google-site-verification=cXrcMGa94PjI5BEhkIFIyc9eZiIwZzNJc4mTXSXtGRM Investors don’t give you a real reason why they’re giving up on your startup - 360WISE MEDIA
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Investors don’t give you a real reason why they’re giving up on your startup

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“When an investor will convey, they don’t give a real reason,” said Tom Blomfield, group partner at Y Combinator. “ANDHonestly, no one knows what the fuck is going to happen. The future is so uncertain. They only evaluate the perceived quality of the founder. When they take an exam, the thought that comes to their mind is that this person is not impressive enough. Not dangerous. Not smart enough. Not hardworking enough. Whatever it is, “I’m not convinced this person is a winner.” And they will never tell you this because you would get upset. And then you will never want to give them up again.”

Blomfield should know – he was the founding father of Monzo Bank, one in all the brightest stars within the British startup sky. He has been a partner at Y Combinator for about three years. He joined me on stage at TechCrunch Early Stage in Boston on Thursday for a session titled “How to Raise Money and Get Out Alive.” There were no spoken words or sharp blows: just real conversation, and every so often a nuclear bomb was dropped.

Understanding the facility law of investor returns

At the center of the enterprise capital model is the Law of the Power of Returns, a concept that each founder must understand to successfully navigate the fundraising landscape. In summary: a small variety of highly successful investments will generate many of the VC firm’s profits, offsetting the losses from many investments that fail.

For VCs, this implies a relentless focus on identifying and backing those rare startups that may deliver 100- to 1,000-fold returns. As a founder, your challenge is to persuade investors that your startup has the potential to be one in all the outliers, even when the probability of achieving such massive success appears to be just one%.

Demonstrating this enormous potential requires a compelling vision, a deep understanding of the market and a clear path to rapid growth. Founders must envision a future wherein their startup captures a significant share of a large and growing market with a business model that may scale efficiently and profitably.

“Every VC looks at your company and doesn’t say, ‘Oh, this founder asked me to invest $5 million. Will it grow to $10 million or $20 million? For VCs, this amounts to failure,” Blomfield said. “Batting singles for them is literally the same as zeros. It doesn’t move the needle in any way. The only thing that moves the needle on VC returns is home runs, it’s a 100x return, a 1,000x return.”

VCs search for founders who can back up their claims with data, tradition and a deep understanding of their industry. This means having a clear understanding of key metrics resembling customer acquisition costs, lifetime value, and growth rates, and determining how these metrics will evolve as you scale.

The importance of the addressable market

One proxy for energy law is the scale of the addressable market: It may be very vital to have a good understanding of your total addressable market (TAM) and to have the ability to present it to investors in a compelling way. Your TAM represents the full revenue opportunity available to your startup if you capture 100% of your goal market. This is a theoretical ceiling for potential growth and a key metric that VCs use to evaluate the potential scale of your business.

When presenting your TAM to investors, be realistic and back up your estimates with data and research. VCs are highly expert at assessing market potential and can quickly see through any try and overstate or exaggerate the scale of the market. Instead, focus on making a clear and compelling case for why your market is attractive, how you plan to capture a significant share of it, and what unique advantages your startup brings.

Leverage is the secret

Raising enterprise capital is not only about pitching your startup to investors and hoping for the perfect. It is a strategic process that involves creating leverage and competition amongst investors to make sure the perfect possible conditions for your company.

“YC is very, very good at (generating) leverage. Basically, we put together a group of the best companies in the world, put them through a program, and at the end we have a demo day where the best investors in the world basically do an auction process to try to invest in the companies,” Blomfield summarized. “And whether you run an accelerator or not, trying to create this kind of high-pressure, high-leverage situation where multiple investors are making offers for your company is really the only way to get great investment results. YC just produces it for you. It’s very, very useful.”

Even if you don’t take part in an accelerator program, there are still ways to create competition and leverage amongst investors. One strategy is to conduct a strict fundraising process, set a clear timeline for making a decision, and communicate this to investors up front. This creates a sense of urgency and scarcity because investors know they’ve a limited bidding window.

Another tactic is to be strategic concerning the sequence of meetings with investors. Start with investors who’re more likely to be more skeptical or have a longer decision-making process, after which move on to those that usually tend to make decisions quickly. This helps construct momentum and create a sense of inevitability across the fundraiser.

Angels invest with their hearts

Blomfield also discussed that angel investors often have different motivations and criteria for investing than skilled investors: themselves they typically invest at a higher rate of interest than VCs, especially for early-stage deals. This is because angels typically invest their very own money and usually tend to be swayed by a compelling founder or vision, even when the corporate continues to be in its early stages.

Another key advantage of working with angel investors is that they will often introduce you to other investors and help you gain momentum in your fundraising efforts. Many successful fundraising rounds start with a few key angel investors joining in, which helps attract interest from larger VCs.

Blomfield shared an example of a round that was slow; over 180 meetings and 4.5 months of exertions.

“This is the reality of most rounds happening today: You read about a hit round on TechCrunch. You know, “I raised $100 million in Sequoia rounds.” But honestly, TechCrunch doesn’t write much about the fact that “I worked my butt off for 4 1/2 months and finally closed the round after meeting with 190 investors,” Blomfield said. “That’s actually how most rounds end. A lot depends on business angels.”

Investor feedback might be misleading

One of essentially the most difficult elements of the fundraising process for founders is hearing the feedback they receive from investors. While it’s natural to hunt down and thoroughly consider any advice or criticism from potential sponsors, it will be significant to comprehend that investor opinions can often be misleading or counterproductive.

Blomfield explains that investors often abandon deals for reasons they don’t speak in confidence to the founder. They may cite concerns concerning the market, the product or the team, but these are sometimes only superficial justifications for a more fundamental lack of conviction or alignment with their investment thesis.

“The takeaway from that is that the investor gives you a lot of feedback on your seed-stage offering, and a few founders say, ‘Oh my God, they said my go-to-market wasn’t developed enough. You higher go and do it. But that leads people astray because the explanations are mostly nonsense,” Blomfield says. “You could end up changing your entire company’s strategy based on random feedback from an investor, when what they really think is, ‘I don’t think the founders are ok,’ which is a hard truth they are going to never know. tell you.

Investors should not all the time right. Just because an investor turned down your deal doesn’t necessarily mean your startup has flaws or lacks potential. Many of essentially the most successful firms in history were omitted by countless investors until they found the proper fit.

Be especially careful with investors

The investors you bring on board is not going to only provide the capital you have to grow, but they may even be key partners and advisors as you navigate the challenges of scaling your business. Choosing the incorrect investors can result in misaligned incentives, conflict, and even the collapse of your business. Many of them might be avoided by doing this thorough due diligence of potential investors before signing any transaction. This means going beyond just the scale of the fund or name within the portfolio and really examining their fame, track record and approach to working with founders.

“Eighty-something percent of investors give you money. Money is similar. And you return to running your business. And you need to figure it out. “I think, unfortunately, about 15-20 percent of investors are disruptive,” Blomfield said. “They give you money after which they fight to assist and it just fucks up. They are very demanding or they push you to take the corporate in a crazy direction or they push you to spend the cash they only gave to rent you faster.

One of Blomfield’s key pieces of recommendation is to seek advice from the founders of firms that have not performed well in an investor’s portfolio. While it’s natural for investors to praise their successful investments, you can often learn more by examining how they behave when things don’t go in response to plan.

“Successful founders will say nice things. But average people, singles, strikes, failures go and talk to these people. And don’t expect an introduction from the investor. Go and do your own research. Find these founders and ask how these investors behaved when times got tough,” Blomfield advised.

This article was originally published on : techcrunch.com
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Anthropic expands to Europe and raises more money

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Amazon to invest up to $4 billion in AI startup Anthropic

After OpenAI announced the newest version of its large-language GPT model, its biggest rival in the sphere of generative artificial intelligence within the US announced the expansion of its own solution. Anthropic said Monday that Claude, its AI assistant, is now available in Europe and supports “multiple languages,” including French, German, Italian and Spanish in Claude.ai, an iOS app and marketing strategy for teams.

The launch comes as Anthropic expanded its API to Europe to encourage developers to use and integrate its models. Both are part of a bigger startup push to speed up growth. To date, Anthropic has raised nearly $8 billion at a valuation of $18.4 billion (post-cash), with over $7 billion raised last yr.

Co-founder and CEO Daniela Amodei confirmed to TechCrunch that Anthropic is within the strategy of raising additional seed capital. “Yes, but we cannot comment further,” she said of the fundraiser in an emailed interview.

Anthropic’s list of nearly 60 current investors strategically includes Amazon, Google, Salesforce, SAP and Zoom. Alameda and FTX recently announced plans to sell their former shares at an increased value of $884 million in a secondary transaction related to the bankruptcy proceedings.

Anthropic is not the only company benefiting from investor appetite for backing AI startups. We know from sources close to Mistral AI, one other LLM player, that it’s in talks with investors to raise almost $600 million at a valuation of $6 billion. In particular, Softbank will not be an investor in any of those corporations, which places it amongst potential sponsors.

Investors are currently very keen about generative AI, but perhaps consumers are a bit less enthusiastic. As we reported last week, the Anthropic iOS app, launched in early May, has been met with lukewarm reception from users to this point, underscoring larger questions on how much of the interest in artificial intelligence we’re currently seeing is only a passing fad. This may pose a challenge as the corporate looks for further business opportunities overseas.

Amodei believes that bringing its own iOS to the OpenAI marketplace will not be a simple comparison, provided that Anthropic focuses totally on work and enterprise apps, in addition to more “seamless” experiences that carry over from personal accounts for work and switch between different interfaces and platforms, and this implies it can have been a stroke of luck for a bigger rival.

“ChatGPT for mobile devices came out at a time when these types of consumer apps were still very young, and a lot has changed since then,” she said. She added that “millions” of consumers within the US and UK use Claude “and we continue to see very strong adoption of our paid Claude subscription (Claude Pro) since the launch of Claude 3” – the corporate’s latest model, launched earlier on this yr.

“Our principal focus is on work and enterprise applications – and our recent software launch Claude’s team plan indicates a unbroken trend in our country. We want our users to interact with Claude in the way in which that feels most intuitive to them – via mobile, web or API. We’re aiming for a reasonably seamless experience where Claude users can switch between personal and work accounts and switch between laptop and mobile in the identical way that employees use Slack on their laptops through the workday or on their phones once they are on the way in which.”

Daniela Amodei declined to provide specific figures on API usage in Europe, but said it was seeing “soaring growth rates that continue to increase in key European markets such as France and Germany.” Arousing the interest of users across Europe is just certainly one of the challenges the corporate faces on this market.

Europe has been certainly one of the loudest voices on AI security and regulation, especially after the passing of the Artificial Intelligence Act earlier this yr. Amodei believes that Anthropic is well placed to operate inside a European framework.

“Anthropic was founded on the premise of building the most secure AI systems in the industry and at the forefront of pioneering AI security research,” she said, adding that the corporate is working “diligently” to comply with regulations similar to GDPR within the EU. She added that there continues to be much work to be done on how the Artificial Intelligence Act can be implemented.

“While the Artificial Intelligence Act has been approved, there are still many steps left to develop detailed guidance on its implementation in the coming months, and we intend to work with the EU in this process.” She added that the corporate continues to work and contribute to industry efforts to improve AI security, including banning using its technology for political campaigns and lobbying, with built-in automated systems to detect related breaches and disinformation.

Her work on mechanistic interpretation – which she described as “research aimed at opening the ‘black box’ of AI models and revealing their inner workings” – produced a breakthrough within the 2023 breakthrough around “dictionary learning” to understand what is going on contained in the AI ​​model when it’s “thinking,” she said. “We hope to ultimately use this newfound knowledge to develop methods to guide models toward safer behaviors.”

Anthropic currently employs 40 people in its London office and several contractors from European countries, Amodei said, and is preparing to hire more, particularly for the development of the brand new office in Dublin.

This article was originally published on : techcrunch.com
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Google’s 3D video conferencing platform, Project Starline, coming in 2025 with help from HP

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Project Starline - 3d model of person - Google IO 2021

 

In 2021, Google began work on Project Starline – a teleconferencing platform for businesses that uses 3D imaging, cameras and a specially designed screen to permit people to confer with someone as in the event that they were in the identical room – kind of.

Now, after years of testing and personal technical announcements, Google is making Starline available to customers in partnership with HP.

IN blog post In a pre-Google I/O announcement, Google said it would work with HP to start commercializing Starline sometime in 2025. Google can be working to integrate Starline with popular video conferencing services similar to Zoom and Google Meet, the corporate says.

“This is a significant step towards a world where connection and collaboration are possible no matter where you are,” Andrew Narkter, CEO of Project Starline, said in an announcement. “We will provide more details later this year.”

Project Starline is Google’s try to make teleconferencing a more enjoyable experience.

As my colleague Brian Heater wrote about his hands-on experience last 12 months, Starline continues to be largely a virtual experience, but it will possibly probably trick your brain into believing otherwise. The query is: With many workplaces transitioning to all-office solutions post-pandemic, will there be much demand for Starline, which initially seemed aimed primarily at hybrid offices that ceaselessly interact with distant employees?

According to A survey by Resume Builder shows that 90% of corporations with office space will return to offices by 2024. Despite the proven fact that research has not drawn definitive conclusions concerning the productivity of distant employees, the opinion of many senior executives – especially in technology — is working from home something of a failed experiment?

However, perhaps some clients will give you the option to justify Starline purely for virtual inter-office conferences. Indeed, last 12 months Google said WeWork, T-Mobile and Salesforce were testing a prototype version of the technology.

Read more about Google I/O 2024 on TechCrunch

 

This article was originally published on : techcrunch.com
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Buymeacoffee’s founder created an AI-powered voice memo app

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AI-powered tools like OpenAI’s Whisper have enabled many apps to make transcription an integral a part of their personal note-taking feature set, and the space has grown rapidly. Apps like AudioPen, Cleft Notes, and TalkNotes have proliferated in app stores and online, but most offer a reasonably limited set of features: they allow you to record notes and transcribe them, and a few offer summary features, but there’s so much to debate when it comes to the features they provide .

The newest application within the space is Voice memos. Built by a platform that provides guidance to creators Kupmeacoffeefounder Jijo Sunny and his wife Aleesha, Voicenotes wants to distinguish itself by including an AI assistant that permits you to ask questions on previous notes, in addition to providing various features resembling summaries and various formatting options.

The creators said in video that after a miscarriage, to distract themselves, they began making a voice memo tool with Jijo’s brother and Buymeacoffee co-founder Joseph Sunny. When the couple consulted with doctors, they took many voice notes to capture every part the nurses and doctors were saying in order that they could recall the knowledge later. This also fueled the thought of ​​having a transcription tool readily available so that you just do not have to replay your notes over and all over again to recollect the main points.

Jijo and Aleesha sent out the primary version of the app in March to pick testers, and made the net app public in April.

The application itself

The Voicenotes web app doesn’t require a login – you possibly can directly press the record button and begin speaking and the app will transcribe.

You can record voice notes up to at least one minute long unless you pay for the tool. Once you stop recording, you possibly can mark up notes, edit them and regenerate titles using artificial intelligence. It also permits you to use AI to reformat your note – turn it right into a blog post, tweet, to-do list or email – and the app may also generate a summary of the note and a listing of most important points.

There’s also an “Ask My AI” feature that helps you to verbally search through your notes using the AI ​​assistant – for instance, if you ought to remember what brand of dishwashing liquid you added to your shopping list two months ago.

Image credits: voicenotes.com
Image credits: voicenotes.com

The company has now released apps for iOS and Android. This is an enormous advantage considering Cleft Notes only works on Mac and iOS (still in beta). While AudioPen is out there as an internet app from anywhere, it doesn’t support background recording on iOS – in case your smartphone screen locks otherwise you switch to a different app, recording will stop.

Voice Memos also uses AI to prompt you with prompts which you can reply to and record notes.

Voicenotes.com creates a summary of your voice notes
Image credits: voicenotes.com
Image credits: voicenotes.com

Competition and motion plan

Voice Memos offers some useful features, but as we mentioned above, it enters an area that quickly becomes crowded. It also has to contend with competitors that provide higher features. For example, Cleft Notes allows for on-device transcription (which is vital since it keeps your notes private relatively than sending them to a server for transcription), provides higher integration with Apple, and permits you to record notes as much as 10 minutes long within the free tier format. AudioPen provides many more options for formatting your notes, which could also be useful to some.

In addition to competing with other AI-powered voice note apps, Voicenotes also has to compete with native apps like Google Recorder on Pixel and Samsung’s Transcription Assistant – each of that are only available on select models but could be rolled out to other models as well. technology is progressing.

Image credits: voicenotes.com

The biggest risk for all of those apps could be for Apple so as to add transcription to its voice memos apps, as it could essentially make third-party apps redundant on iOS devices. Still, offering cross-platform compatibility, higher formatting options, and extra features could be beneficial.

You can try Voicenotes totally free or pay $10 a month to unlock access to higher models like GPT-4 Turbo and Claude Opus, in addition to remove note length restrictions. For a limited time, you too can pay $50 for the “believer” plan and gain access to the app for all times (read: so long as the developer supports it). The company said it has already generated $100,000 in subscription revenue.

Jijo told TechCrunch via email that the app will feature a “simple yet elegant design,” use of the very best AI models, and an “Ask My AI” feature.

He added that Voicenotes will soon even be available on smartwatches. He desires to expand its functionality to numerous platforms as a real-time assistant. Additionally, he can also be working on turning voice notes into to-do lists with reminders.

This article was originally published on : techcrunch.com
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