. Ta.

The reasons for this are primarily price and taste perception, and because these products are processed foods, it is difficult to get new customers to try these premium products, Frederick said.

“It’s hard to get it and keep it on the shelf,” he said. “Achieving results is critical for these companies.Currently, consumer packaged goods across the board are under significant challenge from rising prices.Consumers seek lower-cost alternatives. The trend is for plant-based beef companies to sell at a 2% price premium over conventional meat.”

Notable deals in alternative proteins in the third quarter include that of Meati. Series C extension is $200 millionMeatable’s $35 million round and €40 million raised is enough.

As seen on TechCrunch

Fresh capital injection puts Farmless on path to first alternative protein product

I wrote a funding update on Farmless, a company I reported on earlier this year. A Dutch startup working to develop alternative protein sources through fermentation technology has raised a further €4.8 million in seed funding. This will be applied to Farmless’ goal of discovering microorganisms that can be fermented and used in various food applications.

what else are you reading

Great deal: The Canadian Food Innovation Network has awarded Crush Dynamics approximately $2 million to develop and test new ingredients that improve food quality and reduce sugar and sodium content in foods. learn more.

Sustainable supply chain: The Clean Food Group has now received £1 million from the UK Government to fund a project to promote new low-emission food production systems. read more.

Cultured meat support: Alternative protein investor Big Idea Ventures has launched Nexture Bio, a startup that will develop scaffolding technology used to create 3D meat substitute products that more closely resemble whole cuts of meat. get the scoop.

Eye stain: The alternative seafood industry has a new advocate: the Future Ocean Foods Association, founded by Marissa Bronfman. It involves his 36 companies from 14 countries representing cultivation, plant-based and fermentation technologies. read more.

Next time I go to New York, I will: Stop by Eleven Madison Park to try The Every Company’s newly added plant-based egg alternatives to the menu. check it out.

If you have an interesting tip or information about something happening in the world of venture or food technology, please contact Christine Hall at chall.techcrunch@gmail.com or Signal at 832-862-1051. Anonymous requests will be honored.

Source: techcrunch.com