EC Newsletter

Tech layoffs are accelerating, according to the data. The surge in staff cuts comes after reductions in human capital slowed so much in the back half of 2023 that we wrote that “tech layoffs are all but a thing of the past.” At the time, reported layoffs had been trending down for months and months to reach what appeared to be a nadir that was so low it felt inconsequential. How things have changed. At the time, we posited that rising tech valuations were taking some pressure off technology concerns and that…

“It’s the single best time to invest in companies,” according to 10T Holdings and 1RoundTable Partners’ CEO, Dan Tapiero. Crypto reporter Jacquelyn Melinek has the inside scoop on why his firm is taking the long view to ride out the volatility of the web3 landscape as it raises its fourth fund. Full TechCrunch+ articles are only available to members.Use discount code TCPLUSROUNDUP to save 20% off a one- or two-year subscription. Thanks for reading! Karyne There’s an AI ‘brain drain’ in…

After watching Lucy pull the football from Charlie Brown’s foot at the last possible moment time and time again, we have learned our lesson and are therefore hesitant to believe that 2024 will be the year of the IPO market’s return. It may or may not happen, but we’re not betting on it. Alternative sources of liquidity are therefore top of mind — there’s a towering pile of private companies in need of an exit, or a bailout. Recent research from Cowboy Ventures’ Aileen Lee underscores how quickly illiquid wealth was…

Ten years ago, Cowboy Ventures founder Aileen Lee coined the term “unicorn” to describe startups that reached $1 billion valuation. At the time, there were only 39 startups on the list, but cut to today, where more than 500 companies now live on the list. Full TechCrunch+ articles are only available to members.Use discount code TCPLUSROUNDUP to save 20% off a one- or two-year subscription. Not only did the number of unicorns boom, but also what they’re focused on shifted: The pendulum swung hard in the direction of…

After a year of people throwing money at AI companies, investors are now looking for startups that are more solid and viable. That could prove daunting for AI founders: AI is expensive to build and maintain. Full TechCrunch+ articles are only available to members.Use discount code TCPLUSROUNDUP to save 20% off a one- or two-year subscription. SymphonyAI CEO Sanjay Dhawan offers some tips on how to build a strong foundation for a profitable AI startup. His first tip? Be realistic about your…

Welcome to the TechCrunch Exchange, a weekly startups-and-markets newsletter. It’s inspired by the daily TechCrunch+ column where it gets its name. Want it in your inbox every Saturday? Sign up here. I would be lying if I said that mixed reality and generative AI were two of my favorite things. And yet, a Christmas Day TV special made me unexpectedly bullish about them. — Anna Versailles 400 I am not an early adopter of the metaverse. The only VR headset I own is made of cardboard, and I haven’t…

Welcome back, and welcome to 2024! We’re starting the year off on a high note: After a mediocre 2023, investors are optimistic about exit activity picking back up in 2024. Some think M&A activity will skyrocket, while others think we will see the IPO market bounce back. Full TechCrunch+ articles are only available to members.Use discount code TCPLUSROUNDUP to save 20% off a one- or two-year subscription. But the biggest question on our minds: When will we start seeing all this activity?…

As valuations come down, now more than ever, founders “need to prove their company is built to last with long-term profitability and scalability in mind,” writes Russ Heddleston, CEO of DocSend at Dropbox. Full TechCrunch+ articles are only available to members.Use discount code TCPLUSROUNDUP to save 20% off a one- or two-year subscription. According to DocSend data, investors aren’t scouring pitch decks as earnestly as they were in the past. There’s still a market for early-stage deals,…

Junkification and fierce competition paint a tough path ahead Remember when we wrote that Spotify’s latest layoffs make sense? Well, we feel the same about Etsy’s announcement that it would lay off 11% of its workforce. This is not us being callous with employees affected by these layoffs, or making excuses for what led the NASDAQ-listed marketplace to that point and could perhaps have been prevented. We are just saying that this isn’t much of a surprise. The Exchange explores…

CB Insights estimates that Figma is still worth between $8.3 billion and $9 billion A failed acquisition often spells doom for the target company. But despite its $20 billion takeover by Adobe not going through, there are reasons to think that Figma will be just fine. That the online design company will get a $1 billion termination fee from Adobe will help soften the blow. But it is not the windfall some think it is; spending more than a year in regulatory limbo always takes a toll…