Sports

Startups Weekly: A Look at the Latest from Y Combinator Startups

Mashi Nordic Saturday, May 18 2024

Welcome to Startups Weekly — your weekly recap of everything you can’t miss from the world of startups. Sign up here to receive the Startups Weekly newsletter in your inboxes.

It’s the most wonderful time of the year … That’s right, we’re back with all the must-see companies from the current batch of Y Combinator startups. AI was, not surprisingly, the dominant theme, with 86 out of 247 companies identifying themselves as an AI startup. However, with 187 mentioning AI in their pitches, we may be approaching bubble territory. We have curated a couple of roundups for you, including the 18 most interesting companies and the TechCrunch staff favorites.

Additionally, we have an in-depth interview with the founder of Ember, the popular mug company, discussing how he divided his company to attract MedTech and life sciences investors.

Most interesting startup stories from the week

Image Credits: PM Images (opens in a new window) / Getty Images

This week brought a different twist on startups losing money with Trump’s Truth Social. The situation resembles a bad reality TV show, focusing on financial struggles and the suspense of running out of cash amidst a Nasdaq debut under $DJT. Trump Media & Technology Group (TMTG) revealed a $58 million loss on just $4 million in revenue, diverging from the typical Silicon Valley narrative of burning cash for future profits. Instead, TMTG faces challenges with limited user growth, lack of VC backing, and struggles to attract advertisers, all while being scrutinized publicly.

IPOs make headlines: Cybersecurity company Rubrik, known for heavy venture capital funding, sets its sights on an IPO. With significant losses, modest revenue growth, and a shift to subscription models, Rubrik's journey to the public markets is a noteworthy one.
Accel's India strategy: Accel, a VC firm with numerous Indian unicorns in its portfolio, faces challenges with its Atoms accelerator program as founders perceive all VC money similarly — a pile of cash with strings attached.
The resurgence of crypto: Dragonfly Capital's Tom Schmidt comments on the increasing interest in crypto ventures in 2024, likening the landscape to water about to boil.

Chaos in automotive startup land

Tesla’s cybertruck exists now. That’s about the best thing your friendly correspondent can say about this design monstrosity. Image Credits: Darrell Etherington / Getty

Transportation startups face turbulent times, with Canoo's CEO's extravagant spending on a private jet overshadowing the company's meager earnings and Fisker's financial mishaps leading to uncertainty about its revenue and operations.

Sad farewell to Ghost Autonomy: The autonomous driving startup shuts down operations after significant investor funding.
Rivian's struggles: The EV maker faces challenges with low production numbers, high costs per vehicle sold, and a tough road to profitability.
Tesla's hurdles: Tesla blames various factors for a sales dip, including arson attacks and shipping disruptions, as it navigates the production of new models amidst operational challenges.

Most interesting fundraises this week

Kidsy's catalog drew investor interest. Image Credits: Kidsy

Kidsy, a startup offering discounted baby gear, secures oversubscribed pre-seed funding, showcasing its appeal in the circular economy for baby products.

Acqui-hire romance at Stripe: Payment giant Stripe acquires Supaglue, a four-person startup, in a strategic move to enhance its offerings.
Google's $20 million investment: Google.org provides funding to nonprofits for AI projects, aiming to empower organizations through tech innovation.
BlaBlaCar's growth and acquisitions: The ridesharing platform expands its services with a substantial credit line and a focus on profitability.