Amazon's partnership with Better.com to offer employees the option to use their equity for home purchases raises questions about why Amazon would align with a company facing challenges.
Despite the recent hype and broad application of generative AI, funding for this technology has not seen a significant wave of capital inflow, raising questions about its future growth and investment landscape.
Deep dives
Amazon teams up with Better.com for employee home financing
Amazon has partnered with Better.com to offer its employees the option to use their vested equity to finance the purchase of a home. However, the choice of Better.com as a partner is surprising, considering the company's rocky existence and recent controversies. Better.com has struggled in recent years, with business decline, layoffs, and its postponed IPO. The partnership raises questions about why Amazon would align with a company facing such challenges.
Generative AI funding decline despite web3 boom
While the web3 boom saw significant venture capital investment in crypto and blockchain companies, the same trend did not carry over to generative AI. Data shows that funding for generative AI has not experienced a similar wave of capital inflow, and it is surprising given the recent hype and broad application of this technology. The decline in funding for generative AI raises questions about its future growth and the factors that contribute to the investment landscape.
Boston startup scene shows resilience despite challenges
Despite challenges faced by the Boston startup scene, recent data shows resilience and growth in investment. In 2021, Boston attracted $34 billion in investment, doubling the amount from 2020. While the numbers decreased in 2022, this decline is in line with broader trends in the startup ecosystem. The city's strong focus on biotech and hard science, along with its robust education clusters, contribute to its continued prominence as a startup hub.
Amazon and Better.com partnership raises questions
The recent partnership between Amazon and Better.com, where employees can use their stock to finance home purchases, raises several questions. Better.com has faced controversy due to layoffs and business decline, and the company's overall performance is concerning. The choice of Better.com as a partner is surprising, considering these challenges and the availability of other mortgage startups. Furthermore, Better.com charges higher rates on mortgages, making this financing option less appealing for employees.
Mary Ann, Becca, and Alex gathered to riff through the week's biggest startup and venture news. A big thank you to Becca for stepping in while Alex was on leave, and a note before we dive into topics that Natasha Mascarenhas will be back on the podcast next week!
AI, crypto, and venture hype cycles: The crypto venture capital boom has collapsed; but is there a new AI bubble forming? Not in the way that we expected, it turns out.
Amazon and Better.com: Of all the things that we didn't expect to see this year, the latest Amazon-Better tie-up is up high on our list. We had more than a few thoughts.
And that is all we had time to chew on, friends. We will talk to you soon!
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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