Tuesday, 15 August 2023

‘Winners take none’ is mantra for the unicorn era

Plus, what all that dry powder means

August 15, 2023

Hi, Agen. When well-funded startups compete in an emerging space, we usually expect at least one will come out on top. But in once-hot sectors from scooters to co-working, that hasn’t happened. It’s a phenomenon one VC calls “Winners take none.”

🥊 For unicorns, competition doesn’t always yield winners

In the startup space, fierce rivalry does not always translate into success for the fiercest. Using Crunchbase data on unicorn rounds, we put together a list of sectors, from groceries to used cars, in which startups raised gobs of cash without yet producing an emergent winner or winners.

💲 What does ‘dry powder’ mean for startups?

“Dry powder,” otherwise known as the amount of money limited partners have committed to venture capital funds, has piled up to historically high levels. That’s either a positive signal for startups or it means nothing. Equidam’s Dan Gray explains how to tell the difference.

🤖 Anthropic raises $100M from SK Telecom

Anthropic — a ChatGPT rival with an AI assistant named Claude — raised a $100 million round from SK Telecom, South Korea’s largest telco. The financing brings total capital raised over the past 16 months by San Francisco-based Anthropic to more than $1.4 billion.

Despite some controversies, investors are still bullish on Neuralink, Elon Musk’s brain-implant company that aims to let people communicate with computers through brain function. The startup, which earlier this year received approval for its first human trials, said last week that it raised another $280 million. That was enough to top our list of the week’s 10 largest funding rounds to U.S. startups.

✂️ Cuts keep coming

Since the start of 2022, over 160,000 U.S. tech workers have lost their jobs, per our Tech Layoffs Tracker. In total, 16 organizations were added to the tracker last week.

🦄 The Unicorn Board: Track the most valuable private companies

More than 1,400 companies are ranked on The Crunchbase Unicorn Board, a curated list of the most valuable private companies in the world, updated daily.

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