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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.
A new report collated by F2 Capital and derived from a survey of 25 early-stage VCs in Israel (including our input at Remagine Ventures ), analysed investment trends for pre-seed in 2024 and reviewed the expectations for 2025. It also notes that consumer-facing generativeAI apps with low technical barriers may be overvalued.
Fresh data from 15,000+ SAFEs signed last year (source: Carta ) Technology makes it possible to do more with less – LLMs, generativeAI have are rapidly changing the game with all kinds of automations, from coding to content creation. I genuinely believe that the next 24-36 months will be a great vintage to invest in earlystage.
So we are now at the dawn of GenerativeAI. In the realm of visual imagery, GenerativeAI has been used to create realistic images of nearly anything conceivable, from people who don’t exist (yet) to entirely new animals. We are only at the beginning of understanding how GenerativeAI will change the world as we know it.
From a technology point of view, new tech tools like generativeAI means that tasks can be accomplished with fewer resources and at a higher speed. Kudos to all the emerging managers and earlystage founders, who are out there and continue to grind against the odds. Luck favours the bold!
There is an increasing convergence of content generation, data & identity, and marketing automation , driven by AI. GenerativeAI in the Enterprise by Deloitte The Q3 2024 report of GenerativeAI in the Enterprise by Deloitte surveyed 2,770 senior leaders from organisations with active AI implementations.
AI copywriters for marketers – I’ve been seeing more and more startups focused on text automation for marketing/advertising by commercialising GPT-3, offering companies quicker turn around times around content creation for social posts or ads. It’s also able to add accents, i.e. English with a Brooklyn accent.
Meta is on track to become the most used open source AI by the end of the year. NEW VENTURE FUNDS Congratulations to Shai Policker and team Edge Medical Ventures on the new $70M med-tech fund and venture studio focused on earlystage Israeli startups! Mazal tov Yael Leventer Nacker on joining Pitango Health as Principal!
Paul Graham’s recent essay, Founder Mode , describes the mindset that founders need to adopt to navigate the earlystages of building a startup, and how they’re different than ‘manager mode’ which is traditional management/corporate best practices.
which has become the most used open source LLM, Meta AI available across all their apps for free, a new affordable version of their Meta Quest VR headset, but perhaps most excitingly, Meta Orion, smart AR glasses with holographic display (still not officially launched).
It’s also not an accident that, upon stepping back from being Textio’s CEO, I’ve built a sizable exec coaching practice working largely with earlystage founders. Textio relied on both of these strategies for a few years before launching our first truly generativeAI capabilities back in 2019.
Spoiler alert: I believe that 2024-2025 will be an amazing time to invest in earlystage startups. And not a particular sector, but AI startups, in particular generativeAI attracted close to $50 billion in funding last year, globally. GenerativeAI is game changer. billion invested in 2022.
GenerativeAI is well on the way to becoming not just faster and cheaper, but better in some cases than what humans create by hand. Creative AI or Creative automation is increasing at a rapid pace. The application landscape, while still in the earlystages, seems to be rapidly growing. How far can this tech go?
Most of the companies that raised these mega rounds are relatively earlystage in terms of product and monetisation (if at all) and about half of the companies that raised large sums, are developing LLMs, which generally requires deep pockets to cover 1) cloud costs, 2) expensive deep learning engineers 3) get the data to train the models.
Ive experienced both large and small companies, and Ive found that I thrive in early-stage environments. So much of what Regal focuses on, and what we invest in as angels focuses on role-specific or industry specific workflow tools for generativeAI to solve problems that LLMs alone cannot.
A bright spot is emerging in early-stage funding, signaling renewed investor risk appetite and startup momentum. A recent study by Capital Economics suggests that the US will lead the AI revolution, with the Asian Tigers, UK, Israel, and parts of the Nordics also well-placed to benefit.
Benchmark: Serena Capital suggests that B2B SaaS startups should aim for a 10% month-over-month MRR growth rate in the earlystages. ARR growth rates decreased significantly in 2023 and growth stage companies were most impacted. Metric Unremarkable Good Excellent Outlier ARR <$500k $500k-$1.5m $1.5m-$2.5m >$2.5m
Kudos Adi Perry and team with on securing a $10M seed round to turn cities into communities with generativeAI! NEW FUNDS Kudos Gilli Cegla on the launch of UNICAMEL , a $10M venture fund focused on earlystage Israeli startups! ROI from GenerativeAI is a rising concern. The EU has a competitive problem.
The majority of the decline comes from much lower investment volumes in the growth stage, but also fewer companies getting funded in the earlystages. If you’re a gaming founder, at the earliest stages, looking to raise money, below are a few tips to maximise your chances of success. games, every single day.
To add more heat, Microsoft launched generativeAI search results for Bing. Mistral AI released two new open-source LLM models (Nemo in partnership with NVIDIA ) and Large 2. AI at Meta launched LLaMa 3.1, The CrowdStrike global outage is estimated to have cost Fortune 500 companies $5.4bn.
However, in reality the Metaverse is still in its earlystages of development, and yet, we already can see positive examples of its impact. And there’s there’s of course the tarnishing of everything crypto and web3 related thanks to scams and public collapses like the FTX saga. Into the Metaverse event in London.
LINKS FOR YOUR BROWSER ISRAEL An interesting report and survey of 25 earlystage venture funds in Israel (including us at Remagine Ventures ) shows the major trends in pre-seed and seed. I wrote about the major takeaways on VC Cafe and you can access the report by F2 Venture Capital here.
It’s so much easier to create content these days with generativeAI. Make it easy to use and understand: The easier it is for people to get value from your product, the more likely they are to stick around and tell others Too many startups, especially in AI, focus on the technology vs. on the benefits for the users.
He talked about where we are in the timeline of generativeAI and it made me realise that we’re making an interesting shift now. The Modern AI Stack – Menlo Ventures ( source ) If not LLMs, where will the value accrue in GenerativeAI? So where should VC investors place their bets?
However, entrepreneurs have never really stopped building new consumer experiences and technology (in particular GenerativeAI) is unlocking a new wave of innovation in consumer startups. Categories like AI companions, productivity enhancers, and new creative platforms, are being launched with significant user engagement.
Looking Back: A Year Defined by GenerativeAI 2024 will go down in history as the year generativeAI truly went mainstream. It wasnt just startups leveraging generative AIcorporates like Adobe, Salesforce, and Google integrated AI-powered features into their core products, making it ubiquitous.
by Madrona Interesting stat: about 10% of Y Combinator companies achieves an exit – by Lenny Rachitsky Bonus: opening moves in global AI – report by Dealroom.co MEDIA OF THE WEEK The capital amount of M&As in the range of $100-$500m and $500-$1000m in Israel increased sharply, setting a decade record.
Sarah Guo and Conviction Capital Sarah Guo is the founder of Conviction, an earlystage VC fund, Embed is an acceleration program launched by Conviction, investing $150K into pre-seed AI startups. Stripe anticipates these trends to create significant business opportunities for new and existing companies.
Until now, the majority of the value in generativeAI has been captured by the infrastructure layer: foundational models (LLMs), the cloud providers and the hardware infrastructure/ data centres. However now, the AI landscape is undergoing a significant shift, prompting a crucial question: Where will the future value of AI accrue?
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