Top US Investors, Global VC list, Perplexity Introduces Ads, Spotify Video Push
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Hey Founder, here are the latest tech news and insights:
- Perplexity adds Ads to its platform
- Spotify is going all in on video
- New EU search engines challenge Google
- 10 most active US investors
- Is podcasting a new media?
- OpenAI emails reveal inside chaos
- and more
PERPLEXITY LAUNCHES ADS ON ITS PLATFORM
AI-powered search engine Perplexity is entering the ad space, calling it experimentation with a new revenue stream that kicks off this week. Initially launching in the U.S., the platform will feature "sponsored follow-up questions," such as “How can I use LinkedIn to enhance my job search?” These ads will appear alongside AI-generated answers, clearly labeled as “sponsored.”
Perplexity emphasized that these ads are designed to maintain the accuracy and objectivity of its responses, assuring users that advertisers will not have access to personal data. While Perplexity markets its ad products as a premium alternative to Google’s offerings, analysts remain skeptical about the scale and targeting capabilities of its platform.
This move comes as Perplexity faces pressure to diversify revenue. With a reported 100 million weekly queries, the platform relies heavily on its premium subscription service, Perplexity Pro. As it finalizes a $500 million funding round at a $9 billion valuation, the introduction of ads signals a significant shift in its monetization strategy. However, the company’s history of plagiarism allegations and ongoing lawsuits with publishers like Dow Jones and The New York Times may complicate its efforts to attract advertisers.
META INTRODUCES LESS-PERSONALISED ADS UNDER EU PRESSURE
Meta Platforms is rolling out a new ad option for European users, allowing them to choose "less-personalised ads" without a subscription fee. This move responds to European Union regulations demanding free access to less-targeted advertising on platforms like Instagram and Facebook. The new ads will focus on contextual content from a user's current browsing session, with some displayed as unskippable full-screen formats. Meta acknowledges that this change may impact its revenue, as Europe accounts for 23% of the company’s global income.
This shift marks Meta's second ad-related concession in the EU within a year, following its controversial subscription-based ad-free model. The company has also lowered subscription prices, seemingly aiming to appease regulators investigating its compliance with EU competition laws. While Meta claims the changes could harm small businesses by reducing ad efficiency, the move reflects increasing tension between tech giants and EU regulators over data usage and privacy. With investigations ongoing, the outcome could set significant precedents for digital advertising and AI in Europe.
SPOTIFY IS GOING ALL IN ON VIDEO
Big news for creators: starting January 2, 2025, Spotify will begin paying video creators based on how much engagement their content receives from paid subscribers. This new initiative will launch in the US, UK, Australia, and Canada, alongside another major update — automated ad breaks will be turned off for premium subscribers, making for a smoother, uninterrupted viewing experience. Spotify CEO Daniel Ek shared his vision at a recent creator event in Los Angeles, stating, “We can provide an experience for your audience that is superior to any other platform.”
The move seems to be aimed at gaining back viewers that turn to YouTube for video podcasts and that pays creators billions annually through shared ad revenue. With YouTube increasingly leaning into podcasts, Spotify is positioning itself as a serious contender by offering creators direct engagement-based payouts and tools like the new Spotify for Creators hub. This hub will allow creators to track their earnings, upload short vertical clips, and access advanced analytics. As video podcasting continues to soar — with over 300,000 video podcasts now on Spotify — this strategy sets the stage for a battle to attract and retain top creative talents.
SOVEREIGN TECH IN EUROPE: TWO SEARCH ENGINES TEAM UP TO CHALLENGE GOOGLE
Ecosia, the Berlin-based eco-conscious search engine, and Paris-based Qwant are joining forces to create a European alternative to Google and Microsoft Bing. The joint venture, European Search Perspective (EUSP), aims to develop sovereign tech in Europe with a new web index tailored to European languages and values, offering greater control over search results to align with their missions. For example, Ecosia aims to highlight sustainable options, such as train travel over flights. EUSP will rely on Ecosia for funding and data, Qwant for labor, and OVHcloud for infrastructure, with testing set to begin in France next year and Germany by late 2025.
This collaboration comes as new EU regulations curb tech giants’ dominance, providing an opening for smaller players. With Google and Bing controlling 95% of the global search market outside China, Ecosia and Qwant’s move could encourage regional innovation. By creating a localized, ethical search experience, they aim to better serve Europeans while challenging the global search market's status quo.
AI IN ACTION: DRIVING GTM STRATEGIES FOR B2B SUCCESS
We are excited to host a live panel discussion on how AI is transforming Go-to-Market (GTM) strategies for B2B growth. This event will delve into AI's role in reshaping GTM strategies for startups, covering real-world examples, bold ideas, and challenges shaping SaaS.
Date: Thursday, November 21, from 7:30 PM to 8:30 PM EST on Zoom
Speakers:
Annie Phan: Chief Data Officer at Lavendr Application Software, a leader in AI-driven SaaS solutions for beauty and wellness.
Levi Lian: CEO at Raycaster (YC F24), an expert in Data, AI, and GTM strategies.
Paul Irving: Partner & Platform Director at GTMfund, focused on investing in top B2B software companies and connecting them with a world-class network of GTM leaders.
Whether you’re leading Sales, GTM, or Revenue, or simply fascinated by AI's potential, this is a prime opportunity to exchange insights and connect with peers in the field.
DREAMIT VENTURES ACCELERATOR
Apply Anytime
Dreamit Ventures specializes in accelerating growth-stage startups in Healthtech, Securetech, and Urbantech. This program focuses on helping startups scale by connecting them with top investors, executives, and industry leaders. It provides mentorship, market access, and pitch refinement over a 14-week period, culminating in Investor Sprint, where startups present to potential backers.
ALCHEMIST ACCELERATOR PROGRAM
Apply until Dec 27
Alchemist Accelerator is a leading program tailored for enterprise startups. Focused on revenue generation and customer acquisition, it provides funding, mentorship, and corporate connections. The program spans six months and includes intensive workshops, pitch training, and access to top-tier investors. It concludes with a Demo Day where startups showcase their solutions to potential backers.
LIST OF GLOBAL VCS
We keep an up-to-date list of global VCs and would love to share it with you!
Simply reply “Hello" to this email, and our team will send you our curated list.
EUROPEAN AI STARTUPS REBOUND WITH RECORD VC INVESTMENT
Venture capital investment in European AI startups is set to reach €13.2 billion in 2024, a 20% increase from last year’s €11.4 billion, per PitchBook data. With €11 billion already invested across 1,605 deals, AI has become Europe’s second-largest vertical by deal value, second only to SaaS and surpassing cleantech and climatetech, driven by demand for generative AI.
Mega-rounds are fueling the surge, including London-based Wayve’s record $1.05 billion Series C and Paris-based Mistral AI’s $640 million Series B. As one of the few sectors outpacing 2023, AI is solidifying its role as a cornerstone of Europe’s VC ecosystem.
THE 10 MOST ACTIVE US INVESTORS IN EUROPEAN VC DEALS
US investor participation in European venture capital has rebounded this year, with 21.4% of all European VC deals involving US backers, up from 19.5% in 2023, according to PitchBook data. While the total deal count is expected to fall below last year’s figures, the €27.5 billion invested across 1,603 deals puts 2024 on track for the second-highest US involvement in a decade, behind only 2022's 22.5%:
- Plug and Play Tech Center
- FJ Labs
- SOSV
- Insight Partners
- Accel, Acequia Capital
- Index Ventures
- Y Combinator
- Sequoia
- Techstars
EARLY-STAGE ROUNDS
- Linkup Secures €3M to Revolutionize AI's Interaction with the Web
- Pemo Secures $7M in Pre-Series A to Drive Growth and Expansion
- Bubty Raises $3.3M to Scale Global Freelancer Compliance Solution
- Predikt Raises €750,000 to Revolutionize Financial forecasting With AI
ANDREESSEN HOROWITZ IS THE MOST ACTIVE US INVESTOR
October was a busy month for venture capital, led by Andreessen Horowitz (a16z) with 14 U.S.-based startup deals, including Valon Technologies’ $100 million Series C and Infinitus Systems’ $51.5 million Series C, per Crunchbase data.
Meanwhile, Y Combinator once again topped the list of incubators and accelerators, leading with 18 deals in October. Despite missing OpenAI’s $6.6 billion raise, top firms remained highly active across sectors like AI, healthcare, and nuclear fusion.
PODCASTING IS THE NEW MEDIA
Originally published on Neil Patel’s LinkedIn
EMAILS EXPOSE OPENAI’S TURBULENT EARLY DAYS WITH MUSK AND ALTMAN
A legal battle involving the world’s richest man and one of the fastest-growing companies has unearthed early emails between Elon Musk, Sam Altman, and others, offering a glimpse into OpenAI’s formative days. The lawsuit also reveals Musk’s sense of betrayal over OpenAI's shift from its original nonprofit vision — with him as a key leader — to a for-profit model.
In the newly filed complaint, Musk’s lawyers allege that OpenAI is “actively trying to eliminate competitors” like xAI by pressuring investors not to fund them. They also claim OpenAI is unfairly benefiting from Microsoft’s infrastructure and expertise, describing the relationship as a “de facto merger.” Here are some of the most revealing snippets from the case.
Written by Anna Lebedeva, the co-founder at The Top Voices and a startup ecosystem enthusiast.
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