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* Originally published on Calcalist , April 20 2023 Since the day ChatGPT was introduced in November 2022, it has become the fastest growing consumer product, putting the words ‘generativeAI’ in the mainstream. GenerativeAI is advancing at a breakneck speed.
Hunter Walk: Textio , the startup you founded and CEO’ed until a few months ago, is almost 10 years old. A recent essay covered the ‘AI gold rush’ and as it related to startups operating in this area, very much ‘caution ahead’ in terms of building a sustainable, differentiated business. The first one is simply focus.
Paul Graham’s recent essay, Founder Mode , describes the mindset that founders need to adopt to navigate the early stages of building a startup, and how they’re different than ‘manager mode’ which is traditional management/corporate best practices. Riches in Niches.
During these nearly two decades, I’ve had the extraordinary privilege of being a front-row witness to Israel’s incredible startup scene. I’ve seen the explosion of new unicorns created, from cybersecurity pioneers to AI disruptors and billion dollar revenue gaming startups.
Readers of VC Cafe know how big of a fan I am of startup landscapes. You can find the previous editions from Q3-Q4 2022 , Q1-Q2 2022 , July 2021 , July 2020 and May 2019. The Israeli startups building the Metaverse (updated Jan 2023). The Israeli startups building the Metaverse (credit: Remagine Ventures).
Peter Thiel The statistics for startup success are well known. About 90% of startups will fail within three years of starting. Within the group of startups that succeeds, the returns for venture investors are concentrated in few companies. Our first investment in this space was Hour One , the AI avatar text to video company.
billion on 78 generativeAI deals —almost as much as was invested in all of the previous 5 years combined, according to PitchBook data. According to a new industry report by Skyquest , AI will contribute $15.7 The global generativeAI market was valued at USD 8.12 In 2022, VCs poured $1.37
So much has happened in the generativeAI space globally, and in Israel since we published the previous version of the Israeli generativeAI landscape, back almost exactly five months ago. So far in 2023, generativeAIstartups raised $16 billion, according to Dealroom. billion, a 2.5x
The fields that generativeAI addresses—knowledge work and creative work—comprise billions of workers. GenerativeAI can make these workers at least 10% more efficient and/or creative: they become not only faster and more efficient, but more capable than before. Sequoia, GenerativeAI: A Creative New World.
While Israeli startups successes are well known in the B2B space (cybersecurity, enterprise tech, devops…), B2C startups are unsung heroes… The landscape of B2C tech in Israel is blossoming, despite several challenges. Meanwhile in the US, B2C startups raised $100 billion in 2022, 40% of the total funding.
GenAI startups secured $14.1B Many investors complain that the technology is over hyped -and now it’s official – generativeAI is at the peak of Gartner ‘s hype cycle for emerging technologies in 2023. After all, the adoption of generativeAI has been faster than many other technologies, including smartphones.
Despite the ‘crypto winter’, Web3 startups raised $7.1B Currently, the streaming space is dominated by Twitch, Youtube and FB Gaming and I would expect to see this trend continue and new tech (perhaps leveraging generativeAI) for better viewer engagement. billion in 2019 to $3.2 billion in 2024.
The rumours on the death of consumer startups have been greatly exaggerated, it seems. Less than half of the amount invested in consumer in 2019 (14.3%). Ycombinator, which is in many ways a barometer for ‘what’s hot’ in the startup market, already observed the emergence of consumer startups in December of last year.
I wrote about the streaming wars on VC Cafe back in December 2019 , and it’s interesting to see how many of my predictions came true: sports, gaming and live content to name a few. We are seeing some of this play out in the generativeAI space, where the cloud providers are active investors to attract future revenue.
The first time I wrote about startup benchmarks was in 2019 and it became one of the most popular posts on VC Cafe. Key Metrics for B2B SaaS Startups: Annual Recurring Revenue (ARR) Definition: ARR is the yearly value of a company’s recurring revenue from subscription-based services.
GenerativeAI now has the potential to exponentially grow the quantity of content created. Articles, ads, images, videos, voice, graphs, 3D objects, music, scientific papers… all can be created today with AI. Base10 includes 300 startups in their generativeAI landscape (source).
I'm graduated in 2019. So I started building, you know, like simple websites, like personal websites and lots of other things possibly I've built like 10, 15 different micro startups as I like to call them or the last five, six years. So I'm sort of like a software engineer by background.
.” Thomas Friedman Bill Gates, Thomas Friedman and Sam Altman, recently published thought pieces/interviews on why the rapid development of AI technologies means we’re entering a new era for humanity. This has been demonstrated in AI-generated text that displays gender, racial, or cultural stereotypes.
It’s just been the first anniversary since ChatGPT burst into the world and launched the term ‘generativeAI’ into the mainstream. It’s been a big year for AI. billion invested in generativeAIstartups globally in the first half of 2023 according to Pitchbook.
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