Startups that are Ramp-ing up, and startups that are full of sh**
Aug 25, 2023
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TechCrunch contributors Mary Ann and Alex, along with startup reporter Kirsten Korosec, discuss Nvidia's impressive earnings report and the growth of the company. They also cover funding news for Ramp, Lex, and Northvolt, as well as the public listing of Better.com. The hosts highlight the presence of startups focused on excrement in this year's TechCrunch Battlefield 200 companies. The podcast covers various topics including fintech, AI-powered writing tools, battery-building, and challenges faced by startups in a tough market.
Nvidia's booming revenue is driven by high demand for AI chips and the growth of the data center business, indicating an AI boom in the hardware industry.
Ramp's $300 million raise at a lower valuation showcases a necessary market correction in the overvalued fintech space, while still commendable given the current market conditions.
Deep dives
Nvidia reports impressive earnings with soaring revenue
Nvidia reported revenue of $13.51 billion in the second quarter, double the amount from the same period last year. The company's success is largely attributed to the booming demand for AI chips and the growth of the data center business. Nvidia projects even higher revenue of $16 billion for the current quarter, indicating high demand for their products. While the company may face limitations in scaling their AI-focused chips, the hardware industry is experiencing a real AI boom.
Ramp, a fintech startup, announced that it has raised $300 million in an annualized revenue of $300 million, a 4x increase compared to last year. However, this raise came at a 28% lower valuation of $5.8 billion. While the valuation decrease may seem significant, given the previous hype around fintech startups, it is comparatively modest. The fintech space was overvalued due to inflated expectations, and now we are seeing a necessary market correction. Ramp's performance is still commendable, considering the current market conditions.
Lex raises $2.75 million in seed round led by True Ventures
Lex, a writing service with AI capabilities, has secured $2.75 million in a seed round led by True Ventures. Lex aims to provide a modern and efficient writing experience by incorporating AI tools to assist writers. The startup offers a user-friendly interface with specific writing tools tailored to various styles and genres. Lex's funding will enable them to further develop and enhance their technology. The company's unique approach to writing has garnered attention and raised anticipation for its potential in the market.
Cruise faces setbacks as it reduces self-driving vehicle fleet by 50%
Cruise, the self-driving vehicle technology arm of GM, has been forced to reduce its fleet by 50% after a series of incidents raised concerns about the company's performance. These incidents involved driverless vehicles entering construction sites, causing traffic disruptions, as well as a collision with an emergency vehicle. As a result, the California Department of Motor Vehicles is investigating Cruise's operations. The setbacks highlight the challenges faced by self-driving companies in achieving fully autonomous vehicle capabilities and the need for further development and improvements.
Ramp raises $300M: In this market, a multi-billion-dollar valuation is a win for a fintech, even if Ramp's new price tag is a bit lower than it was previously. So, while Ramp likely doesn't love that it raised a down-round, it does have fresh capital and is worth $5.8 billion. That's simply not that bad.
Lex raised $2.75M: Alex covered AI-powered writing tool's Lex seed round. Kirsten got to give the app a try, and we all had nice things to say about the nascent startup.
Northvolt is bringing its volts to North America: The global battery-building boom includes Swedish company Northvolt building a new facility in the United States. The company raised $1.2 billion from BlackRock.
Credits: Equity is produced by Theresa Loconsolo with editing by Kell. Bryce Durbin is our Illustrator. We'd also like to thank the audience development team and Henry Pickavet, who manages TechCrunch audio products.
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